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Murray & Co. Pvt. Ltd. And Others v. Madanlal Poddar And Others
Factual and Procedural Background
The opinion concerns a transfer petition seeking transfer of OS No. 166 of 1993, titled Ajanta Services (P) Ltd. v. Murray & Co. (P) Ltd., pending in the Calcutta High Court. The Calcutta suit was stated to have been filed on May 12, 1993.
Prior to that, Murray & Co. and others filed Suit No. 649 of 1993 in the court of the Civil Judge, Nagar, Kanpur, seeking (i) a permanent injunction restraining defendants from acting as directors of the plaintiff company and from selling company and personal properties situated at Calcutta and Kanpur, (ii) restraint on operating bank accounts in India, and (iii) restraint on making settlements on behalf of the company in matters pending in court. A mandatory injunction was also sought to direct the defendants to hand over papers and documents regarding the affairs of the company to the plaintiff company and to Ashok Kumar Nevatia (second plaintiff) at Kanpur.
The Calcutta suit was described as a cross-suit by the same shareholders seeking almost identical relief against defendants who were directors of the company, reflecting contentious litigation between two rival groups within the company.
Legal Issues Presented
- Whether OS No. 166 of 1993 pending in the Calcutta High Court should be transferred to the court of the Civil Judge, Nagar, Kanpur, to be tried along with Suit No. 649 of 1993.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court noted that the Kanpur suit was filed earlier in time than the Calcutta suit and that the Calcutta proceeding was in the nature of a cross-suit seeking almost identical relief. The court observed that the disputes arose from litigation between two rival groups in the company and stated that the two suits deserved to be decided by one and the same court.
In assessing the appropriate forum, the court emphasized that the registered office of the company was at Kanpur and recorded a submission at the Bar that the company's income-tax returns were filed at Kanpur. On these factors, the court held that the balance of convenience suggested that Kanpur was the most convenient court to try both suits together.
Holding and Implications
TRANSFER PETITION ALLOWED. The court directed that the file of OS No. 166 of 1993 titled Ajanta Services (P) Ltd. v. Murray & Co. (P) Ltd. pending in the Calcutta High Court be transferred to the file of the Civil Judge, Nagar, Kanpur, to be tried along with Suit No. 649 of 1993 Murray & Co. (P) Ltd. v. Madanlal Poddar.
The direct consequence is that both suits concerning substantially similar relief between rival groups within the company will be tried together in Kanpur. The order made no award of costs (No costs) and, on the provided text, does not indicate that any new precedent or broader legal principle was laid down beyond this transfer direction.
Order
1. This petition is to seek transfer of OS 166 of 1993 titled Ajanta Services (P) Ltd. v. Murray and Co. (P) Ltd. pending in the Calcutta High Court. The aforesaid suit was said to have been filed on May 12, 1993. Beforehand Murray & Co. and a few others had filed suit No. 649 of 1993 in the court of Civil Judge, Nagar, Kanpur, seeking relief of permanent injunction against the defendants restraining them from acting as directors of the plaintiff company i.e Murray & Co. and also from selling the properties of the company situated at Calcutta and Kanpur and of their personal properties in any manner, and from operating the bank accounts in India and also from making any settlement on behalf of the company in matters pending in the court. Besides, a decree for mandatory injunction was also prayed for directing the defendants to hand over all the papers and documents regarding the affairs of the company in their possession to the plaintiff company, and Ashok Kumar Nevatia, the second plaintiff, at Kanpur. The suit at Calcutta is in the nature of a cross-suit filed by the same shareholders seeking almost the identical relief against the defendants who are directors of the company. It appears that two rival groups in the company are engaged in this contentious litigation trying to score over each other. It is seen that not only is the suit filed in Kanpur earlier in time but the registered office of the company is also at Kanpur. We are told at the Bar that the income tax returns of the company are also filed at Kanpur. It goes without saying that the two suits otherwise deserve to be decided by one and the same court. For what has been said earlier, the balance of convenience also suggests that the court at Kanpur should be the most convenient court to try these two suits. Therefore, we allow this transfer petition and direct that the file of OS No. 166 of 1993 titled Ajanta Services (P) Ltd. v. Murray & Co. (P) Ltd. pending in the Calcutta High Court be transferred to the file of the Civil Judge, Nagar, Kanpur so that the same is tried along with the suit No. 649 of 1993 Murray & Co. (P) Ltd. v. Madanlal Poddar. Transfer Petition is allowed accordingly. No costs.
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