9911796707
TMI Blog1995 (12) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... n lieu of 500 shares of Rs. 100 each by the first defendant ; ( b )to grant a consequential mandatory injunction directing defendants Nos. 1 to 5 and 7 to issue 3,500 shares of Rs. 10 each to the plaintiff which are lying with them ; ( c )declaring that the plaintiff is entitled to 7,812 shares of Rs. 10 each under the promoters quota while the public issue was made by the first defendant in the year, 1994 ; ( d )to grant a consequential mandatory injunction directing defendants Nos. 1 to 4 and 7 to issue 7,812 shares of Rs. 10 each at par to the plaintiff with all the consequential benefits ; ( e )for recovery of Rs. 20,000 from defendants Nos. 1 to 4 and 7 being the dividends payable by the first defendant to the plaintiff on her shares of 7,812 ; ( f )for recovery of Rs. 4,55,000 from defendants Nos. 1 to 4 and 7 as damages for their inaction and delay in sending the split shares in time when demanded by the plaintiff and ( g )to grant a mandatory injunction directing to issue to the plaintiff future rights, bonus issues and dividends as and when declared by the first defendant." During the pendency of the suit, she had also filed an application for appointment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces in the district. (2) The Central Government may, by notification in the Official Gazette and subject to such restrictions, limitations and conditions as it thinks fit, empower any District Court to exercise all or any of the jurisdiction conferred by this Act upon the court, not being the jurisdiction conferred ( a )in respect of companies generally, by sections 237, 391, 394, 395 and 397 to 407, both inclusive ; ( b )in respect of companies with a paid-up share capital of not less than one lakh of rupees by Part VII (sections 425 to 560) and the other provisions of this Act relating to the winding up of companies. (3) For the purposes of jurisdiction to wind up companies, the expression 'registered office' means the place which has longest been the registered office of the company during the six months immediately preceding the presentation of the petition for winding up." Learned counsel also submitted that the registered office of the first defendant-company is situated at Madras and, therefore, the court of the Subordinate Judge at Ramachandrapuram, East Godavari District in the State of Andhra Pradesh has no jurisdiction to try the suit. It was also contended by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is contested is a suit of a civil nature, notwithstanding that such right may depend entirely on the decision of questions as to religious rites or ceremonies. Explanation II. For the purposes of this section, it is immaterial whether or not any fees are attached to the office referred to in Explanation I or whether or not such office is attached to a particular place." With this provision on record; learned counsel for the respondent No. 1 herein submitted that it must be shown that the jurisdiction of the civil court is specifically barred by special enactment failing which it must be held that every civil court has jurisdiction to try and entertain the suit, which is of a civil nature. Learned counsel also relied upon section 20 of the Civil Procedure Code, 1908. Section 20 of the Civil Procedure Code, reads as follows : "Subject to the limitations aforesaid, every suit shall be instituted in a court within the local limits of whose jurisdiction ( a )the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain ; or ( b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (2) of section 10. The Central Government has an authority to confer the jurisdiction by issuing a notification in the Official Gazette empowering the District Court to exercise all or any of the jurisdiction conferred by this Act upon the court. By reading sub-section (2) of section 10 of the Companies Act, it is evident that while conferring the jurisdiction on any particular court, the Central Government is bound to confer the jurisdiction on a District Court which is subordinate to the High Court and the second fact which the Central Government has to take into account is that such District Court is housed or located in a place over which the High Court exercises the territorial, jurisdiction. To put it in plain words, the Central Government will confer the jurisdiction to any of the District Court, which is subordinate to the High Court at Madras, because of the fact that the registered office of the first defendant company is situated at Madras and no other court will have jurisdiction to entertain the suit or proceedings or petition, which are not entertained by the High Court of Judicature at Madras. Learned counsel for the plaintiff first respondent herein gave emphas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned judge held in the aforesaid ruling that the subjects which are not specifically dealt with by the High Court, the civil court had jurisdiction to entertain those subjects. The facts in the above case are totally different from the facts involved in the present case. Learned counsel for the plaintiff first respondent herein tried to take the help of section 20 of the Civil Procedure Code, and submitted that the court of the Subordinate Judge at Ramachandrapuram has got jurisdiction to entertain the suit as per clause ( c ) of section 20 of the Civil Procedure Code. According to the submissions made by him the cause of action arose within the jurisdiction of the court of the Subordinate Judge at Ramachandrapuram and, therefore, the court of the Subordinate Judge at Ramachandrapuram has jurisdiction to try the suit of present nature. I proceed to scrutinise the submissions made by learned counsel for the plaintiff first respondent herein as to whether the cause of action arose for the plaintiff first respondent herein within the territorial jurisdiction of the court of the Subordinate Judge at Ramachandrapuram. It is settled law that the jurisdiction on the court has to be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d office of the company is situated at Madras. Now, we go back to section 10 of the Companies Act. Especially subsection (2) of section 10 of the said Act which specifically lays down that the Central Government has to confer the jurisdiction to the District Court or District Courts by issuing a notification in the Official Gazette. But in the whole pleadings, the plaintiff first respondent herein has never stated that the court at Ramachandrapuram was conferred with such power by the Central Government by issuing a notification in the Official Gazette. On that count also the civil court at Ramachandrapuram has no jurisdiction to entertain the suit of the present nature. Considering the facts and the law, which is discussed above, this court holds that the Sub-Court at Ramachandrapuram has no jurisdiction to entertain the suit of the present nature, Therefore, this court by invoking the jurisdiction under article 227 of the Constitution of India holds that it is a case of error of jurisdiction by the Sub-Court at Ramachandrapuram and, therefore, this court sets aside the order of appointment of Advocate-Commissioner. This court further directs the court of the Subordinate Judge ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
