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Report No. 58

Discretion of High Court

5.33. The question was discussed by the Supreme Court in a case reported1 in the year 1967. The Company Law Board (of the Central Government) issued an order on 19th May, 1965, under section 237(b) -of-the- Companies Act, 1955, appointing four persons as inspectors for investigating the affairs of the Barium Chemicals Ltd., and for ascertaining the irregularities and contraventions alleged to have been committed by the managing director and officials of the Company. This order of the Company Law Board was challenged by the Company, in a writ petition under Article 226 before the Punjab High Court.

During the course of the hearing, the petitioner company applied to the High Court for summoning a respondent for his cross-examination about certain disputed facts. The High Court did not pass any separate order on this application, but dismissed it in the course of its judgment on the main petition on the ground that it was not necessary to ask additional evidence and that the affidavits filed by parties were enough for the disposal of the petition.

1. Barium Chemical Ltd. v. Company Law Board, AIR 1967 SC 295.



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