Karnataka High Court
Judges : K.SREEDHAR RAO
M/S.WASAVA TYRES A PARTNERSHIP FIRM - Appellant
Versus
PRINTERS (MYSORE) LIMITED - Respondent
R. A. F. 1324 Of 2004
Decided On : 11/20/2006
Advocates Appeared :
ANAND, RAVI B.NAIK, S.V.SHASTRI, SUNDARASWAMY RAMDAS
T. P. Act - Tenancy - Sec. 106, Sec. 43-A, Sec. 21, Sec. 23, Order 29 CPC - The court confirmed the order of eviction and granted time for vacating the premises. Damages for use and occupation were fixed at Rs. 5/- per square feet and were to be paid regularly. The suit filed by the Managing Director was deemed to be within his authority as it was for the benefit of the company.
Fact of the Case:
The respondent filed a suit against the appellant-tenants for possession and damages/mesne profits after terminating the tenancy. The trial court granted the suit, directing the tenants to vacate and pay damages at the rate of Rs. 5/- to Rs. 8/- per square feet. The appellant-tenants sought additional time for vacating the premises.
Finding of the Court:
The court confirmed the order of eviction and granted time till the end of March 2008 for the appellant-tenants to vacate. Damages for use and occupation were fixed at Rs. 5/- per square feet and were to be paid regularly. In case of default, the eviction order would become executable.
Issues: Validity of the suit filed by the Managing Director without proper authorization and the request for additional time for vacating the premises.
Ratio Decidendi: The suit filed by the Managing Director was deemed to be within his authority as it was for the benefit of the company. The court granted time for vacating the premises and fixed the damages for use and occupation.
Final Decision: The court confirmed the order of eviction, granted time for vacating the premises, and fixed the damages for use and occupation.
( 2 ) THE respondent/plaintiff filed the suit against the appellant-tenants for possession and seek damages/mesne profits for the period after termination of the tenancy. The plaintiff before filing suit terminated the tenancy by issuing notice U/s. 106 of T. P. Act.
( 3 ) THE Trial Court allowed the suit granted decree directing the tenants to vacate and deliver vacant possession of the tenanted premises. The court also directed payment of damages at the rate varying between Rs. 5/- to Rs. 8/- per square feet payable by each of the tenant for use and occupation of the premises from the date of termination of tenancy. The trial court further granted interest at the rate of 12% on the damages if paid within the certain time and in default to pay enhanced interest at 18%.
( 4 ) THE material facts disclose that the plaintiff/tenant is a private limited company. The provisions of Sec. 43-A (la) are extracted hereunder for convenient reference:
[ (1 A) Without prejudice to the provisions of sub-section ( 1), where the average annual turn over of a private company, whether in existence at the commencement of the companies ( Amendment) Act 1974, or incorporated thereafter, is not, during the relevant period,[less than such amount as may be prescribed], the private company shall, irrespective of its paid-up share capital,become, on and from the expiry of a period of three months from the average annual turn over, a public company by virtue of this sub-section: provided that even after the private company has so become a public company, its articles of association may include provisions relating to the matters specified in clause (iii) or sub section ( 1) of section 3 and the number of its members may be, or may at any time be reduced, below seven. "
( 5 ) THE provisions of Section 21 and 23 of the Company's Act are extracted hereunder:
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06-03-2008
21. Change of name by company.- A company ma, by special resolution and with the approval of the Central Government signified in writing, change its name: [provided that no such approval shall be required where the only change in the name of a company is the addition thereto or, as the case may be, the deletion therefrom, of the word "private", consequent on the conversion in accordance with the provisions of this Act of a public company into a private company or of a private company into a public company. ]
23. Registration of change of name and effect thereof.- (1)Where as company changes its name in pursuance of section 21 or 22,the Registrar shall enter the new name on the register in the place of the former name and shall issue a fresh certificate of incorporation with the necessary alterations embodied herein; and the change of name shall be complete and effective only on the issue of such a certificate. (2) The registrar shall also make the necessary alteration in the memorandum of association of the company. (3) The change of name shall not effect any rights or obligations, of the company, or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the company by its former name may be continued by or against the company by its new name. "
(6) THE appellant filed application to produce additional documents to prove that the turn over of the plaintiff's company has exceeded Rs. 1 crore, therefore it had become a public limited company by legal fiction in view of the provisions contained in Section 43 A. The documentary material produced are the genuine and authentic material. Hence with the consent of the respondent counsel the documents are received as additional evidence which clinchingly establish that the plaintiff company had become a public limited company by legal fiction on account of the provisions contained in section 43a.
(7) THE consequences of plaintiff's company becoming
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