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ALLAHABAD HIGH COURT
Suneet Kumar, J.
New Line Mercantile Pvt. Ltd. - Appellant
Versus
Mirzapur Electric Supply Company Ltd. And 4 Others - Respondent
Matters Under Article 227 No. - 69 of 2016
Decided On : 08-01-2016
Order 7 Rule 11 CPC - Application for deciding the suit - The court directed the lower court to first decide the application under Order 7 Rule 11 CPC before proceeding to decide the suit, considering the dissolution of the plaintiff-company and the lack of legal entity to institute the suit.
Fact of the Case:
The applicant requested the court to decide the application under Order 7 Rule 11 CPC before deciding the suit, citing the dissolution of the plaintiff-company and the lack of legal entity to institute the suit.
Finding of the Court:
The court directed the lower court to first decide the application under Order 7 Rule 11 CPC expeditiously before proceeding to decide the suit without granting unnecessary adjournment to either of the parties.
Issues: Application under Order 7 Rule 11 CPC, dissolution of the plaintiff-company, lack of legal entity to institute the suit
Ratio Decidendi: The court emphasized the need to address the application under Order 7 Rule 11 CPC before proceeding to decide the suit, considering the dissolution of the plaintiff-company and the lack of legal entity to institute the suit.
Final Decision: The petition is disposed of with the direction for the lower court to decide the application under Order 7 Rule 11 CPC before proceeding to decide the suit.
Suneet Kumar, J.
The only prayer pressed by the applicant is that the application under Order 7 Rule 11 CPC dated 19 May 2015 be decided before deciding the suit.
2. The submission of the learned counsel for the applicant is that the plaintiff-company has already been dissolved under Section 565 of Companies Act 1956 on 14 December 2010. The plaintiff company or its alleged transferee have no legal entity to institute the suit. Learned counsel for the applicant would further point out that earlier a suit being Original Suit No. 65 of 2015 (The Mirzapur Electric Supply Company Ltd. Vs. New Line Mercantile Pvt. Ltd and another) wherein plaint has already been rejected and the application under Order 7 Rule 11 was allowed on the same objection by order dated 27 November 2015.
3. Having due regard to the facts and circumstances of the case, it is provided that the court below shall first decide the application under Oder 7 Rule 11 CPC expeditiously before proceeding to decide the suit being O.S. No. 334 of 2015 without granting unnecessary adjournment to either of the parties.
With the above observations, the petition is disposed of.
No order as to costs.
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