Role of Civil Court in Company Law Matters
By Team Legistify / 2016-04-01
In modern days, in almost every legal systems the civil disputes are resolved by the courts of civil jurisdiction. As a rule, the civil courts can take cognizance of every controversy of civil nature as the court of ultimate jurisdiction but there are some recognized exceptions to this general rule. This rule has been applied in Company Law Matters also.

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Common law courts take cognizance of the considerable number of suits of common nature with the exception of few of which the purview is particularly removed. In India, the working of the common court is guided by the Code of Civil Procedure, 1908.

A suit in which the privilege to property or to an office is challenged is a suit of a common nature, despite that such right might depend completely on the choices of inquiries as to religious customs or functions.

It can be deduced from the over that the common courts can arbitrate upon every one of the suits of common nature with the exception of those where the purview has been explicitly or impliedly banished. The expression 'explicitly or impliedly banned' has been examined by courts in a few cases and now it is settled rule that the locale can be banished either through an express procurement under any statute or by the authoritative aim which is obviously inferred from the statute.

In State v. Mask and Co. , the Privy Council stated that 'it is settled law that the prohibition of the purview of the common court is not to be promptly gathered, but rather that such avoidance should either be communicated or unmistakably suggested." From the recognition of the Privy Council, it is clear that the position in connection to the purview of the common court was clarified in the absolute starting point. Talk to the best corporate lawyers in India to know more.

The Supreme Court of India talked about the matter much later in the year 1963 on account of Radha Kishan v. Ludhiyana Municipality wherein it was held that:

In modern days, in almost every legal systems the civil disputes are resolved by the courts of civil jurisdiction. As a rule, the civil courts can take cognizance of every controversy of civil nature as the court of ultimate jurisdiction but there are some recognized exceptions to this general rule. This rule has been applied in Company Law Matters also.

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Get connected to the Best Lawyers and Chartered Accountants Near You!


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