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2010 Supreme(P&H) 2499

2010(4) LAW HERALD (P&H) 2876
IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice Alok Singh
CR No. 7701 of 2009 (O&M)
Pawan Goel
v.
Basudev Garg & Ors.
{Decided on 31/08/2010}

Advocates:
For the Petitioner:Mr. A.S. Virk, Advocate.
For the Respondents:Mr. Anil Malhotra, Advocate.

IMPORTANT POINT
Rejection of Plaint--Bar to suit--None can be permitted to invoke both forums simultaneously--Even if Company Law Board as well as Civil Court both have jurisdiction over matter and plaintiff has opted for one forum, then he cannot be permitted to seek redressal from another forum during pendency.

Headnote:Civil Procedure Code, 1908, S.9--Civil Procedure Code, 1908, O.7, R.11--Rejection of Plaint--Bar to suit--Plaintiff has himself opted to approach Company Law Board challenging appointment, action and authority of defendant no.2 and 3 prior to filing of suit, again challenge to authority and action of defendants no.2 and 3 in a civil suit, is not permitted in view of implied bar under Section 9 CPC--None can be permitted to invoke both forums simultaneously--Even if Company Law Board as well as Civil Court both have jurisdiction over matter and plaintiff has opted for one forum, then he cannot be permitted to seek redressal form another forum during pendency of petition before earlier forum--In Company Petition authority of plaintiff alongwith three others to act as directors and to cast vote as directors, is under challenge--In Company Petition, plaintiff claiming himself as director of Company, has sought relief that defendants no.2 and 3 be restrained not to act as directors of Company--No Court should allow multiplicity of litigation--Application under Order 7 Rule 11 CPC is allowed.

        (Para 23 & 25)

       

JUDGMENT

Mr. Alok Singh, J.:- Defendant No.2 - petitioner has invoked jurisdiction of this Court under Article 227 of the Constitution of India, assailing the order dated 10.1.2009 passed by the Civil Judge, Junior Division, Kurukshetra, thereby dismissing the application filed on behalf of the defendants under Order 7 Rule 11 CPC, seeking rejection of the plaint.

2. Brief facts of the present case, inter-alia, are that plaintiff – respondent No.1 herein filed Civil Suit No.295 of 2008 (Basudev Garg Vs. MKG Milkfood Ltd. and other), seeking following relief’s: -

“a) Pass a decree of declarations in favour of the plaintiff and against the defendants declaring the purported Board meetings of the defendant No.1 Company allegedly held on 15.3.2008, 12/4/2008 and 2.5.2008 as a nullity, invalid, void and nonest in the eyes of law.

b) pass a decree of declaration in favour of the plaintiff and against the defendants declaring that defendant No.3 is not a director on the Board of defendant No.1 having vacated office in February, 2007 under Section 283(1)(g) of the Companies Act in terms of Form No.32 filed in May, 2007;

c) pass a decree of declaration in favour of the plaintiff and against the defendant declaring the illegal appointment of defendants No.4 - 9 as additional directors of the defendant No.1 Company as a nullity, invalid, void and nonest in the eyes of law;

d) pass a decree of declaration in favour of the plaintiff and against the defendants declaring that the allotment of the Director Identification No.3(DIN 3) to the defendant No.3 be declared as void.

e) pass a decree of declaration in favour of the plaintiff and against the defendants declaring the illegal removal of the plaintiff and Mr. M.S. Ayer, Mr. Rangaswami Sunder Raj and Shashikant Vishnu Joshi as directors of the Defendant No.1 Company as a nullity, void and nonest in the eyes of law;

f) pass a decree of declaration in favour of the plaintiff and against the defendants declaring the Board comprising of the plaintiffs, Mr. M.S. Ayer, Mr. Rangaswami Sunder Raj and Shashikant Vishnu Joshi, defendant No.2 as directors of the Defendant No.1 Company is the legally constituted Board of defendant No.1 Company;

g) pass a decree of cancellation of the illegal Form No.32 filed by the defendant No.2 with respect to the illegal appointment of defendants No.4 – 9 with the office of the Registrar of Companies, NCT of Delhi and Haryana.

h) pass a decree of cancellation of the illegal Form No.32 filed by the defendant No.2 with respect to the illegal removal of Mr. M.S. Ayer as Director with the office of the Registrar of Companies, NCT of Delhi and Haryana.

i) pass a decree of cancellation of the illegal Form No.32 filed by the defendant No.2 with respect to the illegal removal of Mr. Rangaswami Sunder Raj as Director with the office of the Registrar of Companies, NCT of Delhi and Haryana;

j) pass a decree of cancellation of the illegal Form No.32 filed by the defendant No.2 with respect to the illegal removal of Mr. Vishnu Joshi as Director with the office of the Registrar of Companies, NCT of Delhi and Haryana.

k) pass a decree of cancellation of the illegal Form No.32 filed by the defendant No.2 with respect to the illegal removal of the plaintiff as Director with the office of the Registrar of Companies, NCT of Delhi and Haryana.

l) pass a decree of permanent injunction in favour of the plaintiff and against the defendants No.3 to 9 from holding themselves to be the directors of the defendant No.1 Company.

m) pass a decree of permanent injunction in favour of the plaintiff and against the defendants from taking any action without the authority of the Board of Directors of the defendant Company comprising of plaintiff, defendant No.2, Mr. M.S. Ayer, Mr. Rangaswami Sunder Raj and Shashikant Vishnu Joshi.

n) pass a decree of permanent injunction in favour of the plaintiff and against the defendants restraining them from holding any meeting without the authority of the Board


















































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