https://www.taxtmi.com/caselaws?id=187906 The Court held that proceedings under sections 397 and/or 398 of the Companies Act are representative actions. It emphasized that such proceedings concern the company's affairs, not individual rights. The Court found Order 23, Rule 3-B CPC applicable, requiring Court leave for any agreement in a representative suit. The alleged agreement was deemed void as it lacked Court approval and involved non-parties. The Court stressed the need for Court approval before entering into any agreement in a representative action. Consequently, the application was dismissed for non-maintainability. en-us Mon, 29 Apr 1985 00:00:00 +0530 Thu, 10 Nov 2016 17:02:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187906 The Court held that proceedings under sections 397 and/or 398 of the Companies Act are representative actions. It emphasized that such proceedings concern the company's affairs, not individual rights. The Court found Order 23, Rule 3-B CPC applicable, requiring Court leave for any agreement in a representative suit. The alleged agreement was deemed void as it lacked Court approval and involved non-parties. The Court stressed the need for Court approval before entering into any agreement in a representative action. Consequently, the application was dismissed for non-maintainability. Case-Laws Companies Law Mon, 29 Apr 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187906