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TMI Blog2020 (1) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... alue in the eye of law and therefore prayed to dismiss the suit. 3. During the pendency of the said suit, the petitioners/defendants filed I.A.No.491 of 2018 under Order VII Rule 11 (a) read with Section 151 CPC, seeking to reject the plaint, contending that there is no substantial legal cause of action for filing the suit and the entire basis for filing the suit is based on an alleged oral agreement between two companies is also absurd, speculative and bad in law and therefore prayed to reject the plaint. 4. The trial Court, on consideration of the record, declined to accept the plea of the petitioners and dismissed the interlocutory application. Aggrieved thereby, the present CRP is filed. 5. The learned counsel appearing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract made by or on behalf of a company, may be signed by any key managerial personnel or an officer of the company duly authorized by the Board in this behalf." 465. Repeal of certain enactments and savings:- (1) The Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961 (hereafter in this section referred to as the repealed enactments) shall stand repealed: Provided that the provisions of Part IX A of the Companies Act, 1956 shall be applicable mutatis mutandis to a Producer Company in a manner as if the Companies Act, 1956 has not been repealed until a special Act is enacted for Producer Companies: Provided further that until a date is notified by the Central Government under subsection (1) of Section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of the Board of Company Law Administration and court shall continue to apply as if the Companies Act, 1956 has not been repealed: Provided also that provisions of the Companies Act, 1956 referred in the notification issued under section 67 of the Limited Liability Partnership ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing required by the Court to correct the valuation within a time to be fixed by the Court, fails to do so; (c) Where the relief claimed is properly valued, but the plaint is returned upon paper insufficiently stamped, and the plaintiff, on being required by the Court to supply the requisite stamp-paper within a time to be fixed by the Court, fails to do so; (d) Where the suit appears from the statement in the plaint to be barred by any law; (e) Where it is not filed 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 lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whole to find out whether the averments disclose a cause of action or whether the suit is barred by any law. It is needless to observe that the question as to whether the suit is barred by any law, would always depend upon the facts and circumstances of each case. The averments in the written statement as well as the contentions of the defendant are wholly immaterial while considering the prayer of the defendant for rejection 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 compan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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