SUPREME COURT OF INDIA
(From Punjab : ILR (1966) 1 Punj 617)
10th March 1966
K. SUBBA RAO AND RAMASWAMI, JJ.
M/s. Ram Chand and Sons Sugar Mills Private Ltd., Barabanki (U. P.), Appellants
Versus
Kanhayalal Bhargava and others, Respondents.
Civil Appeal No. 166 of 1966
Advocates appeared
M/s. S. N. Andley, Rameshwar Nath and Mahinder Narain, Advocates of M/s. Rajinder Narain and Co., for Appellants; M/s. A. K. Sen and B. Sen, Senior Advocates, (M/s. B. P. Maheshwari, P. D. Bhargava and M. S. Narasimhan, Advocates, with them), for Respondents.
-Rules 1,2 and 3 of Order XXIX of the Code use the words “any director”. Under Rule 1 thereof a director who is able to depose the facts of the case may sign and verify the pleadings; under Rule 2, a summons may be served upon any director; and under Rule 3 any director who may be able to answer material questions relating to the suit may be required to appear personally before the Court. The adjective “any” indicates that any one of the directors with the requisite qualifications, prescribed by Rules 1, 2 and 3 can perform the functions laid down in each of the rules respectively. One can visualize a situation where a director who signed and verified the pleadings may not be in a position to answer certain material questions relating to the suit. If so, there is no reason why the director who may be able to answer such material questions is excluded, from the scope of this Rule 3. Such an interpretation will defeat the purpose of the said rule. Therefore “any director” in Rule 3 need not be the same director who has signed and verified a pleading or on whom summons has been served. He can be any of the directors who will be in a position to answer material questions relating to the suit – M/s. Ram Chand and Sons Sugar Mills Private Ltd. v. Kakayalal Bhargava,
Key Points: - "Any director" refers to any one of the directors with requisite qualifications under Rules 1, 2 and 3, and need not be the same director who signed the pleading or was served summons (!) (!) (!) (!) . - The Court can require any qualified director to appear personally to answer material questions, regardless of who signed or was served (!) . - If a director defaults after being properly ordered to appear, the Court may exercise inherent power under Section 151 to make a suitable order, including striking off the defence (!) (!) (!) .
Judgement
SUBBA RAO, J. : This appeal by special leave is directed against the order of the Punjab High Court confirming that of the Subordinate Judge, Delhi, striking out the defence of the appellant under S. 151 of the Code of Civil Procedure, hereinafter called the Code.
2. Kanhaya Lal Bhargava, the 1st respondent, filed a suit on April 27, 1962, in the Court of the Subordinate Judge, First Class, Delhi, against Messrs Ram Chand and Sons Sugar Mills Private Limited, the appellant, and one Ram Sarup for the recovery of a sum of Rs. 45,112.94. Pending the suit, on October 27, 1964, the 1st respondent filed an application in the said Court under O. XI, R. 21 of the Code, read with O. XXIX. R. 3, thereof for striking off the defence or in the alternative for directing Jugal Kishore, a director of the Appellant-company, to appear in Court on December 14, 1964. On December 3, 1964, the Court made an order therein directing the said Jugal Kishore to be present in Court on December 14, 1964, to answer material questions relating to the suit. The appellant took a number of adjournments to produce the said Jugal Kishore on the ground that the latter was ill. On February 3, 1965, the Court gave the appellant a final opportunity to produce the said Jugal Kishore. Even so, the appellant took two more adjournments to produce him, but did not do so on the ground that he was ill. Finally on February 25, 1965, the Court issued a notice to the 1st defendant, appellant herein, to show cause why his defence should not be struck off. On March 16, 1965, after hearing the arguments the Court held that Jugal Kishore had failed to comply with the orders of the Court and was persistent in his default in spite of chances given to him; and on that finding, it struck off the defence of the appellant. The High Court, on revision, held that Jugal Kishore did not appear in Court in spite of orders to that effect and that the learned Subordinate Judge had jurisdiction to strike out the defence of the appellant. It further negative the contention of the appellant that it was not in its power to compel Jugal Kishore was appear in Court on the ground that he was the director of the company and was under its control and, therefore, the appellant company could not be heard to say that one of the directors did not obey the orders of the Court. Hence the present appeal.
3. The argument of Mr. S. N. Andley, learned counsel for the appellant, may be briefly stated thus: The Code of Civil Procedure provides express power for a Court to strike out defence against a party under specified circumstances and, therefore, Section 151 thereof cannot be invoked to strike out the defence in other circumstances, for to do so will be to override the provisions of the Code. Order XXIX, R. 3 of the Code does not empower the Court to require the personal appearance of a director other than a director who signed and verified the pleading within the meaning of O. XXIX, R. 1, thereof.
4. Mr. Sen, learned counsel for the respondent, on the other hand, contended that the Court had ample jurisdiction to strike out the defence of a party if he was guilty of abuse of the process of the Court. In the instant case, he contended, Jugal Kishore, one of the permanent directors of the appellant-company had adopted a recalcitrant attitude in defying the orders of the Court to be present for interrogation and, therefore, the Subordinate Judge rightly, after giving every opportunity for him to be present, struck off the appellant s defence.
5. Section 151 of the Code reads:
"Nothing in this Code shall be deemed to limit or otherwise affect the inherent power of the Court to make such orders as may be necessary for the ends of justice or to prevent abuse of the process of the Court."
The words of the section appear to be rather wide. But the decisions of this Court, by construction, limited the scope of the said section. In Padam Sen v. State of Uttar Pradesh (1961) 1 SCR 884 at p. 887, the question raise
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