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Unit 1: Nature of the Companies Act, 1956

Jurisdiction of Courts Notes

As regards to the jurisdiction of Courts, section 10 provides as follows:
1. The court having jurisdiction under this Act shall be:
(a) The High Court having jurisdiction in relation to the place at which the registered
office of the company concerned is situated, except to the extent to which jurisdiction
has been conferred on any District Court or District Court subordinate to that High
Court in pursuance of (2) below; and
(b) Where jurisdiction has been so conferred, the District Court in regard to matters
falling within the scope of the jurisdiction conferred, in respect of companies having
their registered offices in the district.
2. The Central Government may, by notification in the Official Gazette and subject to such
restrictions, limitations and conditions as it thinks fit, empower any District Court to
exercise all or any of the jurisdiction conferred by this Act upon the court, not being the
jurisdiction conferred by this Act upon the court:
(a) In respect of companies generally, by Sections 237, 391, 394, 395 and 397 to 407, both
inclusive;

(b) In respect of companies with a paid up share capital of not less than 1 lakh of rupees,
by Part VII (Sections 425 to 560) and the other provisions of this Act relating to the
winding up of companies.
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.

Self Assessment

6. What is the correct sequence of the following assignments?
(i) Internal control (ii) Test check
(iii) Internal check (iv) Statutory audit
Select the correct answer using the codes given below:
Codes
(a) (i), (ii), (iii), (iv) (b) (iii), (i), (iv), (ii)

(c) (iii), (i), (ii), (iv) (d) (iv), (iii), (ii), (i)
7. Which of the following conditions must be satisfied in a claim for loss by fire?
(i) There must be actual fire.
(ii) Fire must be accidental.
(iii) Cause of fire must be ascertainable.
(iv) The goods must have been destroyed, not damaged by fire.
Select the correct answer using the codes given below:

Codes
(a) (i) and (ii) (b) (i) and (iii)
(c) (ii) and (iii) (d) (iii) and (iv)

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