JUDGMENT

Rajiv Shakdher, J. - Preface: -

1. This is an application filed under the provisions of Order VII Rule 11 read with Section 151 of the Code of Civil Procedure, 1908 [in short "CPC"] by defendant no. 8 i.e. Capital Land Builders Pvt. Ltd. [hereafter referred to as "Company"].

2. The Company seeks rejection of the plaint on the ground that it is barred by limitation and under the provisions of Order II Rule 2 read with Section 11 of the CPC.

3. The controversy both, in the suit and the captioned application, swirls around the ownership of 500 shares, which, the Company allotted to one, Ch. Bhram Prakash [hereafter referred to as "CBP"]. The Company, while not denying that 500 shares were issued to CBP and, thereafter, transferred to the plaintiff i.e. Shaheed Memorial Society [hereafter referred to as "Society"] takes the plea that, thenceforth, theses shares changed hands leaving the Society with no shares to its credit.

3.1 The Society claims otherwise and, hence, the dispute. Via this application, the Company seeks striking out of the suit albeit without a trial based on the legal provisions adverted to hereinabove.

3.2 Thus, the application is pivoted on the purported knowledge attributed to the Society concerning the alleged wrong.

4. Therefore, to appreciate the various submissions raised on behalf of the parties by their respective counsel qua this application, certain dates, events and facts are required to be noticed.

Background facts: -

5. The Company was incorporated on 19.06.1959 with an authorized capital of Rs. 1, 00,000/- divided into 1, 000 shares of Rs. 100/- each. The issue and paid-up capital was, however, restricted to Rs. 1, 500/- comprising 15 shares of Rs. 100/- each. Out of the 15 shares, 10 shares were issued to Smt. Satya Chowdhry, the wife of CBP, who was also the first Chief Minister of Delhi. The remaining 5 shares were issued to one, Shri Kishori Lal Sachdeva.

5.1 In course of time, the Company made further allotment of shares. Consequently, on 20.05.1962 the Company allotted 500 shares [as noticed above] in favour of CBP bearing distinctive numbers 61 to 560.

5.2 CBP, in turn, transferred the 500 shares allotted to him in favour of the Society. This is how the Society became the owner of the disputed 500 shares.

6. After the death of CBP on 11.08.1993, an uneasy calm prevailed between the Company and its significant [or so it thought] stakeholder i.e. the Society for about 4 years. In and about April 1997, there was a change of guard in the Society inasmuch as its secretary one, Mr. R.R. Kashyap demitted office and the same was taken up by Mr. Sidharth Chowdhry, one of the sons of the deceased CBP.

6.1 Mr. Sidharth Chowdhry''s enquiry about the original share certificates concerning shares held by the Society in the Company led him to inspect the record of the Registrar of Companies [in short "ROC"].

6.2 The inspection revealed a whole lot of deficiencies concerning compliance with the statutory provisions of the COMPANIES ACT , 1956 [in short "1956 Act"]. Inter alia, Mr. Sidharth Chowdhry discovered that the Company had not filed its annual returns and resultantly had failed to provide information about the register of members and the details of its shareholders.

6.3 This led to the institution of a company petition under Section 108 and 111(4) of the 1956 Act for rectification of the register of members. The peti