RAMANLAL AMRATLAL SHODHAN Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Employees State Insurance Corporation (hereinafter referred to as `the plaintiff) has filed in the City Civil Court at Ahmedabad Civil Suit No. 2831 of 1972 against defendant No. 1 who is the Official Liquidator of Anant Mills Limited and defendant No. 2 who was the Managing Director of that company for recovering a sum of Rs. 2 80 268 p. which according to the plaintiff are recoverable as a special contribution from Anant Mills Limited under the Employees State Insurance Act. Anant Mills Ltd. is a company under liquidation. Defendant No. 2 has been joined as a party to the suit because he is the guarantor. The Official Liquidator representing the company has not filed the written statement in the suit. Defendant No. 2 has filed his written statement and inter alia raised the contention that the trial Court has no jurisdiction to entertain the suit. Issue No. 6 raised by the learned trial Judge relates to the jurisdiction of the Court to entertain and try the suit. It was tried by the learned trial Judge as a preliminary issue. Reliance was placed upon sec. 446 of the Companies Act 1956 in support of the contention that the trial Court has no jurisdiction to proceed with the suit. The learned trial Judge negatived the contention and held that he has jurisdiction to try the suit.

(2.) It is that order which is challenged by defendant No. 2 in this civil revision application.

(3.) Mr. M. M. Shah who appears on behalf of defendant No. 2 has invited my attention to sub-sec (1) of sec. 446 of the Companies Act which according to him bars the jurisdiction of the Court to try the suit. It provides as follows :-