Royal Calcutta Golf Club v. Lalit Kumar Jhalaria - (High Court of Calcutta) (12 Aug 2015)

Mere reference of numerous members not having the same interest does not raise presumption of non-maintainability

MANU/WB/0657/2015

Company

In a case where the Petitioner, with over 3,000 members, alleged non-maintainability of a suit filed by one member disputing a resolution taken in an annual general meeting, the Court found in favour of the solitary member. It noted that mere reference of more than 3000 members did not raise a presumption that the suit was not maintainable in absence of leave: 'every presumption should be made in favour of the existence of the suit rather than exclusion of jurisdiction'. The Court added that remedy to bring an end to oppression and mismanagement on the part of the controlling shareholders was provided under the Companies Act, 1956.

Relevant : Order I Rule 8 Code of Civil Procedure, 1908 Act Bhagwan Das v. Goswami Brijesh Kumarji MANU/RH/0002/1983 Jhajharia Bros. Ltd. vs. Sholapoor Spinning and Weaving Co. Ltd. MANU/WB/0168/1940

Tags : COMPANY JURISDICTION SINGLE MEMBER COMPLAINT