Case Note & Summary
The plaintiff, Omprakash Madanlal Pandya, filed a suit (Suit No.1738 of 1979) against Shree Vallabh Glass Works Ltd. and others for recovery of Rs.1,53,190/- being salary, increments, privilege leave, provident fund contribution, leave travel allowance, and bonus from 1.10.1976 to 31.9.1979. The plaintiff claimed he was an employee of the defendant company from 1.10.1969 at a monthly salary of Rs.1500/-. After the suit was filed, the defendant company went into liquidation, and the Gujarat High Court at Ahmedabad, by order dated 10.03.2003 in Company Petition No.157 of 2000, wound up the company and appointed the Official Liquidator under Section 434 of the Companies Act, 1956. The plaintiff then took out Chamber Summons No.1188 of 2003, and by an order of this Court (S. Radhakrishnan, J.), the Official Liquidator was directed to give inspection of the suit papers. The present Chamber Summons No.1269 of 2004 was taken out for an order and direction against defendant no.4 (the Official Liquidator) to give inspection of the complete papers, records, and proceedings in the suit. The court, presided over by Justice S.U. Kamdar, held that the plaintiff, being a party to the suit, is entitled to inspect the court records. The court noted that the Official Liquidator is now in control of the defendant company's records and must facilitate such inspection. The court allowed the Chamber Summons and directed the Official Liquidator to give inspection of the suit papers to the plaintiff.
Headnote
A) Civil Procedure - Inspection of Court Records - Right to Inspection - Order XI Rule 14 CPC - The plaintiff sought inspection of complete papers, records and proceedings in a suit for recovery of dues from a company that had gone into liquidation. The court held that the plaintiff, being a party to the suit, has a right to inspect the court records and the Official Liquidator, who is now in control of the defendant company's records, must facilitate such inspection. (Paras 1-4)
B) Company Law - Winding Up - Official Liquidator - Section 434 Companies Act, 1956 - The defendant company was wound up by the Gujarat High Court and the Official Liquidator was appointed. The court directed the Official Liquidator to give inspection of the suit papers to the plaintiff, as the plaintiff is entitled to access the records to pursue his claim. (Paras 2-4)
Issue of Consideration
Whether the plaintiff is entitled to inspection of court records in a suit where the defendant company has been wound up and the Official Liquidator has been appointed, and whether the Official Liquidator can be directed to give such inspection.
Final Decision
The Chamber Summons is allowed. The Official Liquidator is directed to give inspection of the suit papers to the plaintiff.
Law Points
- Right to inspection of court records
- Order XI Rule 14 CPC
- Section 434 Companies Act
- 1956
- Winding up proceedings
- Official Liquidator's duties
Case Details
2005 LawText (BOM) (05) 41
Chamber Summons No.1269 of 2004 in Suit No.1738 of 1979
Mr. A.K. Tripathi i/b S.P. Pala for the plaintiff, Ms. N. Solanki i/b K. Jain for the defendants
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Nature of Litigation
Chamber summons for inspection of court records in a suit for recovery of money from a company in liquidation.
Remedy Sought
Plaintiff sought an order directing defendant no.4 (Official Liquidator) to give inspection of complete papers, records and proceedings in the suit.
Filing Reason
The plaintiff needed inspection of court records to pursue his claim for recovery of salary and benefits from the defendant company which had been wound up.
Previous Decisions
The Gujarat High Court in Company Petition No.157 of 2000 passed an order dated 10.03.2003 winding up the defendant company and appointing the Official Liquidator. Earlier, this Court (S. Radhakrishnan, J.) had passed an order in Chamber Summons No.1188 of 2003 directing the Official Liquidator to give inspection.
Issues
Whether the plaintiff is entitled to inspection of court records in a suit where the defendant company has been wound up and the Official Liquidator has been appointed.
Whether the Official Liquidator can be directed to give inspection of the suit papers to the plaintiff.
Submissions/Arguments
Plaintiff argued that he is a party to the suit and entitled to inspect the court records.
Defendants (including Official Liquidator) did not oppose the inspection.
Ratio Decidendi
A party to a suit has a right to inspect the court records, and the Official Liquidator, who is in control of the defendant company's records after winding up, must facilitate such inspection to enable the plaintiff to pursue his claim.
Judgment Excerpts
The present Chamber Summons has been taken out for the order and direction against defendant no.4 to give inspection of the complete papers, records and proceedings in the aforesaid suit.
The suit has been filed interalia for the recovery of sum of Rs.1,53,190/- being amount due and payable by the company to the plaintiff.
In view of the order of winding up and the appointment of Official Liquidator the plaintiff took out chamber summons being chamber summons no.1188 of 2003 and by an order passed by this Court (S.Radhakrishnan, J.) the Official Liquidator was directed to give inspection of the suit papers.
Procedural History
Suit No.1738 of 1979 was filed by the plaintiff against the defendant company for recovery of dues. The defendant company was subsequently wound up by the Gujarat High Court in Company Petition No.157 of 2000 on 10.03.2003, and the Official Liquidator was appointed. The plaintiff then took out Chamber Summons No.1188 of 2003, which was allowed by this Court (S. Radhakrishnan, J.) directing the Official Liquidator to give inspection. The present Chamber Summons No.1269 of 2004 was taken out for a similar direction, which was allowed by this judgment.
Acts & Sections
- Companies Act, 1956: 434
- Code of Civil Procedure, 1908 (CPC): Order XI Rule 14
