Maintainability of suit

BHARTI KOTHARI (Querist) 06 September 2020 This query is : Resolved
DEFENDANT HAS MADE PURCHASE FROM PARENT COMPANY AS WELL FROM SUBSIDARY COMPANY. NOW CAN SINGLE RECOVERY SUIT BE FILLED BY PARENT COMPANY FOR ITSELF AS WELL FOR SUBSIDARY COMPANY AGAINST DEFENDANT

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This discussion explores whether a parent company can file a single recovery suit covering debts owed to both itself and its subsidiary. The general consensus is that separate suits are necessary due to differing legal entities, PAN, GST, and CIN numbers. While a single lawyer can represent both, filing two distinct legal actions is typically required for maintainability.

Isaac Gabriel (Expert) 06 September 2020
Single suit could be filed for both accounts

Dr J C Vashista (Expert) 07 September 2020
Since cause of action, defendant and jurisdiction of the courts is different it has to be filed separately.

SHIRISH PAWAR, 7738990900 (Expert) 07 September 2020
Hello,

As per me you have to file 2 different suits against defendant as plaintiff is different.

R.K Nanda (Expert) 07 September 2020
File two separate suits against defendant.

Shilesh Patel (Expert) 07 September 2020
agree with the above experts, two different suits will be filed.

Rajendra K Goyal (Expert) 08 September 2020
Two suits need to be filed.

Hemant Agarwal (Expert) 08 September 2020
1. Since PAN & GST & CIN number would be different and separate ITR maybe being filed by both legal entities, a common recovery suit for any civil /criminal action is not tenable. A common lawyer can represent both legal entities.

2. Presume that both legal entities operate under one PAN & GST & CIN number (which is not probable), THEN a common recovery suit for any civil purposes is tenable.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

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