Court orders amendment to include deceased petitioner's legal representatives. Representative proceeding continues post-death. The court allowed the application, ordering the amendment of the petition to include the legal representatives of the deceased petitioner. The petitioners ...
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Court orders amendment to include deceased petitioner's legal representatives. Representative proceeding continues post-death.
The court allowed the application, ordering the amendment of the petition to include the legal representatives of the deceased petitioner. The petitioners were directed to complete the amendment within fourteen days and serve it to the respondents. The connected TP was scheduled for further proceedings on 22.02.2017. The court clarified that a representative proceeding under Sections 397/398 of the Companies Act does not abate on the death of a petitioner, rendering the delay argument irrelevant.
Issues Involved: 1. Condonation of delay in filing the application. 2. Setting aside the abatement of the right of legal heirs of the deceased petitioner. 3. Allowing the proposed amendment to the company petition. 4. Granting leave to carry out the amendment and reaffirm the company petition. 5. Serving the amended petition to the respondents.
Detailed Analysis:
Condonation of Delay: The applicants sought condonation of delay in filing the substitution application for the legal representatives of the deceased petitioner No. 1. The respondents argued that the applicants failed to show sufficient cause for the delay, citing the Supreme Court decision in *Balwant Singh v. Jagdish Singh* [2010] 8 SCC 685, which emphasizes that sufficient cause must be interpreted reasonably and practically, and that negligence or inaction on the part of the applicant is not excusable. Despite this, the court found that the proceeding under Sections 397/398 of the Companies Act, 1956, is representative in nature and does not abate on the death of a petitioner, thus making the delay argument redundant.
Setting Aside Abatement: The respondents contended that the entire proceeding stood abated due to the death of petitioner No. 1 and the failure to substitute the legal representatives in time. They argued that the right to sue did not survive in favor of the surviving petitioners. However, the court held that a representative proceeding under Sections 397/398 does not abate on the death of a petitioner, as established in *Jawahar Singh Bikram Singh v. Sharda Talwar* and other cases. Therefore, the court concluded that there was no abatement of the petition.
Proposed Amendment to the Company Petition: The applicants sought to amend the company petition to include the legal representatives of the deceased petitioner. The court allowed the amendment, noting that the original petition was validly filed with the requisite share qualification, and subsequent events do not affect its validity as per the decision in *Rajahmundry Electric Supply Corporation Ltd. v. A Nageshwara Rao*.
Granting Leave to Carry Out the Amendment and Reaffirm the Petition: The court granted leave to the applicants to carry out the amendment within fourteen days and reaffirm the company petition. This step ensures that the legal representatives of the deceased petitioner are properly included in the proceedings.
Serving the Amended Petition to the Respondents: The court directed the petitioners to serve a copy of the amended petition (without annexures) to the respondents, allowing them to take necessary actions in response to the amendment.
Conclusion: The application was allowed, and the court ordered the amendment of the petition to include the legal representatives of the deceased petitioner. The petitioners were directed to complete the amendment process within fourteen days and serve the amended petition to the respondents. The connected TP was scheduled for further proceedings on 22.02.2017.
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