Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 1974 (3) TMI HC This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1974 (3) TMI 42 - HC - Companies Law

Issues:
1. Procedure to be followed when a petitioner dies during a legal proceeding.
2. Competency of legal representatives to continue the proceedings after the petitioner's death.
3. Application of Section 306 of the Indian Succession Act, 1925, in allowing legal heirs to prosecute or defend actions.
4. Requirement of a succession certificate for legal representatives to be impleaded in a case.
5. Whether the petition is still pending or has been consigned to the record room.

Analysis:
1. The judgment dealt with the application under Order 1, rule 10(2) read with Order 22, rules 2 and 3, and section 151 of the Code of Civil Procedure concerning the legal heirs of a deceased petitioner in a Company Petition. The petitioner had passed away during the proceedings, and the second petitioner decided not to pursue the case further. The court had initially consigned the petition to the record room due to the absence of any petitioner. The legal representatives of the deceased petitioner then moved an application to be impleaded as parties to the case, which was contested by the respondents. The court examined the procedure to be applied in such cases and compared it to an ordinary winding-up petition under the Companies Act, 1956.

2. The judgment discussed the competency of legal representatives to continue the proceedings after the petitioner's death. It referred to Section 306 of the Indian Succession Act, 1925, which allows the estate of a deceased person to prosecute or defend any action existing in favor of the deceased. The court held that the legal heirs of the deceased petitioner were competent to succeed to his estate and prosecute any claim he might have had. The court also addressed objections raised by the respondents regarding the competency of the legal representatives to continue the proceedings.

3. The judgment analyzed the requirement of a succession certificate for legal representatives to be impleaded in the case. It discussed the provisions of the Indian Succession Act, particularly Section 214, which deals with the passing of a decree in favor of a heir to a deceased person against a debtor. The court clarified that a succession certificate may not be necessary for impleading legal representatives in cases where the deceased's estate does not fall under Section 212 or 213 of the Act.

4. The court also examined whether the petition was still pending or had been consigned to the record room. It clarified that the petition had not been disposed of and was only consigned to the record room due to the absence of a petitioner. The court allowed the legal representatives to be impleaded and proceed with the petition, emphasizing that once someone is impleaded and willing to prosecute the petition, there is no impediment to the case being heard further. The judgment concluded by permitting the legal representatives to be brought on record in place of the deceased petitioner.

 

 

 

 

Quick Updates:Latest Updates