P. PUNNIAH versus JEYPORE SUGAR CO. LTD. AND ORS.

P. PUNNIAH versus JEYPORE SUGAR CO. LTD. AND ORS.

Consent given by a GPA holder on behalf of a member constitutes valid consent under Section 399(3) of the Companies Act, 1956, in the absence of express or implied statutory requirement to the contrary.

Source-derived case information.

Parties
Appellant: P. Punniah; Respondent: Jeypore Sugar Co. Ltd.; Respondents: Directors of Jeypore Sugar Co. Ltd.
Jurisdiction
India
Judgment Date
06 April 1994
Procedural Posture
Civil Appeal / Appeal From Judgment and Order of Orissa High Court
Outcome
Appeal allowed; orders of Company Judge and Division Bench set aside
Legal Topics
Shareholders' Rights, Oppression and Mismanagement, Agency and Power of Attorney, Requirements for Consent Under Companies Act
Company Law Shareholders' Rights Oppression and Mismanagement Agency and Power of Attorney Requirements for Consent Under Companies Act

Source-derived case record

Summary, issues, holding and outcome

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Parties

P. Punniah

Appellant

Jeypore Sugar Co. Ltd.

Respondent

Directors of Jeypore Sugar Co. Ltd.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Order of Orissa High Court

Legal Issues

  1. 1 Whether consent given by a General Power of Attorney (GPA) holder on behalf of a company member is valid for applying under Sections 397/398 of Companies Act, 1956
  2. 2 Whether Section 399(3) Companies Act, 1956 requires personal consent of the member or admits agency

Ratio Decidendi

Consent given by a GPA holder on behalf of a member constitutes valid consent under Section 399(3) of the Companies Act, 1956, in the absence of express or implied statutory requirement to the contrary.

Court Disposition

Appeal allowed; orders of Company Judge and Division Bench set aside

Orders

  • Consent given by first appellant on behalf of Smt. Rajeshwari as GPA holder is valid under Section 399(3)
  • Preliminary objection to maintainability of application under Section 397/398 is unsustainable