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2007 (7) TMI 415 - HC - Companies LawCourts - Whether provisions of section 10 have application to suits for recovery of money filed by a company registered under Act
Issues:
Jurisdiction of Civil Court to entertain suits for recovery of money filed by a company registered under the Companies Act. Analysis: The judgment revolves around the issue of whether a Civil Court has jurisdiction to entertain suits for the recovery of money filed by a company registered under the Companies Act. The revision petitioner contended that the decree passed against them by the Civil Court is without jurisdiction as the Companies Act specifies that only the High Court or District Court concerned can entertain suits filed by a company. However, the court disagreed with this contention, stating that the Companies Act does not contain provisions related to the recovery of money lent to or borrowed from a company. Therefore, under Section 9 of the CPC, a Civil Court retains jurisdiction to entertain such suits. The court further emphasized that Section 10 of the Companies Act, which specifies the court having jurisdiction under the Act, must be read in conjunction with other provisions related to winding up of a company. The matters dealt with by the court under the Companies Act primarily pertain to winding up procedures and are not related to recovery of money. As such, the jurisdiction of a Civil Court to entertain suits for recovery of money from debtors of a company registered under the Companies Act is not barred by the provisions of the Companies Act. Additionally, the court highlighted that objections related to the competence of a court, such as pecuniary limits of jurisdiction, must be raised at the earliest stage before issues are settled. Since the revision petitioner failed to raise such objections in the Trial Court, they cannot challenge the jurisdiction of the Trial Court at the stage of execution. Therefore, the executing court's decision to overrule the objections of the petitioner was deemed appropriate, as the provisions of Section 10 of the Companies Act do not apply to suits for the recovery of money filed by a company registered under the Act. Consequently, the revision was dismissed, and the executing court's decision was upheld.
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