TMI Blog2020 (1) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. In the new Act, it is expressly said this Act which means 2013 Act. When there is conflict between the old Act and new Act, new Act will prevail. Application under Order VII Rule 11 CPC can be filed at any stage of the proceedings. Therefore, the contention of the respondent in this regard cannot be appreciated. As per Section 10 of the Contract Act, if law envisages written contract, it should be in writing. Normally, when two companies wanted to enter into an agreement for sale and purchase of of land, they must enter into a written agreement, but not by way of an oral agreement - In the present case, it is the case of the respondent that it entered into an oral agreement with the petitioners for purchase of a huge extent of land, which cannot be believed. The trial Court dismissed the application filed by the petitioners/defendants on the ground that the application is filed when the suit was coming up for arguments. But, as per the provisions of Order VII Rule 11 CPC., when an application filed for rejection of the plaint, it shall be decided on the basis of the cause of action disclosed in the plaint and the said application can be filed at any stage even at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing for the petitioners/defendants submitted that the petition filed under Order VII Rule 11 CPC., shall be decided on the basis of the cause of action disclosed in the plaint. He further submitted that the suit filed by the respondent/plaintiff for specific performance of oral agreement of sale against the company, which is a juristic person, is not maintainable and the plaint is liable to be rejected. He further submitted that a plaint can be rejected at any stage (even at the stage of arguments), provided it is shown that there is no disclosure of cause of action and when the suit is barred by any other statute. In support of his arguments, he relied on a decision reported in Raghwendra Sharan Singh V. Ram Prasanna Sigh 2019 AIR (SC) 1430, therefore, he prayed to allow the CRP. 6. Sri S.Niranjan Reddy, learned senior counsel appearing for the respondent/plaintiff, submitted that the petitioners/defendants filed the above IA., when the main suit was coming up for arguments, with an intention to drag on the proceedings in the suit. He further submitted that the contention of the petitioners/defendants that there cannot be an oral agreement between juristic persons c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducer Companies: Provided further that until a date is notified by the Central Government under subsection (1) of Section 434 for transfer of all matters, proceedings or cases to the Tribunal, the provisions of the Companies Act, 1956 in regard to the jurisdiction, powers, authority and functions of the Board of Company Law Administration and court shall continue to apply as if the Companies Act, 1956 has not been repealed: Provided also that provisions of the Companies Act, 1956 referred in the notification issued under section 67 of the Limited Liability Partnership Act, 2008 shall, until the relevant notification under such section applying relevant corresponding provisions of this Act to limited liability partnerships is issued, continue to apply as if the Companies Act, 1956 has not been repealed. (2) Notwithstanding the repeal under sub-section (1) of the repealed enactments,- (a) anything done or any action taken or purported to have been done or taken, including any rule, notification, inspection, order or notice made or issued or any appointment or declaration made or any operation undertaken or any direction given or any pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in duplicate; (f) Where the plaintiff fails to comply with provisions of rule 9 Provided that, the time fixed by the Court for the correction of the valuation or supplying of the requisite stamp-paper shall not be extended unless the Court, for reasons to be recorded, is satisfied that the plaintiff was prevented by any cause of an exceptional nature form correcting the valuation or supplying the requisite stamppaper, as the case may be, within the time fixed by the Court and that refusal to extend such time would cause grave injustice to the plaintiff. 8. The crucial question that needs to be decided in this Civil Revision Petition is whether the oral agreement of sale entered by two or more private limited companies validly gives rise to cause of action to file suit for specific performance . 9. Section 21 of the Act of 2013 lays down the manner in which the document or proceeding requiring authentication by a company or contracts made by or on behalf of a company. There is no provision of oral agreement in the Act of 2013. In view of Section 465(2)(b) of the Act of 2013 coming into force, Section 46(1)(b) of the Act of 1956 is repealed and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the plaint. Even when the allegations made in the plaint are taken to be correct as a whole on their face value, if they show that the suit is barred by any law, or do not disclose cause of action, the application for rejection of plaint can be entertained and the power under Order 7 Rule 11 CPC can be exercised. If clever drafting of the plaint has created the illusion of a cause of action, the court will nip it in the bud at the earliest so that bogus litigation will end at the earlier stage. 12. It is to be noted that a company being an artificial legal person and having no physical existence has necessarily to act through the human agency. A company is competent to contract but the contracts are to be made by the agent acting on behalf of the company. The contracts on behalf of a company may be made in the manner specified in Section 46 of the Act of 1956. This section provides for the form of contracts to be made on behalf of a company, and declares that a contract made according to this section shall bind the company. Clause (a) of sub-section (1) states how contracts in writing can be made and its clause (b) states how contracts by parol i.e. oral or by wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
