Orchid Container Line (Thailand) Co Ltd v. IAPL Group & Ors.

Delhi High Court · 02 Sep 2021 · 2021:DHC:2712-DB
Manmohan; Navin Chawla
FAO (OS) (COMM) 114/2021
2021:DHC:2712-DB
civil appeal_dismissed

AI Summary

The Delhi High Court dismissed the appeal challenging the validity of a compromise decree, holding that internal disputes among company directors cannot be adjudicated in the suit and no enforceable right was lost by the appellant.

Full Text
Translation output
FAO (OS) (COMM) 114/2021
HIGH COURT OF DELHI
FAO(OS) (COMM) 114/2021 & C.M.Nos.29274-29275/2021
ORCHID CONTAINER LINE(THAILAND)CO LTD ..... Appellant
Through Mr.Milin Garg, Advocate.
VERSUS
IAPL GROUP & ORS. ..... Respondents
Through None
Date of Decision: 02nd September, 2021
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE NAVIN CHAWLA
JUDGMENT
MANMOHAN, J: (Oral)

1. Present appeal has been filed challenging the orders dated 12th August, 2021 and 12th April, 2021 passed by learned Single Judge in CS (Comm) No. 162/2021.

2. Learned Counsel for the Appellant states that the learned Single Judge dismissed the application of the Appellant seeking declaration of the compromise decree dated 12th April 2021 as null & void ab initio and nonest in the eyes of law without a trial. He submits that Mr. Mithilesh Kumar wrongfully claimed to be an authorised representative of the Appellant, who without attempting to resolve the inter-se disputes, had chosen to tender a fraudulent and non-est undertaking before the learned Single Judge of Court in the capacity of Director of Appellant and got the matter settled without 2021:DHC:2712-DB FAO (OS) (COMM) 114/2021 consideration and estopped the Appellant from claiming and enforcing his rights.

3. This Court is of the view that the arguments advanced by learned counsel for the Appellant prove beyond doubt that there is an inter-se dispute between the Directors of the Appellant – a dispute which cannot be resolved or adjudicated in the suit filed by the plaintiffs/respondents. Such an inter-se suit between the Directors would not be barred under Order XXIII Rule 3A CPC.

4. It is also not understood as to what enforceable right the Appellant has lost by way of the impugned order dated 12th April, 2021. It is pertinent to mention that the learned Single Judge in the order dated 12th August, 2021 has held that it has not passed a compromise decree in the said suit.

5. Consequently, the present appeal along with pending applications being bereft of merit is dismissed. MANMOHAN, J NAVIN CHAWLA, J SEPTEMBER 02, 2021 KA