QATAR AIRWAYS Vs. SHAPOORJI PALLONJI & CO.

JUDGEMENT

(1.) The Respondent has instituted a suit under Order XXXVII of the Code of Civil Procedure, 1908 for the recovery of a sum of Rs. 59.22 lakhs together with interest from the Appellant, based on a contract for carrying out the work of interior decoration at certain offices of the Appellant. In response to the Summons for Judgment, the Appellant filed an affidavit questioning the maintainability of the suit on the ground that permission of the Union Government under Section 86 of the CPC has not been obtained. The learned Single Judge held that the suit is maintainable.

(2.) The Appellant is a juristic entity, a company incorporated under the laws of Qatar. The Appellant has stated that the Company is a 'closed' Qatari share holding company incorporated in accordance with the provisions of Commercial Companies Law No. 11 for the year 1981. The Memorandum of Association and transfer of Qatar Airways Company from a limited liability company to a closed share holding company has been placed on record. The objectives of the Company as disclosed therein are as follows :

(3.) The Respondent had by a communication of its Advocate dated 19 November 2009 to the Legislative Department sought the grant of consent of the Union Government in the Ministry of Law and Justice. The matter was examined and on 24 December 2009 the Union Ministry of External Affairs stated upon consultation with the Legal and Treaties Division that Qatar Airlines does not fall within the purview of Section 86 and thus the question of the grant of permission did not arise. On 13 January 2010 the Advocates for the Respondent once again addressed a communication to the Ministry of External Affairs and submitted that the consent of the Union Government would be required under Section 86 before instituting a suit. On 26 February 2010, the Ministry of External Affairs intimated that the matter was reexamined in the Ministry, which reiterated its earlier view that the grant of permission under Section 86 did not arise.