The Companies Act, 1913 (predecessor to the Companies Act, 2013) Hansraj Gupta v. Official Liquidators of the Dehra Dun-Mussoorie Electric Tramway Co. Ltd. AIR 1933 PC 63 states that
In the case of Hansraj Gupta v. Official Liquidators, they talked about a law called the Companies Act from 1913. This act is like a set of rules that companies need to follow for how they run and manage their business.
In this case, the Companies Act from 1913 had rules about what happens when a company is having financial problems and needs to be closed down or ‘liquidated’. ‘Liquidation’ means selling off the company’s things to pay back the money they owe.
The court in this case used the rules from the Companies Act of 1913 to make sure that the company and Hansraj Gupta followed the right steps during the liquidation process. It’s like making sure everyone plays by the same rules during this important process of closing down a company.