Law: Civil Procedure Code (V of 1908)

Section: 14,15,5,1

Civil Procedure Code (V of 1908)--- ----O. VI, Rr. 14, 15, O.XIV R.5 & O.XXIX, R.1---Suit by Corporation---Signing of pleadings---Legal issue---Suit for recovery of money was filed by a Corporation---Defendant raised the plea that suit was filed without authorization of Board of Directors of the Corporation and was not maintainable---Validity---Objection of defendant regarding lack of authority of person who signed plaint was not only an afterthought, highly technical, remote but was irrelevant after merger of the plaintiff Corporation into another Corporation and filing of amended plaint duly signed, verified and filed by an official of the Corporation to which the plaintiff Corporation merged---Official of Corporation to which it was merged, under the resolution of its Board of Directors, was duly authorized to do the needful---High Court declined to dismiss the suit merely for want of said authorization and that too after filing of amended plaint---Suit was maintainable in circumstances. THIS ORDER PASSED BY: AZIZ-UR-REHMAN, JUSTICE:---.--- On 8-09-2016, when the above suit came-up before Court for hearing of C.M.A. No. 9854 of 2010 [U/O XIV Rule 5 C.P.C.], filed by the defendant with a prayer for framing a 'legal issue' to the effect and extent as to "whether the suit has been competently filed without authorization by the Board of Directors of Rice Export Corporation of Pakistan, [the original plaintiff], if not, its' effect" 2. The brief relevant facts leading to the above preliminary issue are as follows:- A. Rice Export Corporation of Pakistan [in short RECP], as being a registered corporation filed the instant suit for accounts, recovery of Rs.56,803,786.64 on 22.1.1996 against M/s Rahat Co., carrying on its business as handling agent at Karachi. B. Per RECP version, RECP entered into a contract bearing No. RECP-5/M M/89-90/2, on 4th January, 1990 and thereby had appointed the defendant for handling the rice crop for the years 1989- 1990. C. The defendant as per terms of the contract was required to exercise all sorts of care in respect of stocks entrusted to the defendant. Per plaintiff's stand defendant was entrusted large quantities of 'rice' of…

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