What are the provisions of C.P.C. that apply to suits by or against the corporation?

Question: What are the provisions of C.P.C. that apply to suits by or against the corporation?

Find the answer to the mains question only on Legal Bites. [What are the provisions of C.P.C. that apply to suits by or against the corporation?]

Answer

Special provisions-It is provided by Order 29, C.P.C. as follows that

(a) In suits by or against the corporation, the pleading may be signed and verified on behalf of the corporation by the

(i) Secretary, and

(ii)Director, or

(iii) other principal officers, of the corporation who is able to depose to the facts of the case.[Order. 29, Rule. 1]

(b) Summons may be served either on the above named three officers or leaving or sending it by post at its registered office or at its usual place of business.

(c) The Court may at any stage of the suit require personal attendance of any of the aforesaid officers who may be able to answer material questions relating to the suit. [Order. 29. Rule.3]

Where a Bank as plaintiff filed a suit against the defendants, the said kit was signed and verified by the agent of the Bank, it was held the suit was is properly verified by a principal officer of the Bank who was acquainted with the facts of the case. Union Bank of India v. Prakash Chandra, [A.I.R. I 1977 Cal. 55]

A petition under Article 226 of the Constitution of India to which the provisions of this rule are applicable, signed, and verified by the principal officer of a company who is able to depose to the facts of the case cannot be held to be defective merely because there is no resolution of the company empowering him to present the petition. Jaipur Udhyog v. Union of India, [I.R. 1972 Raj. 129]

It has been held by the Supreme Court that where under the Articles of association of a company a suit on behalf of the company is to be filed with the approval of the directors, then there could be no objection with regard to the maintainability of the suit if it has been signed by the Secretary of the company who holds a general power of Attorney from the Directors, and whose action is approved by them. IT. M. & Co. v. H. I. Trust Ltd., [A.I.R. 12 S.C. 1311]

It is not necessary that summons must be served on some human being who is connected with the corporation. If the service is made on the corporation by serving another corporation which may be the principal office of the first corporation, such service will be sufficient in the eye of the law. Jute & Gunny Brokers Ltd. v. U.P. State, [A.I.R. 1961 S.C. 1224].

The word “any Director” occurring in this rule need not necessarily mean, the Director who has signed and verified the pleading or on whom summons have been served but he may be any one of the Directors who will be in a position to answer all material questions relating to the suit. Ram chand & Sons Sugar Mills v. Kanhiya Lal, [A.I.R. 1966 S.C. 1899].

---

Important Mains Questions Series for Judiciary, APO & University Exams

1. CPC Mains Questions Series: Important Questions Part – I of X
2. CPC Mains Questions Series: Important Questions Part – II of X
3. CPC Mains Questions Series: Important Questions Part – III of X
4. CPC Mains Questions Series: Important Questions Part – IV of X
5. CPC Mains Questions Series: Important Questions Part – V of X
6. CPC Mains Questions Series: Important Questions Part – VI of X
7. CPC Mains Questions Series: Important Questions Part – VII of
8. CPC Mains Questions Series: Important Questions Part – VIII of X
9. CPC Mains Questions Series: Important Questions Part – IX of X
10. CPC Mains Questions Series: Important Questions Part – X of X