HIRALAL GUPTA Vs. JAGDISH KUMAR SETH

JUDGEMENT

(1.) This order will govern C.R. No. 278 of 2000 (R) and C.R. No. 356 of 2000 (R) as both the civil revision applications have been filed against the order dated 5-6-2000 passed by Sub-Judge-1, Bokaro at Chas in T.S. No. 17 of 1999, whereby and whereunder the learned sub-or- dinate Judge rejected the petitions filed on behalf of the petitioners under Order XIV, Rule 2 of the Code of Civil Procedure read with Section 151 of the Code of Civil Procedure, wherein it was prayed that the question of maintainability of the suit may be decided as a preliminary issue.

(2.) Briefly stated the relevant facts concerning the above-mentioned civil revision application are that the plaintiff, namely, Jagdish Kumar Seth, opposite party No. 1 filed a declaratory suit against the defendant being Title Suit No. 17 of 1999 praying for the following reliefs:

(3.) The plaintiff made out a case that he resigned from the Board of Directors on 5-4- 1997 and his resignation was accepted by the Bpard of Directors of the Company unconditionally on-7-4-1997 and on 15-4-1997 Form No. 32 are prescribed under Section 303 of the Companies Act, 1956 was signed by the respective Directors indicating therein that the defendant No. 3 was inducted as Director with effect from 5-4-1997 and the plaintiff's resignation was accepted by the Board of Directors of the Company on 7-4-1997.The resolution dated 7-4-1997 of the Board of Directors and Form No. 32 was filed before the Registrar of the Company, of which the defendant No. 4, i.e., Allahabad Bank had the knowledge. It was, therefore, stated that after 5-4-1997, the plaintiff had ceased to-be the Director of the Company and severed his all business, relationship for all purposes from defendant Nos. 1,2 and 3. Therefore, he is not liable for any inaction, omission or commission in respect of the business affairs of the Company and he has no personal liability whatsoever in respect of the affairs of the Company.