Reviewed case brief
Barium Chemicals Ltd v Company Law Board
AIR 1966 SC 1648
The Supreme Court of India held that the Central Government's power to order investigation of a company's affairs must be based on objective satisfaction founded on reasonable grounds. The government cannot act on mere suspicion or extraneous considerations. While the satisfaction is that of the gov
- Court
- Supreme Court of India
- Year
- 1966
- Subjects
- Company Law
- Reviewed
- 2026-06-30
Rule established
The Central Government's power to order investigation of a company must be exercised on a reasonable basis; the satisfaction of the government must be objective and not based on mere suspicion.
Facts
Issues
Held
Ratio decidendi
How to use it in an exam
Editorial source
AIR 1966 SC 1648
Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.