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Showing contexts for: 634a in Coastal Roadways Ltd. vs Kanoi Plantation (P) Ltd. on 2 March, 2005Matching Fragments
3. But, he contends, these orders cannot be executed by the civil court and they must be executed by the company court itself or any other court where this order could be transferred for execution, not by the civil court. He has drawn my attention to the various Sections, viz., 634, 634A, 635, 482 and 443 of the said Act and contends that it is a self contained code and exhaustive as far as procedure is concerned. The scheme of the aforesaid section is that right from the stage of entertaining application for winding up and to bring an end to the same with logical conclusion it has to be done by the same court. He submits further that definition of the "court" is given in Section 2(11) of the said Act. From the definition it is clear that there is no meaning and contemplation of any court than the same mentioned in the said section. It will appear from the definition of the said section the same does not cover the principal civil court of original jurisdiction. Rather definition of "district court" given in Section 2(14) clearly refers to principal civil court of original jurisdiction in the district but does not include the High Court in exercise of its ordinary original civil jurisdiction. There is no express provision in the Act that orders or decrees passed by the company court shall be executed by the competent court of civil jurisdiction.
12. Now, the crucial question comes as to which court will enforce this order of payment. According to Mr. Kar, this execution proceedings lies in the court which has passed the order, whereas Mr. Kapoor, contends that reading language of Section 634 execution proceedings shall be levied before the principal court of civil jurisdiction within whose jurisdiction the registered office of the company situated meaning thereby before this interlocutory court.
13. It is true in the said Section 634 it does not expressly make clear where the execution proceedings are to be initiated. Upon careful reading of Section 634 and also Section 634A it appears to me the order of payment can be executed by the court which has passed the order. Similarly, Section 634A of the said Act has empowered the Company Law Board to execute it. In the decision of the Bombay High Court rendered in the case of Mrs. Pratibha Inderjit Kapur v. Nilesh Lalit Parekh [2002] 111 Comp Cas 177 this point was dwelt upon. It is observed by their lordships that Section 634 provides that the orders may be enforced by that court and Section 634A provides for enforcement by the Company Law Board which does not have any inherent power to pass a decree. It is also observed that Section 634 provides that if the Board is unable to execute order then it may send its order for execution to the court within the legal limits of whose jurisdiction the registered office of the company is situate or the person concerned voluntarily resides or carries on business, etc. It is further observed that Section 634 deals with order passed by the court, which, has jurisdiction to pass decrees, vide Section 10 of the Companies Act.
(3) For the purposes of jurisdiction to wind up companies, the expression 'registered office' means the place which has longest been the registered office of the company during the six months immediately preceding the presentation of the petition for winding up.
15. Therefore, the court means the company court and this Court has exclusive jurisdiction to pass any order including enforcement of the order passed by it. If for any reason the order passed by one company court cannot be enforced under the situations mentioned in Section 635 then such order can be executed by another company court not by any other court. Therefore, the intention of the Legislature is clear that the order passed by the company court can only be executed by company court alone and no other court. The definition of the court (section 10) under the said Act is not intended to mean and include the civil court. In fact, it will appear under Section 446 that after winding up order is passed or official liquidator has been appointed as provisional liquidator, it is the company court which has got exclusive jurisdiction to entertain any suit or proceeding by or against the company. Therefore, in my opinion reading as a whole as regard jurisdiction of the company court the authority of any other court for any matter is excluded except in case of enforcement of order passed by the Company Law Board. In this respect special provision under Section 634A of the said Act, has been provided.