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2004 (1) TMI 371

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....f defendant No. 2 petitioner as Additional Director of Barbigha Cold Storage is illegal; the appointments of Sanjiv Gupta, son of defendant No. 2 and two other persons, namely, Amoo Kumar and Janardan Singh as employees of the said Cold Storage are illegal and they are not entitled to handle any work of the Cold Storage; for grant of interim injunction restraining defendant No. 1 petitioner from making any expenses of the Cold Storage Company without the sanction of plaintiff Nos. 1 and 2 and defendant No. 3; and for restraining the defendants from making any objection in the legal discharge of duty of plaintiff Nos. 1 and 2 and defendant No. 3 as Director of the Company. 3. The undisputed fact is that the Barbigha Cold Storage (hereinaf....

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....ther ground of challenge is that the suit was filed by plaintiff Nos. 1 and 2 on behalf of the Cold Storage without the resolution of the Board and as such the same was not maintainable. 6. The plaintiffs filed a rejoinder to the said petition stating that the dispute is of a civil nature and does not pertain to the internal affairs of the Company and the same is not covered by section 10 of the Act. 7. The court below, by order dated 22-1-1997 held that the suit was not maintainable, against which Civil Revision No. 289 of 1997 was filed and the same was allowed on 4-11-1997 after coming to the conclusion that the court below did not decide the question correctly as it wrongly took recourse to the provision of section 10 of the Act t....

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....aw is well-settled that where there is a right there is a remedy (ubi gus ibi remedium). The jurisdiction of the Civil Court is very expensive one as is evident from section 9 of the Code and its exclusion is not to be readily inferred. Unless its exclusion is barred by the statute either expressly or by implication, it has jurisdiction to entertain the suit concerning dispute of civil nature. If a statute creates a special right, liability and a forum for determination of the same and provides that all questions concerning such right and liability are to be determined by the said Tribunal or forum and bars the jurisdiction of the Civil Court, then such rights and liabilities are to be determined by the Tribunal or forum created by the stat....

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...., laid down the principles for exclusion of the jurisdiction of the Civil Court. Said principles are as follows :- "...(1) Where the statute gives a finality to the orders of the special tribunals the civil court's jurisdiction must be held to be excluded if there is adequate remedy to do what the civil courts would normally do in a suit. Such provision, however, does not exclude those cases where the provisions of the particular Act have not been complied with or the statutory tribunal has not acted in conformity with the fundamental principles of judicial procedure. (2) Where there is an express bar of the jurisdiction of the Court, an examination of the scheme of the particular Act to find the adequacy or the sufficiency of the rem....

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....onality are for the decision of the authorities and a civil suit does not lie if the orders of the authorities are declared to be final or there is an express prohibition in the particular Act. In either case the scheme of the particular Act must be examined because it is a relevant enquiry. (7) An exclusion of the jurisdiction of the civil Court is not readily to be inferred unless the conditions above set down apply." (p. 89) 13. However, it has been said in paragraph (1) of the said principles that even if the jurisdiction is barred, but if the provisions of the particular Act have not been complied with or the Tribunal has not acted in conformity with the fundamental principles of judicial procedure, the jurisdiction of the civil ....

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....mpany concerned is situate, except in the cases where jurisdiction has been conferred on any District Court or District Courts subordinate to that High Court in pursuance of sub-section (2) of the Act. However, he, in spite of the question put to him, has not been able to show that there is any provision either in the Companies Act or any of the provisions of the Companies Act vests power in the Tribunal or forum in terms of section 10 of the Act to deal with the matters, complained of in the plaint. So far as the case of Hirendra Bhadra (supra), relied upon by the learned counsel for the petitioners is concerned, that was a case where the suit was filed for declaration that the resolution resolving that the Director vacated the office for ....