Notable Company Law Judgments: March 2023

I am returning with the fourth monthly roundup of important High Court judgments on Company Law. Finding judgments for March was a bit difficult, as most were one-page withdrawals or cases concerning pending liquidation proceedings before the High Courts. Yet, I could find a few, mainly from the Calcutta High Court, with elements of the law of crimes.

Here are the important Company Law judgments from March:

1.???Relief for a Director in a Sec. 420 IPC case

Forum: High Court at Calcutta, appellate side

Citation: CRR 419 of 2019

Decided on:?March 31, 2023

A Proceeding pending before the Chief Judicial Magistrate, Purba Medinipur, under Sec. 406 (criminal breach of trust), Sec. 420 etc., was challenged by the Petitioner, an employee of the Company allegedly involved in financial fraud. This became the basis of another FIR lodged at a Police Station.

A Company promised gullible investors that their money would double quickly if they invested in its scheme. The Complainant invested a significant amount for a fixed period, but the Company failed to return it. The Investors deposited certain original receipts with the Petitioner – an employee of the Company. On approaching the registered office, it was found locked, leading to these proceedings. The Sec. 406 case was lodged against the Petitioner, alleging he was the Director of the Company.

Petitioner’s lawyers provided the RoC and MCA records to show that the Petitioner was not a Director. Satisfied with this and other documentary evidence, the High Court quashed the proceedings.

2.???Testamentary matters + Company Law

?Forum: Calcutta High Court

Citation: IA NO. GA/1/2021 in PLA/327/2021

Decided on: March 14, 2023

While reading this case, I understood the complexities of probate matters. On googling further, this extended to the problems faced by individuals wanting to make a living will.

The case, in short, involves a family dispute involving the benefits / of the probate grant arising from a deceased person's alleged will. What follows is an interesting factual matrix of the matter and some family law elements.

3.???Two warring Life Partners, the Hindu Marriage Act and the elements of Company Law

Forum: Calcutta High Court

Citation: CRR 107 of 2021 with CRAN 4 of 2021 and CRAN 5 of 2021

Decided on March 03, 2023

This one is quite an interesting case. Involving elements of life partners allegedly defrauding each other and other creditors, one allegedly blindly having faith in the other etc. The judge concluded that the present Suit was initiated only after the marital relations deteriorated between the Parties.

4.???IPR - Dispute over the Company name, a difference of opinion between two brothers

Forum: Madras High Court

Citation: W.P.No.5271 of 2017 & WMP.Nos.5586 & 5587 of 2017

Decided: March 03, 2023

Two brothers appear to be at loggerheads. One wants to prevent the usage of a name (registered as a Trademark) by the other. After some legal action, one approaches the RoC to rectify the Company name incorporated by the other. A Writ of Prohibition is filed at the Madras High Court against the RoC, asking it not to exercise jurisdiction. The other side says the IPR suit is pending; therefore, no further action is warranted.

5.???Chit-fund scams refuse to go, so Courts remain busy

Forum: High Court of Jharkhand at Ranchi

Citation: Cr. M. P. No. 398 of 2021 with Cr. M. P. No. 1172 of 2018

Pronounced on: March 17, 2023

The Central Bureau of Investigation is investigating an investment scheme that violated the law governing prize chits. The question before the Court is whether interlocutory orders of stay will affect the jurisdiction of a High Court to hear and dispose of certain petitions. There is a company law element as well.

That’s it for this edition. For past issues, click the following links:

December 2022

January 2023

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