A plaint can be rejected under Order 7 Rule 11 of the Code of Civil Procedure only if it does not disclose a cause of action.

( 1 ) DEFENDANT has moved this application under Order 7 Rule 11 of the Code of Civil Procedure seeking rejection of the plaint or dismissal of the suit summarily as disclosing no cause of action.

( 2 ) THE plaintiff claims that it is a private limited company duly registered under the Companies Act with the Registrar of Companies and Sanjay Gupta is the Secretary of defendant who is duly authorised to sign, verify and institute the suit by virtue of a resolution dated 24. 6. 1989 passed by the Board of Directors in the meeting held on that date. It is claimed that Sanjeev Gupta is well conversant with the facts and can depose about them. It is alleged that defendant being the owner of the suit property agreed to sell, transfer and convey the same to the plaintiff vide agreement to sell dated 25. 10. 1988 for a consideration of Rs. 43. 50 lakhs. On the execution of the agreement a sum of Rs. 9. 50 was paid to the defendant. After making elaborate allegations, the plaintiff has claimed a decree for specific performance of agreement to sell directing the defendant to execute sale deed with respect to the suit property and to hand over vacant and peaceful possession to the plaintiff. Numerous other reliefs have also been claimed for which separate averments have been made.

( 3 ) THE suit was instituted on 4. 7. 1989. Defendant filed written statement. On 18. 4. 1990 the defendant was permitted to amend the written statement. The defendant by way of amendment sought the raising of an objection that the suit has not been properly instituted and the person filing, signing and verifying the plaint is not authorised to do so. In addition other amendments were also sought. After the plaintiff had filed replication to the amended written statement, an application (Cri. M. 304/90) was moved by the defendant under Section 340 of the Code of Criminal Procedure alleging that the two directors of the plaintiff, namely, Pramod Gupta and Rajiv Gupta, including the alleged Secretary Sanjay Gupta have hatched a criminal conspiracy to foist a false claim and have sworn a false affidavit. Prayer is made to hold an enquiry in respect of commission of offence alleged to have committed by them. This application was filed on 15. 10. 1990. Time was allowed to the plaintiff to file reply. On 1st February, 1991 when the case was taken up by the Deputy Registrar, final opportunity was granted to the plaintiffto file reply within three weeks. Defendant feeling aggrieved against this order preferred OA 4/91 seeking to challenge the order of the Deputy Registrar contending that final opportunity ought not to have been granted to the plaintiff to file reply to the said application. In the meanwhile, defendant filed IA 473/91 under Order 7 Rule 11 of the Code of Civil Procedure seeking rejection of the plaint.

( 4 ) THE grievance of me defendant in nutshell is that sufficient time having been granted to the plaintiff company, it has failed to file its reply to the application moved under Section 340 of the Code of Criminal Procedure and, thus, the allegations made therein are presumed and are also deemed to have been taken as correct and, thus, an inference is to be drawn that there was a fake appointment of the alleged Secretary and the two resolutions dated 1. 10. 1988 and 24. 6. 1989 are also fake. Suit cannot be proceeded or be allowed to be prosecuted by the plaintiff company since Sanjeev Gupta is neither the Secretary nor has any right to institute the suit. The applications are vehemently opposed by the plaintiff.

( 5 ) WHEN the case was taken up for hearing arguments on these applications, the defendant s attorney stated that he has not to make any oral submissions and whatever he wanted to say has been stated by him in the written statement placed on the record. Learned counsel for the plaintiff also submitted that on perusal of the record, the applications may be disposed of.

( 6 ) I have gone through the entire record.

( 7 ) THE defen