V TIMMAPPA Vs. M G BROTHERS FINANCE LTD

JUDGEMENT

(1.) Respondent No.1 obtained a money decree against Respondents 2 to 4 and the revision petitioner and filed E.P. for executing the said decree. Revision Petitioner filed an objection stating that inasmuch as the decree-holder i.e. first respondent is a Company, Civil Court has no jurisdiction to entertain the suit or execute the decree, and so, the decree passed is without jurisdiction and cannot be executed in view of Section-10 of the Companies Act. The executing Court over-ruled the said objection and ordered further steps in the E.P. Hence this revision.

(2.) The contention of the learned counsel for the revision petitioner is that inasmuch as Section-10 of the Companies Act lays down that the 'Court' having jurisdiction under this Act, is the High Court having jurisdiction in relation to the place at which the registered office of the company concerned is situate, except to the extent to which jurisdiction has been conferred on any District Court or District Courts subordinate to that High Court in pursuance of sub- section (2), and where jurisdiction has been so conferred, the District Court in regard to matters falling within the scope of the jurisdiction conferred, in respect of companies having their registered offices in the district, it is only the High Court or the District Court concerned that can entertain the suit filed by the first respondent and so, the decree passed by the Court of the Principal Junior Civil Judge is non-est in law and cannot be executed.

(3.) I am unable to agree with the contention of the learned counsel for the revision petitioner that inasmuch as Section-10 of the Companies Act lays down that 'the Court having jurisdiction under this Act' means the Court specified therein, civil court has no jurisdiction to entertain suits for recovery of money filed by a company registered under the provisions of the Companies Act, because matters which are to be dealt with by the Court under that Act i.e. the Companies Act are matters relating to winding up of a Company etc. which are mentioned in that Act. Section-10 of the Companies Act has to be read in conjunction with the other provisions contained therein relating to winding up of the company etc. which make a reference to 'the Court' under the Companies Act deciding the issues mentioned therein.