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Issues:
1. Competency of the appeal filed by the petitioner before the lower appellate court. 2. Authority to decide on filing appeals within the Corporation. 3. Interpretation of the articles and memorandum of association regarding decision-making authority. 4. Application of previous legal precedents in similar cases involving corporate decision-making. 5. Comparison of the present case with a decision under the Wakf Act regarding authority to file appeals. Detailed Analysis: 1. The revision petition challenged the order dismissing the appeal filed by the petitioner as incompetent. The appeal was against the withdrawal of a letter of intent for a dealership. The trial court had directed the maintenance of status quo. The issue was whether the appeal before the lower appellate court was competent. 2. The question revolved around whether Shri J. Sethi, an attorney of the Corporation, had the authority to file the appeal before the lower appellate court. The authority to decide on filing appeals was crucial, and it was determined by examining the memorandum and articles of association of the Corporation and the powers of attorney executed on its behalf. 3. The articles of association provided that the board of directors had the authority to decide on legal proceedings, including instituting or defending suits. The power was delegated to Sh. Mohinder Kumar Bagai, the marketing director, through a power of attorney, which was further delegated to Sh. J. Sethi. The delegation of authority was in line with the Corporation's rules and regulations, as outlined in the memorandum and articles of association. 4. Legal precedents were cited to support the delegation of authority within corporations for decision-making on legal matters. The court referred to a previous case where it was held that specific resolutions for each case were not necessary, and the manner of decision-making depended on the corporation's constitution and regulations. The decision emphasized that not every case required a separate resolution by the board of directors. 5. A comparison was made with a case under the Wakf Act, where it was held that the Wakf Board needed to take a decision for filing appeals, and the secretary alone could not make such decisions. However, this decision was distinguished from the present case involving a registered company governed by its own rules and regulations specified in the memorandum and articles of association. In conclusion, the revision petition was allowed, setting aside the order of the Additional District Judge and declaring the appeal filed in the lower appellate court as maintainable. The case was remanded for further proceedings, emphasizing the importance of adhering to the Corporation's internal decision-making processes as per its articles and memorandum of association.
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