MOHAN LAL & ANR. vs GRAIN CHAMBER LTD., MUZAFFARNAGAR & ORS.

The Supreme Court held that the notification under the Sugar (Futures & Options) Prohibition Order, 1949, did not render the outstanding transactions in 'futures' in gur void, as the resolution passed by the Board of Directors on March 14, 1949, was valid despite the subsequent disqualification of directors under Sections 861(1)(h) and 91-B of the Indian Companies Act, 1913. The Court found that the company could continue its business and that the substratum of the company was not destroyed by the notification. The appeal for winding up the company was dismissed.