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Bhaven (Professional)     01 April 2018

Authorization by Board of Directors to defend suit

Is a Board Resolution authorizing one of the Directors to defend an eviction suit and sign and verify a written statement mandatory?

I am the Plaintiff in an eviction suit. Whether I can point out this defect to the Court and whether the Court can strike out the defence or alternatively frame an additional issue? The matter is at the stage of cross-examination (cross has not yet commenced).

The defendant company is grossly non-compliant with Companies Act provisions. Only 1 Director is alive and company has not filed annual returns since 2005 and the company is defunct. In no circumstance could the company have convened a board meeting and authorized a Director to defend the suit.  
 

Thanks in advance! 



 5 Replies

Advocate Friend (Assistant Manager - Legal)     02 April 2018

Follow the link for Question 1. https://indiankanoon.org/doc/277836/

 

For Question 2 

Whether I can point out this defect to the Court - An advoate can certainly do this.

 

For Question 3

Whether the Court can strike out the defence or alternatively frame an additional issue?

Striking out defense (this is good tactic when you are for the defendant not when you are the plaintiff) - Looks good primafacie, but once that is done time will be granted, stage of filing defence is once again opened up, your evidence will be termed as irregular proceedings.

Next you will need to wait till the defence files its Defence appropriately. Or you ask the Court to close the right of defendant to file its defense. (Usually this will not happen and if this happens the Advocate for defendant will challenge it for want of natural justice etc. more litigation)

Rather its better to get the responsible person on record whose statements will be binding on the Company.

Striking out defense (this is good tactic when you are for the defendant not when you are the plaintiff) 

 

Please See: What ever stated above is only an opinion on law and based at a question of law and not case specific.

Nothing stated above shall be construed in any manner as a legal advice.

Any consequence of following the opinion will be at the sole risk of the person doing so and no claim shall lie againt the author of this opinion.

1 Like

ADVOCATE TRILOK (CRIMINAL family PROPERTY topfreind@gmail.com )     02 April 2018

excellant opinion which comes by expereince only.

Yusuf Rampurawala   03 April 2018

Hi. If the defendant is a company, then a valid board resolution appointiong any director or any person to act for and on behalf of the company in the eviction suit is mandatory. If the written statement is not signed by an authorised director/person duly authorised by the company through a board resolution, then you should have taken that objection. You can still file an application for having the defence struck off in absence of valid board resolution. Same ground is available to you when affidavit of evidence is filed by an unauthorised person not authorised by the company. You can impeach the credibility of the witness in the cross examination. 

1 Like

Bhaven (Professional)     03 April 2018

Thank you for your reply. Would there be any citation that'll help in this regard. Based on my search, I could only find related matters where the plaintiff is required to annex a board resolution. However, the same should apply to the defendant company as well. But I could not find any precedent in this case.

Yusuf Rampurawala   03 April 2018

Nope I do not have any citation. You dont need any citation. Its plain and simple. A company cannot act on its own as its an artificial person. It can only act through the medium of another authorised person. Thats a basic recognised principle. 


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