M.C Jain, J.:— The petitioner has moved this petition for seeking direction under Sec. 163 read with Sec. 209(4) of the Companies Act, 1956 (hereinafter referred to as “the Act”), for allowing immediate inspection of the record specified in these provisions. The petitioner is an existing Director and a share-holder of the Lake Palace Hotels and Motels Pvt. Ltd. and in his capacity as such has sought this direction. This Court issued notices to the respondents. The respondents have appeared before this Court, but have not submitted any reply to the petition and the learned counsel for the respondents have raised certain contentions before me with regard to the maintainability of the petition.
2. Mr. L.R Mehta, learned counsel for the respondents No. 1 and 2 and Mr. N.N Mathur, learned counsel for respondent No. 3, have submitted that for seeking any relief under Sec. 163 as well as under Sec. 209(4) of the Act, this Court has no jurisdiction to entertain this petition. Reference has been made to the Notification issued under sub-section (2) of Sec. 10 of the Act. Sec. 10 of the Act provides for jurisdiction of the Courts to entertain petitions and sub-section (2) empowers the Central Government to confer any powers on any District Court to exercise all or any of the jurisdiction conferred by the Act upon the High Court. The Central Government has issued a Notification G.S.R 663 dated 29.5.1959 in which the jurisdiction for entertaining the petition for inspection under Sec. 163 of the Act has been conferred on the District Courts. The Notification under Sec. 10, does not cover Sec. 209 of the Act. Under sub-section (1) of Sec. 10, general jurisdiction under the Act has been conferred on the High Court. Clause (a) of sub-section (1) of Sec. 10 provides that the High Court shall have jurisdiction, except to the extent to which jurisdiction has been conferred on any District Courts or District Courts subordinate to that High Court in pursuance of sub-section (2). Admittedly, there is no Notification issued by the Central Government conferring any power on the District Court with regard to seeking any relief under Sec. 209(4) of the Act. It would be an independent question to examine as to whether right under Sec. 209(4) of the Act, is an enforceable right. So far as the question of jurisdiction is concerned, all matters arising under the Act can be heard by this Court, which are not covered under the Notification issued under sub-section (2) of Sec. 10 of the Act by the Central Government. Thus in my opinion, in the light of the Notification, this Court has no jurisdiction to entertain the petition under Sec. 163 of the Act, but if any petition lies under Sec. 209 of the Act, such an application would lie only to this Court.
3. Now it remains to be examined whether any application for inspection of the documents specified in sub-section (4) of Sec. 209 of the Act, lies or not? sub-section (4) of Sec. 209 of the Act provides that books of account and other books and papers, shall be open to inspection by any director during business hours. A bare perusal of the provision shows that it confers a right of inspection on the directions of all books of account and other books and papers. The question arises whether such a right is enforceable by this Court. It has been urged before me by the learned counsel for the respondents that Sec. 209 does not contain any provision conferring any power on this Court to make any order directing the company to allow inspection to any director. In the absence of such a provision under Sec. 209, the right of inspection is not enforceable. It was pointed out that the Act embodies several provisions like Sections 144(4), 163, 196, 304(2) and (3), 307(9), where specific provisions have been made conferring a power on the court to make an order directing inspection of the contemplated documents in the various provisions. The absence of such a provision under Sec. 209 should be taken to mean that the Legislature did not intend to confer any such right, which may be enforceable. It has been pointed out that the breach of sub-section (4) of Sec. 209 has been made punishable under sub-section (5) by the persons, who have been specified in sub-section (6). So the only remedy in sub-section (4) of Sec. 209 of the Act is contravened, is to launch prosecution of the person, who has contravened the provision of sub-section (4) of Sec. 209.
4. I have carefully considered the above submissions. In my opinion, it cannot be conceived that where a statute confers a right, then the right would remain unenforceable. It is one thing that penal proceedings may be taken. It is entirely different that without initiating penal proceedings, the right is sought to be enforced. It is the look out of the Director only, to launch the prosecution or to seek enforcement of his right by initiating the proceedings before the Court, which has jurisdiction to entertain such a petition. The general maxim is “Ubi jus ibi remedium” (where there is a right, there is a remedy). Here sub-sec. (4) of Sec. 209 of the Act confers a statutory right of inspection and the court, which has jurisdiction under the Act, in my opinion, possesses powers to enforce that statutory right. It has been urged that the Company Court Rules do not envisage any such petition and what petitions lie, are specified. Petitions provided under the Rules are exhaustive. I am unable to agree with this submission, as well. As already stated, when sub-sec. (4) of Sec. 209 of the Act envisages conferment of right of inspection on the Director, then the Director can seek a remedy by moving a petition to this Court. Thus, I hold that the petition is maintainable under Sec. 209(4) of the Act and the Company is under an obligation to allow the inspection to the petitioner of all the books of account and other books and papers.
5. Accordingly, the petition is partly allowed. The petition under Sec. 163 of the Act is dismissed as not maintainable. However, the petitioner under Sec. 209(4) of the Act is allowed and the respondents are directed to allow the petitioner to inspect all hooks of account and other books and papers during business hours within a week from today.