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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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Re Introductions, Ltd. Introductions, Ltd. v. National Provincial Bank Ltd. [1969]

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Re Introductions, Ltd. Introductions, Ltd. v. National Provincial Bank Ltd. [1969] Case Summary Introduction  A bank with full knowledge of the objects and power mentioned in the MoA of a company provided a sum of credit. On a simple reading of the clause of MoA, the bank satisfied itself that the company is empowered to borrow but they further did not enquire and provide credit to the company. The Court observed that the clauses of the MoA based on which the bank gave the loan were not an object but only a power, and that should be used for the particular purpose or object mentioned in the MoA. The power to borrow can not be an object of a company. Facts   The appellant company was incorporated in 1951 to provide facilities for British festivals to people who come from abroad. Subsequently, for some years, the company connected its business with deck chairs at a seaside resort. In 1961 the company transferred its share and elected a new board who decided to be involved in the
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In re (Jon) Beuforte (London) Ltd. (1953)

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Introduction This case is related to the "Doctrine of Ultra vires" which states that a company cannot perform act beyond the scope of its stated objects in the "Memorandum of Association".  Facts   A company was authorized by the memorandum to carry on the business of costumiers, gown making, and other activities ejusdem generis  (of the same kind). The company decided to undertake the business of making veneered panels and for this purpose, the company made three contracts with  Grainger Smith & Co. (Builders) Ld. to construct a factory. John Wright & Sons (Veneers) Ld. to supply veneers Lowell Baldwin Ld. to supply coke The three creditors filed a suit in court when their demand for respective payments failed. The company consented, in court, to pay them in different installments. But again the company failed to pay. Later when the company went on to liquidation, all three creditors filed their proof to recover their respective payments. The li
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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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