9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 293 - HC - Companies LawSuit for declaration and permanent injunction - time limitation - rejection of the plaint on the ground that the same was barred by law - Order XXIII Rule 1 of the Code of Civil Procedure - Section 58 of the Companies Act - HELD THAT - In the instant case it is not the plaintiffs allegation that the company had refused to register or transfer shares in favour of the plaintiffs. Thus, the decisions relied upon by Mr. Mitra in ADESH KAUR VERSUS EICHER MOTORS LIMITED AND ORS. 2018 (8) TMI 836 - SUPREME COURT and SHASHI PRAKASH KHEMKA (DEAD) THROUGH LRS. AND ANOTHER VERSUS NEPC MICON (NOW CALLED NEPC INDIA LTD.) AND OTHERS 2019 (2) TMI 971 - SUPREME COURT are distinguishable on facts. The next point as to whether the decision of the Company Law Board would prevent the Civil Court from deciding the issues relating to the relief claimed with regard to the family arrangement, in my opinion, the proceedings and the findings of the Company Law Board will have to be gone into at the time of trial as a separate issue. Similarly limitation being a question of law and fact unless there is evidence before the Court, the issue cannot be decided. Reading of the plaint in this case simpliciter could not persuade the Civil Court to do decide the suit was barred at its initial stage. Revision dismissed.
Issues:
1. Rejection of plaint under Order VII Rule 11 of the Code of Civil Procedure. 2. Suit barred under Section 430 of the Companies Act, 2013 read with Rule 70(5a) of the National Company Law Tribunal Rules, 2016. 3. Suit barred under Article 93 of the Limitation Act, 1963. 4. Jurisdiction of Civil Court in relation to family arrangement and testamentary disposition. 5. Application of Section 59 of the Companies Act, 2013. 6. Interpretation of Section 58 of the Companies Act, 2013. 7. Impact of decisions of the Company Law Board on Civil Court proceedings. 8. Consideration of limitation as a question of law and fact. Analysis: 1. The petitioners filed an application under Order VII Rule 11 of the Code of Civil Procedure seeking rejection of the plaint, contending that it was barred by law. The application was rejected by the learned Court below, and an application under Order XXIII Rule 1 of the Code of Civil Procedure filed by the plaintiffs was allowed. The Court found that the abandonment of a claim for rectification did not restrict the jurisdiction of the Civil Court based on the averments in the plaint and the prayers therein. 2. The suit was alleged to be barred under Section 430 of the Companies Act, 2013 and Rule 70(5a) of the National Company Law Tribunal Rules, 2016. The petitioners argued that the suit fell under Section 58 of the Companies Act, 2013, and certain prayers in the plaint were covered by the first prayer. However, the Court found that the suit did not involve a refusal by the company to register or transfer shares, distinguishing it from precedents cited by the petitioners. 3. The contention regarding the suit being barred under Article 93 of the Limitation Act, 1963 was raised, asserting that the suit should have been filed within three years from the date of knowledge of the transfer of shares. The Court considered this argument along with the timing of the probate suit filed by the petitioners and the impact on the testamentary disposition claimed in the instant suit. 4. The Court deliberated on the jurisdiction of the Civil Court concerning the family arrangement and testamentary disposition issues, emphasizing that these matters would need to be addressed during the trial based on evidence presented. The impact of the Company Law Board's decisions on the Civil Court proceedings was noted, indicating that these findings would be examined separately during the trial. 5. The application of Section 59 of the Companies Act, 2013 was considered, with the Court observing that the plaintiffs had abandoned the claim covered by this section by filing an application under Order XXIII Rule 1 of the Code of Civil Procedure, which was allowed. 6. The interpretation of Section 58 of the Companies Act, 2013 was crucial in the judgment, as the Court analyzed whether the company's refusal to register or transfer shares was a factor in the present case. The Court distinguished relevant precedents and concluded that the decisions cited by the petitioners were not directly applicable to the circumstances of this case. 7. The Court highlighted the importance of considering limitations as both a question of law and fact, emphasizing the need for evidence before making a decision. The Court upheld the decision of the learned Court below to reject the application under Order VII Rule 11, citing reasons and judicial authorities in support of the decision. 8. Ultimately, the revisional application was dismissed, and no costs were awarded. The Court found no reason to interfere with the decision of the lower Court, which had thoroughly considered the arguments and legal aspects presented by both parties.
|
