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TMI Blog1990 (9) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... r retail outlet dealership of H. S. diesel near village Mandhar and that withdrawal of the intent letter dated July 3, 1985, vide letter dated November 27, 1986, by defendant No. 2 was illegal and void and for a mandatory injunction directing the defendants to revalidate the letter dated July 3, 1985. Along with the suit, an application for an interim order was filed. The trial court on October 1, 1987, directed the defendants to maintain status quo till further orders. Against the aforesaid order, an appeal was taken to the Additional District Judge, Ambala, wherein an objection was taken to its maintainability, which resulted in the passing of the impugned order. In the revision petition, an application under Order 41, rule 27 of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain powers of the board. Sub-article (7) of article 148 refers to the subject of suits and it reads as under : "148(7). To institute, conduct, defend, compound, or abandon any legal proceedings by or against the company or its officers, or otherwise concerning the affairs of the company, and also to compound and allow time for payment or satisfaction of any debts due to, and of any claims or demands by or against the company, and to refer any differences to arbitration, and observe and perform any awards made thereon." The board of directors, thus, was the authority under the articles of association, as referred to above, to take a decision regarding institution or defending of suits. The power was delegated to Sh. Mohinder Kumar Bagai, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Mr. J. Sethi under such authority was, therefore, competent. This court in Pepsu Road Transport Corporation v. Kirat Mohinder Singh [1983] PLR 219, had held as under : "The resolution fully authorised the general manager to act on behalf of the petitioner in all the cases filed or to be filed by or against it. The passing of any specific resolution is not contemplated under the Act in each and every case. Moreover, it will depend upon the constitution of a corporation and the manner in which its functions are regulated by the State itself. There cannot be any universal rule that every corporation must act through resolutions passed by it in each and every case." Learned counsel for the respondents has referred to the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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