Law: Civil Procedure Code (V of 1908)

Section: O. XXIII, r. 1

(a) Civil Procedure Code (V of 1908) O. XXIII, r. 1-Withdrawal of suit-Director of Company-Stands in fiduciary capacity to company concerned-Withdrawal of suit in interest of company-Director under duty to withdraw suit parti cularly when supported by majority of shareholders. A Director stands in a fiduciary capacity to the company of which he is a Director, and if it is in the interest of a company to withdraw a suit filed by it, it is the duty of its Directors to do so. The application is supported by the majority of the "company's shareholders". Manzoor Hussain v. Wali Muhammad P L D 1965 S C 425 ref. (b) Civil Procedure Code (V of 1908)  O. XXIX, r. I-Suit by corporation-Pleadings, verification of No distinction drawn by rule between plaints and pleadings - Director found entitled to file plaint on company's behalf competent to withdraw suit on behalf of such company-Fact of Director not signing application separately for himself and for company - A breach of technical rule at highest. If a Director was competent, under Order XXIX to file a suit on behalf of a company, he was entitled to withdraw that suit. Order XXIX, rule 1 does not draw any distinction between plaints and other pleadings in a suit, and as the finding that the Director was entitled to file the plaint on behalf of the company has become final, it follows that he is competent to withdraw the suit on behalf of the company. Nor does anything turn on the fact that the Director has not signed the application separately for himself and for the company, as, at the highest, this would be a breach of a technical rule. When an interim receiver is appointed to manage the affairs of a company, the appointment should be only for the period absolutely neces sary for enabling the directors and/or the members of the company to resolve their deadlock, and further there is no reason why such appointment should imply the suspension of a Company's Board of Directors during the pendency of litigation, the moreso in view of the law's delays. Mohini Das v. Bungal Das I L R 17 Cal. 380 ref. (c) Civil Procedure Code (V of 1908)  O. XXIII, r. I & O. XL, r. 1-Order XXIII, r.…