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Issues: Whether a civil suit seeking enforcement of individual members' rights under sections 257 and 284 of the Companies Act is maintainable in the ordinary civil courts or is exclusively triable by statutory fora under the Companies Act.
Analysis: The Court examined whether the right to propose or move resolutions for election or removal of directors under sections 257 and 284 is an individual membership right capable of enforcement by civil suit, or whether the scheme of the Companies Act and specific provisions (including sections 10, 2(11), 397, 398 and related provisions) oust the civil courts' jurisdiction. The Court reviewed precedents distinguishing individual membership rights from qualified minority remedies and considered authorities on exclusivity of statutory fora, the procedural and numerical safeguards in the Act, and whether alternative remedies under sections 397-399 provide an adequate and exclusive remedy. The Court concluded that sections 257 and 284 regulate procedural exercise of an inherent individual right to seek election or removal of directors, that no specific provision of the Act expressly or by necessary implication excludes civil court jurisdiction for enforcement of those individual rights, and that remedies under sections 397-399 are distinct and not an exclusive or immediate forum for every individual member's claim.
Conclusion: The civil suit is maintainable; the trial court's order upholding maintainability is affirmed and the civil revision petition is dismissed (decision in favour of the respondent).