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sunny (lawyer)     17 October 2010

can resolution file on any stage?

to all learned advocates

                                           I have filed a suit under order 7 rule 1’2c.p.c. In the said suit the plaintiff is a pvt. Ltd. Company. Now the suit comes on the stage of evidence and I didn’t file the  proper resolution that ‘one director of the company is authorized to represent the company in the said suit’. I know that there are some authorities  which says that the resolution can be filed at any stage of litigation. can any one tell me about these authorities.

  

 



Learning

 2 Replies

anil kumar (service)     18 October 2010

Pease rely, inter-alia, rely upon a decision of the SC in United Bank of India Vs Sh. Naresh Kumar (AIR 1997 SC 3 =1996( 6  )Suppl.SCR 478 =1996( 6  )SCC 660 =1996( 6  )SCALE764 ) wherein it was held as under:

Quote

"It cannot be disputed that a company like the appellant can sue and be sued in its own name. Under Order 6 Rule 14 of the Code of Civil Procedure a pleading is required to be signed by the party and its pleader, if any. As a company is a juristic entity it is obvious that some person has to sign the pleadings on behalf of the company. Order 29 Rule 1 of the Code of Civil Procedure, therefore, provides that in a suit by against a corporation the Secretary or any Director or other Principal officer of the corporation who is able to depose to the facts of the case might sign and verify on behalf of the company. Reading Order 6 Rule 14 together with Order 29 Rule 1 of the Code of Civil Procedure it would appear that even in the absence of any formal letter of authority or power of attorney having been executed a person referred to in Rule 1 of Order 29 can, by virtue of the office which he holds, sign and verify the pleadings on behalf of the corporation. In addition thereto and de hors Order 29 Rule 1 of the Code of Civil Procedure, as a company is a juristic entity, it can duly authorise any person to sign the plaint or the written statement on its behalf and this would be regarded as sufficient compliance with the provisions of Order 6 Rule 14 of the Code of Civil Procedure. A person may be expressly authorised to sign the pleadings on behalf of the company, for example by the Board of Directors passing a resolution to that effect or by a power of attorney being executed in favour of any individual. In absence thereof and in cases where pleadings have been signed by one of it's officers a Corporation can ratify the said action of it's officer in signing the pleadings. Such ratification can be express or implied. The Court can, on the basis of the evidence on record, and after taking all the circumstances of the case, specially with regard to the conduct of the trial, come to the conclusion that the corporation had ratified the act of signing of the pleading by it's officer." Unquote

R.Ranganathan (Director)     18 October 2010

I agree with Mr. Anil Kumar. You can produce the resolution at the time of filing proof affidavit in the trial stage.


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