Supreme Court of India · 1966-05-04
THE BARIUM CHEMICALS LTD. AND ANR. vs THE COMPANY LAW BOARD AND OTHERS
- Citation / case number
- SC 1966/60061
- Court
- Supreme Court of India
- Petitioner
- THE BARIUM CHEMICALS LTD. AND ANR.
- Respondent
- THE COMPANY LAW BOARD AND OTHERS
- Author
- SARKAR, A.K. (),HIDAYATULLAH, M.,MUDHOLKARR.,BACHAWAT, R.S.,SHELATM.
- Bench
- SARKAR, A.K. (CJ),HIDAYATULLAH, M.,MUDHOLKAR, J.R.,BACHAWAT, R.S.,SHELAT, J.M.
Judgment text excerpt
The Supreme Court examined the constitutionality of Section 237(b) of the Companies Act, 1956, in relation to Articles 14 and 19(1)(g) of the Constitution. The Court held that the Company Law Board's order to investigate the affairs of a company was valid as it was based on sufficient material indicating potential fraud and misconduct. The Court affirmed the powers of the Company Law Board under Section 10E and the procedural rules established, ruling that the order was not mala fide and upheld the investigation's legitimacy.