IN THE HIGH COURT OF GAUHATI (SHILLONG BENCH)
H. Baruah, J.
Suresh Singh and Ors. – Appellants
Vs.
Shillong Club Ltd. – Respondent
Decided On: 29.05.2009
Constitution of India, 1950 – Article 226 and 227 – Civil Procedure Code, 1908 - Section 115 - Order 39 - Rule 1 and 2 - Companies Act, 1956 - Section 25 , 83(a) , 10GB and 397 - Requisition letter - Permanent injunction - Praying for a decree for reliefs as claimed - Petitioners herein are permanent Members of respondent-company, namely Club Ltd., a registered company incorporated under Section 25 of Companies Act, 1956 affairs of the company as aforesaid is vested in Managing Committee consisting of seven members who are deemed to be directors of said company within meaning of Section 83(a) of Act - Legal relationship between petitioners and respondent-company is governed by provisions of Act and articles and memorandum of association of respondent-company - Learned Assistant District Judge having been filed this application without issuing notice to petitioners-opposite parties vide impugned order granted ad-interim injunction restraining and preventing petitioners from exercising their rights under Article 54 of articles of Association of respondent-company - Petitioners being aggrieved thereby have approached this Court by present petition under Article 227 of constitution of India – Held, In case (supra) constitution bench of the court further held that reasons for resolution and issues stated by petitioners in requisition letter are not open to judicial review or judicial determination - According to same situation prevailed over in present case at hand - Petitioners and others being permanent members of respondent-company have right to requisition for EGM by virtue of Article 54 of articles of Association of Company - Therefore such right under Article 54 of articles of association cannot be restrained by issuing an injunction - Court finds it appropriate to dismiss this petition same being not maintainable under Article 227 of the Constitution in view of alternative remedy available under CPC - However, petitioners will be at liberty to resort to alternative remedy available under code, if so advised - Petitioners will also be at liberty to raise question of maintainability of suit and application, if so advised - Civil revision petition stands disposed of.
H. Baruah, J.
1. Challenging the legality and propriety of order dated 12.5.2009 passed by the learned Asstt. District Judge, Shillong in Misc. Case No. 13(H) of 2009 arising out of Title Suit No. 8(H) of 2009, this civil revision under Article 227 of the constitution has been preferred by the petitioners, who are permanent Members of the respondent-company.
2. The petitioners herein are the permanent Members of the respondent-company, namely, Shillong Club Ltd., a registered company incorporated under Section 25 of the Companies Act, 1956 ('the Act'). The affairs of the company as aforesaid is vested in the Managing Committee consisting of seven members who are deemed to be the directors of the said company within the meaning of Section 83(a) of the Act. The legal relationship between the petitioners and the respondent-company is governed by the provisions of the Act and the articles and memorandum of association of the respondent-company. The petitioners and other members of the respondent-company submitted a requisition dated 4.5.2009 for convening an extraordinary general meeting ('EGM') per provision of the Article 54 of the articles of association read with provision of the Act for discussion of the matters incorporated therein. When the said requisition was before the Executive Committee, he respondent-company instituted a Title Suit No. 8(H) of 2009 in the court of Asstt. District Judge, Shillong praying for a decree for the reliefs as claimed therein along with an application under Order 39 Rule 1 and 2 of CPC for grant of ad-interim injunction against the petitioners. The learned Assistant District Judge, Shillong having been filed this application, without issuing notice to the petitioners-opposite parties, vide impugned order granted ad-interim injunction restraining and preventing the petitioners from exercising their rights under Article 54 of the articles of the Association of the respondent-company. The petitioners being aggrieved thereby have approached this Court by the present petition under Article 227 of the constitution of India.
3. Heard Mr. H.S. Thangkhiew, learned Counsel for the petitioners. And also heard Mr. S. Sen, learned Counsel for the respondent-company at length.
4. Mr. H.S. Thangkhiew, learned Counsel for the petitioners at the very out set of his argument submitted that civil courts jurisdiction in entertaining the affairs of the company is barred by Section10GB of the Act, therefore, the impugned order passed by the learned Assistant District Judge, Shillong is without jurisdiction and cannot sustain in law and in that view of the matter this Court has the jurisdiction to set aside and quash the aforesaid impugned order by exercising power of superintendence under Article 227 of the Constitution of India. Further Mr. H.S. Thangkhiew submitted that the petitioners herein being the permanent members of the respondent-company along with others have unfettered rights to requisition for convention of an EGM. Pursuant to the provisions of Article 54 of the articles of the association, this right being the internal affairs of the company is not liable to be challenged in a court of law. For resolving such dispute and other disputes among the members and the Directors of the company provisions have been provided in the Companies Act itself. Since Section 10GB of the Act oust the jurisdiction of the civil court from entertaining any suit or proceeding in respect of any matter, it is within the domain of the tribunal where such jurisdiction lies. Where no such tribunal is in existence the jurisdiction lies with the company bench of the High Court, but the respondent-company without approaching such tribunal or the company bench of the High Court approached the court of Assistant District Judge, Shillong by filing a title suit seeking reliefs contained therein along with the application under Order 39 Rule 1 and2 of CPC. Mr. H.S. Thangkhiew, therefore, submitted that when Section 10G of the Act ou
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