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        Companies Law

        2005 (8) TMI 371 - HC - Companies Law

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        Interlocutory impleadment discretion under civil procedure was upheld, with company representation issues left for trial. An interlocutory impleadment order under Order I Rule 10 CPC was left undisturbed in revision because the trial court had exercised discretion to permit ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Interlocutory impleadment discretion under civil procedure was upheld, with company representation issues left for trial.

                                An interlocutory impleadment order under Order I Rule 10 CPC was left undisturbed in revision because the trial court had exercised discretion to permit the managing director to come on record. The dispute was treated as one involving internal company differences, and the revisional court declined to examine the merits of rival claims as to who should represent the company at that stage. The bona fides of the suit and whether it was instituted in the company's interest were held to be matters for determination at final trial, not in revision. The revision petition therefore failed.




                                Issues: Whether the order allowing impleadment of the managing director as a defendant under Order I Rule 10 of the Code of Civil Procedure, 1908 called for interference in revision.

                                Analysis: The dispute was treated as arising from internal differences within the company. The Court declined to go into the merits of the company's internal affairs or the rival claims regarding who was the proper person to represent the company at that stage. It observed that whether the litigation instituted in the company's name was bona fide and in the company's interest was a matter for consideration at the time of final disposal of the suit. Since the trial court had exercised discretion in permitting the applicant to come on record, no ground was made out to interfere in revision.

                                Conclusion: The impleadment order was upheld and the revision petition failed.

                                Final Conclusion: The revisional court left the parties to agitate their rival contentions before the trial court in the suit and declined to disturb the discretionary order permitting impleadment.

                                Ratio Decidendi: An interlocutory impleadment order based on the trial court's discretion will not be interfered with in revision where the controversy turns on disputed internal company affairs and the bona fides of the litigation can be examined at the trial stage.


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