CA IPCC Company Case Law Notes have been provided below for quick revision. This IPCC Case Law Notes was prepared by CA Anjali Shah. In our earlier post, we have provided over 20 IPCC Law Notes at one place.
Company Law Case Law Summary Notes for Nov 2016 Exam:
“The following case laws extracted from ICAI Practice Manual. Most Important and exam relevant ones were only hand picked”
B.F. Guzdar v. Commissioner of Income Tax
The Courts may ignore the corporate entity of a company where it is used for tax evasion.
Ganesh Ds Ltd.as Ram Gopal v. R.G. Cotton Mill
A firm is not a legal entity. It will be able to hold shares in a Company in the individual names of partners as joint shareholders. However, this will not apply to a “Limited Liability Partnership”.
Ashbury Railway Carriage and Iron Co. Ltd. V. Riche
A company being an artificial legal person cannot operate outside the powers given to it in its objects clause and any contract which is ultra vires shall be void ab initio.
Major General Shanta Shamsher jung V Kamani Bros. P. Ltd.
The Articles of Association of a Limited Company provided that ‘X’ shall be the Law Officer of the company and he shall not be removed except on the ground of proved misconduct. The company removed him even though he was not guilty of misconduct. The action taken by the company is valid.
Anand Bihari Lel v. Dinshaw & Co.
Where a person dealing with a company could discover the irregularity if he had made proper inquiries, he cannot claim the benefit of the rule of indoor management.
Scot v. Lord Ebury
The promoters remain personally liable on a contract made on behalf of a company which is not yet in existence. Such a contract is deemed to have been entered into personally by the promoters and they are liable to pay damages for failure to perform the promises made in the company’s name
Palaniappa vs Official Liquidator
If the directors allot shares to a minor in response to his application, without knowing that he was a minor and enter his name in the Register of Members, as soon as the company comes to know of this fact, they can cancel the allotment and strike the name of the minor off the Register of Members.
H.V. Jaya Ram Vs. ICICI Ltd
A case against a company can be filed only in the Jurisdictional court in which state the company’s registered office is situated.
Naresh Chandra Sanyal V. Calcutta Stock Exchange Association Ltd.
Articles may provide other grounds for forfeiture of shares (Grounds other than non payment of Call Money).
Re. Al Amin Seatrans Ltd.
The Secretary of the company does not have the power to call the meeting by himself by issuing notices. Unless the Secretary is specifically authorized either by the board of directors or by the articles, any meeting called by him and the business done there at it would be null and void.