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M.N. Clubwala v. Fida Hussain Saheb, 1964

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M.N. Clubwala v. Fida Hussain Saheb, (1964) 6 SCR 642, 651 This case interpretation/case summary is written by Ms. Swati Sharma a student at the Faculty of Law (Delhi University). If you also want to publish your articles or case interpretations/summaries, send your work to  niyamskanoon09@gmail.com . Case Details PETITIONER:  MRS. M. N. CLUBWALA AND ANR. Vs. RESPONDENT: FIDA HUSSAIN SAHEB AND ORS. DATE OF JUDGMENT: 03/02/1964 BENCH: MUDHOLKAR, J.R. SUBBARAO, K. CITATION: 1965 AIR 610 1964 SCR (6) 642 Introduction   The case of M.N. Clubwala v. Fida Hussain Saheb (1964) under the Delhi Rent Control Act is a landmark judgment that clarifies the distinction between a lease and a license and the jurisdiction of the Rent Controller. The primary issue in this case was whether the agreements between the landlord (M.N. Clubwala) and the shopkeepers (Fida Hussain Saheb) created a lease or a license.  Facts of the Case M.N. Clubwala (Landlord) used his building as market by
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Royal British Bank v. Turquand (1843-60)


 Royal British Bank v. Turquand (1843-60) 

Introduction 

The doctrine of Indoor Management also known as "Turquand rule"  originated from the case  "Royal British Bank V Turquand, 1843-60. In this case we will see how an innocent bank has been saved by the judges by following Doctrine of Indoor management. 


Facts 

The Company named  "Cameron’s Coalbrook Steam, Coal, and Swansea"  London Railway Company, had borrowed money from "Royal British Bank"  by issuing a bond which had signed by two directors under the seal of the company.The  bank after reading memorandum of association and article of association  presumed that required resolution had been passed by the company and therefore gave amount. 

Later on, when the company wound up process started, the bank asked for their payment which has been denied by official liquidator of the company on the ground that provisions mentioned in article of association had not followed by the company therefore bank appealed in the court. 

Defendant Contention 

  • As per Article of association, to issue a bond it was necessary to pass a resolution which was not passed by the company, therefore it is not a valid bond. 
Plaintiff /Bank Contention 
  • Company has to repay  amount as after reading the article of association we  presumed that the resolution has been passed in a General meeting. 
Issue 
  1. Whether the Bank will be entitle to get its payment as defendant borrowed money without passing resolution which is not permissible as per article of association ? 
Ratio Decidendi 
  • The deed of settlement limits the power of borrowing on bond by providing a compulsory step of passing a resolution in its general meeting.
  • The plaintiff were bound to know the statute and the content of the article of association or deed of settlement.
  • The plaintiff after reading the AoA was satisfied to presume that the company is  authorised to raise certain sum and there is no statutory restriction to it as to the mode of executing the power.
  • As per "JERVIS CJ"
    •  the parties dealing with the company are bound to read the statute and the deed of settlement but they are not bound to do more than it.
  • As per 'Doctrine of Indoor Management'
      •  the outsider can also presume that the company must have followed the proceedings which are required to be followed by the company as per article  of association.
Judgment 

  • The parties here, after reading the deed of settlement found that there is not a prohibition from borrowing, but a permission to do on certain condition. 
  • Therefore appeal allowed by the Court and bank will get payment as bank knew about the deed of settlement and presumed that required internal proceedings have been fulfilled. 



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Ashbury Railway Carriage and Iron Co. Ltd. v. Riche (1875)

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Ashbury railway carriage v riche|| Case Summary  Introduction   This case is related to the " Doctrine of Ultra Vires". In this case, the directors of the appellant company made an agreement with the plaintiff which was beyond the objectives, as mentioned in its MoA, of the appellant Company. Since the agreement was beyond its objectives, the appellant company repudiated the agreement later. Therefore the suit was brought by the plaintiff to recover the damages. Facts   The directors of the appellant company (Ashbury Railway Carriage) had contracted to obtain a concession from Gillon and Poeters Baerston, who obtained this right from the Belgian Government, to make a railway.  For this purpose, the directors of the appellant company again entered into a contract with Riche, a contractor, the purpose of which was to establish a société anonyme,  and as the plaintiff went on with the work, the appellant company had to pay into the hands of société anonyme,  Earlier the sharehol
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Workmen of Dimakuchi Tea Estate v. Dimakuchi Tea Estate, AIR 1958 SC 353

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Workmen of Dimakuchi Tea Estate v. Dimakuchi Tea Estate, AIR 1958 SC 353 Case Summary Introduction The case of Workmen of Dimakuchi Tea Estate v. Dimakuchi Tea Estate involved a dispute between the management of the Dimakuchi Tea Estate and its workers. This case has discussed and cleared the meaning of the expression "any person" used in S.2(K) of the Industrial Dispute Act, 1947. The Supreme Court ruled in favour of a limited interpretation of the term "any person" thereby excluding the present appellant from the ambit of the Industrial Disputes Act of 1947. This decision denied the jurisdiction of the Industrial Tribunal to adjudicate the dispute and extended the benefits and protections of the Act to the employers. Facts of the Case The dispute was raised over the termination of the service of Dr K.P. Banerjee, who was appointed as an Assistant Medical Officer in the Respondent's estate (Dimakuchi Tea Estate), on the grounds of being incompetent. Although th
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