EASWARI CHIT FUNDS Vs. S SESHADRI

JUDGEMENT

(1.) THE revision petition has to be accepted. It is not disputed that the company known as "Easwari Chit Funds" is still in existence and has not been wound up. It is also admitted that there is a chairman or chairperson who is representing the company. But the complaint has been laid against the company represented by a Managing Committee. The Managing Committee has no legal standing. It is not a legal entity with power to sue and be sued. It was the committee consisting of the creditors of the company. The creditors of the company formed themselves into an association for the purpose of realizing the amount due to them from the company. They have no official status nor have been recognized either by the Company Law Board or by the Court as competent to represent the company. Therefore, the filing of the very complaint against the opposite party namely Easwari Chit Funds as represented by the Managing Committee is on the face of it impermissible in law. They have no legal authority to represent the company especially when the company is still a going concern and has it own board of management. Therefore, the very framing of the complaint is improper. The lower Forum erred in entertaining such a complaint. Thus, there is a failure to exercise the jurisdiction on the part of the opposite party and an erroneous exercise of jurisdiction as well. Hence on the short point, the order of the lower Forum has to be set aside.

(2.) IN the result, the revision petition is allowed. The order passed by the lower Forum is clearly without jurisdiction and, therefore, is hereby set aside. In the circumstances, there will be no order as to costs.