Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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seeks judgement on board resolution

(Querist) 14 June 2008 This query is : Resolved 
dear sir pls solve this problem



i have file a simple recovery suit on the behalf of pvt ltd company, at the time of leading evidence defendant had taken plea that witness canot depose the evidence because the board resulation is favore of MR, X Managindirector and he furthere to authorized MR Y as A.R. he has taken plea on the judgement of appexe court Jankidevi Bhojwani V/S Ind SIND BANK . secondely he raise objection resolution pass in year 2000 case is file on 2008 that means in 2000 no cause of action in favore of the plaintiff against defendants. we have a simple one resolution which we use in every case. i want to know (a) does Board resolution has expire date (b) does we need for each and every case a seprate board resolution pls educate me on this subject


R.S.Rajesh (Expert) 14 June 2008
The Board resolutiopn has no expiry date unless it is specified in the resolution. It remains in force as long as it is not modified/cancelled.
When once the perosn is authorised to prosecute the suit or defend the legal proceedings , such authorised person can act on behalf of the company based upon the original resolution and it is not necessery to get a board resolution in respect of each and every case filed or defended by the company.
Lastly , these are all the internal affairs / matters of the company and the defendants cannot have any say, when once the court is satisfied that the person filed the suit has been authorised to file the suit and represent the company in the legal procedings.The person's auhtority cannot be questioned that too in a simple money suit, off course it should be supported by the board resolution.
ASHUTOSH (Querist) 14 June 2008
dear sir rajesh ji many many thanks for your support


yours faithfully

Ashutosh
Manish Singh (Expert) 14 June 2008
bUT ONE THING SHOULD BE KEPT IN MIND THAT FOR EVERY NEW CASE TO BE FILED OR SO, THERE SHALL BE A BOURD RESOLUTION AUTHORISING THE SAME.
IF PoA HAS BEEN MADE IN FAVOUR OF A PERSON TO DEAL WITH ANY CASE, STILL FOR EVERY SPECIFIC CASE, THERE SHOULD BE A BOARD RESOLUTION.
Srinivas.B.S.S.T (Expert) 16 June 2008
I disagree that there should be a separate and new resolution for each and every case. Once board resolution has been given in favour of a person authorising him to file cases, appear on behalf of the company and to depose in the court the same stands valid for all the cases filed by the said company and against the company unless until 1) the person whom the company authorises leaves the organisation 2) a new resolution passed depowering him to do so. Ofcourse if the case facts and the case number is mentioned in the resolution that will hold good for that particular case only as the same is specific.

If the person whom the company authorises leaves the company after filing the case, the company can pass a new resolution empowering another person and the same can be filed in the court along with a 151 CPC petition seeking the permission of the court and the case can be continued with that new person. There is no need to file the original resolution into the court, you can file a Photocopy and at the time of trial can get it compared with the original.
Srinivas.B.S.S.T (Expert) 16 June 2008
I need your comments about my opinion so I am opening this query
Manish Singh (Expert) 16 June 2008
I am not talking about separate RESOLUTION for each PoA BUT IT IS MANDATORY FOR A COMPANY TO pass a board resoltution if they are goin to get into some new case.
Its okay for poa in favour of any person that there can be only one resoltution authorising him to defend or file cases but whenever a new case is to be filed or defended, there has to be a board resoltuion for the same.


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