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M/s. Rajasthan Hospitals Ltd. & Others v/s Mahaveer Prasad Jaipuria & Others


Company & Directors' Information:- RAJASTHAN HOSPITALS LTD. [Active] CIN = U85110RJ1989PLC004867

Company & Directors' Information:- S V S HOSPITALS PRIVATE LIMITED [Active] CIN = U85110TG2007PTC052534

Company & Directors' Information:- D D HOSPITALS PRIVATE LIMITED [Active] CIN = U85110TN2009PTC073765

Company & Directors' Information:- A AND E HOSPITALS PRIVATE LIMITED [Active] CIN = U85110KL2003PTC016562

Company & Directors' Information:- PRASAD HOSPITALS INDIA PRIVATE LIMITED [Active] CIN = U85100TG2010PTC067167

Company & Directors' Information:- R R HOSPITALS PRIVATE LIMITED [Active] CIN = U85100HR2011PTC042705

Company & Directors' Information:- K P S HOSPITALS PRIVATE LIMITED [Active] CIN = U85110TZ1994PTC004918

Company & Directors' Information:- B R S HOSPITALS PRIVATE LIMITED [Active] CIN = U85110TN1988PTC016237

Company & Directors' Information:- V H M HOSPITALS PRIVATE LIMITED [Active] CIN = U85110TN2009PTC073497

Company & Directors' Information:- D B R HOSPITALS PRIVATE LIMITED [Active] CIN = U85110TG2003PTC041648

Company & Directors' Information:- S M R HOSPITALS PVT LTD [Strike Off] CIN = U85110DL2005PTC143152

Company & Directors' Information:- M S R HOSPITALS PRIVATE LIMITED [Active] CIN = U85110AP1994PTC017731

Company & Directors' Information:- M M HOSPITALS PRIVATE LIMITED [Under Process of Striking Off] CIN = U85110UP1993PTC015371

Company & Directors' Information:- MAHAVEER INDIA PRIVATE LIMITED [Active] CIN = U24100CT2008PTC020737

Company & Directors' Information:- K C HOSPITALS PRIVATE LIMITED [Strike Off] CIN = U85110PB2012PTC035880

Company & Directors' Information:- B M HOSPITALS PRIVATE LIMITED [Active] CIN = U85110TN2005PTC058062

Company & Directors' Information:- S A HOSPITALS LIMITED [Strike Off] CIN = U85110MH2002PLC136697

Company & Directors' Information:- JAIPURIA LIMITED [Strike Off] CIN = U45400DL2012PLC232135

Company & Directors' Information:- M. B. HOSPITALS PRIVATE LIMITED [Active] CIN = U85100HR2010PTC041489

Company & Directors' Information:- M G M I HOSPITALS (INDIA) PRIVATE LIMITED [Active] CIN = U85195KA2010PTC052058

Company & Directors' Information:- M AND D HOSPITALS PRIVATE LIMITED [Active] CIN = U85110DL2002PTC117618

Company & Directors' Information:- M. R. HOSPITALS PRIVATE LIMITED [Strike Off] CIN = U85110UP1995PTC018165

Company & Directors' Information:- S P HOSPITALS PVT LTD [Strike Off] CIN = U85110HP1992PTC012651

Company & Directors' Information:- V K R HOSPITALS PRIVATE LIMITED [Strike Off] CIN = U85110TG2011PTC075009

Company & Directors' Information:- JAIPURIA HOSPITALS PRIVATE LIMITED [Strike Off] CIN = U85110DL2005PTC141057

Company & Directors' Information:- V P HOSPITALS PRIVATE LIMITED [Active] CIN = U85110DL2011PTC220548

Company & Directors' Information:- G S HOSPITALS PRIVATE LIMITED [Active] CIN = U85100AP2014PTC094902

    Civil First Appeal No. 140 of 2015

    Decided On, 13 June 2016

    At, High Court of Rajasthan Jaipur Bench

    By, THE HONOURABLE MR. JUSTICE PRASHANT KUMAR AGARWAL

    For the Appellants: S.P. Sharma, Senior Advocate, R.P. Garg, Advocate. For the Respondents: Sudhanshu Kasliwal, Senior Advocate with Suruchi Kasliwal, Advocate.



Judgment Text

1. By way of this order following four applications are being decided:-

(1) Application dated 23.4.2016 (Inward No. 10367) under Section 151CPC filed by respondent No. 3-Mahaveer Jaipuria Medical Foundation Trust with a prayer to restore possession of the suit property to it. Reply to the application has been filed by the appellants on 19.5.2016.

(2) Application dated 19.5.2016 (Inward No. 12895) under Section 151CPC filed by the appellants for withdrawal of the present appeal as well as civil suit out of which the appeal has arisen. Reply to this application has been filed by respondent No. 3 on 31.5.2016.

(3) Application dated 24.5.2016 (Inward No. 13220) under Order 41, Rule 27read with Section 151CPC filed by respondent No. 3 for production of additional documents in support of application for restoration of possession.

(4) Application dated 01.06.2016 (Inward No. 14078) under Order 41, Rule 27read with Section 151CPC filed by respondent No. 3 for production of some more additional documents in support of application for restoration of possession.

All these applications have been filed in the present appeal whereby the plaintiff-appellants have challenged the judgment and decree dated 24.2.2015 passed by the Additional District Judge No. 19, Sanganer, Jaipur Metropolitan, Jaipur in Civil Suit No. 447/2013 whereby the learned trial Court allowed the application under Order 7, Rule 11CPC filed by respondent-defendant-Dr. G.L. Purohit and dismissed the suit filed by the appellants for declaration, permanent injunction and mandatory injunction.

2. Brief relevant facts for the disposal of these applications may be stated as below:-

(i) With the sanction dated 8.12.1989 of State of Rajasthan, land measuring five acres comprising in Khasra No. 527 and 528 was leased-out for a period of 99 years for establishment of super speciality hospital by Mahaveer Jaipuria Medical Foundation Trust (respondent No. 3-herein) in favour of appellant-M/s Rajasthan Hospitals Ltd. (registered company) and in this regard a registered sub-lease-deed dated 25.6.1992 was also executed between the parties and possession of the land was handed over to appellant-Rajasthan Hospitals Ltd.

(ii) The said hospital could not be established and made functional by the appellant-company by one reason or the other although maps for construction were approved by the Jaipur Development Authority and some amount of money was also invested.

(iii) Respondent No. 3 Mahaveer Jaipuria Medical Foundation Trust and others filed Civil Suit No. 10/2015 (Old No. 125/1999) for cancellation of the said sub-lease on 15.1.1999 against appellant M/s Rajasthan Hospitals Ltd. on the ground that hospital has not been established within the stipulated period. Directors of the appellant-company including Dr. G.L. Purohit were also made party-defendant in that suit.

(iv) Appellant-Dr. S.S. Agarwal and others filed a Company Petition No. 53/2008 before Company Law Board which was allowed vide order dated 26.8.2013 and respondent Dr. G.L. Purohit was removed as director of the appellant-company.

(v) Against the order dated 26.8.2013, S.B.Company Appeal No. 12/2013 was filed in the Rajasthan High Court by the appellant-Rajasthan Hospitals Ltd. and respondent Dr. G.L. Purohit and in this appeal during the course of hearing an application for withdrawal of the appeal was filed and the same was decided by a learned Single Bench vide order dated 29.6.2015 and appellant-M/s Rajasthan Hospitals Ltd. was ordered to be transposed as respondent from the array of appellant in the said company appeal.

(vi) Respondent-Dr. G.L. Purohit was removed as director of the appellant-company by a resolution dated 30.9.2013 of Board of Directors and his power of attorney was also withdrawn in a meeting held on 21.10.2013 of the Board of Directors of the appellant-company.

(vii) Civil Suit No. 447/2013 was filed on 27.11.2013 by the present appellants against respondents for declaration, permanent injunction and mandatory injunction in the Court below. On the basis of application under Order 7, Rule 11CPC filed by respondent-defendant-Dr. G.L. Purohit, vide order dated 24.2.2015 suit was dismissed against which present first appeal has been filed.

(viii) A demand for Urban Development and House Tax was made against the appellant-company by Jaipur Municipal Corporation and the suit property was sealed by it on 9.5.2014 on account of non-payment of aforesaid taxes.

(ix) Respondent No. 3-Mahaveer Jaipuria Medical Foundation Trust challenged the demand notice dated 21.4.2014 and attachment order dated 9.5.2014 issued by the Jaipur Municipal Corporation by way of S.B.Civil Writ Petition No. 6489/2014 before this Court but the same was dismissed by a learned Single Bench vide order dated 18.2.2016 on the ground that respondent No. 3-Mahaveer Jaipuria Medical Foundation Trust is not an aggrieved person. It was also observed by learned Single Bench that appellant-company is in lawful possession of the suit property.

(x) An amount of Rs. 44,93,554/- was deposited by the appellant-Dr. S.S. Agarwal as director of the appellant-company i.e. Rajasthan Hospitals Ltd. as Urban Development Tax on 28.3.2016 in Jaipur Municipal Corporation for the period 2007-2016. Similarly, an amount of Rs. 1,56,132/- was also deposited by Dr. S.S. Agarwal on 28.3.2016 as House Tax for the period 2003-2007.

(xi) In Civil Suit No. 10/2015 (Old No. 125/1999), an application under Order 23, Rule 3CPC came to be filed with the averment that the parties have settled their dispute and they have entered into compromise and it was prayed that the compromise may be taken on record and it may be attested and the aforesaid suit may be decreed in favour of respondent No. 3-Mahaveer Jaipuria Medical Foundation Trust. Appellant-Dr. S.S. Agarwal also filed an application under Order 1, Rule 10read with Order 22, Rule 10CPC in the aforesaid suit with a prayer that he may be substituted as defendant in place of Dr. G.L. Purohit. Learned Additional District Judge No. 14, Jaipur Metropolitan, Jaipur vide order dated 7.12.2015 refused to accept and verify the compromise by observing that it is not legal and bona fide and it has been entered into by defendant-Dr. G.L. Purohit without any legal authority. This contention of Mahaveer Jaipuria Medical Foundation Trust was also not accepted by the Court that possession of the suit property has been handed over to it. By the same order learned Additional District Judge allowed application filed by Dr. S.S. Agarwal under Order 1, Rule 10read with Order 22, Rule 10CPC and he was ordered to be substituted as defendant in the aforesaid suit in place of Dr. G.L. Purohit.

(xii) Order dated 7.12.2015 passed by Additional District Judge No. 14, Jaipur Metropolitan, Jaipur in Civil Suit No. 10/2015 (Old No. 125/1999) has been challenged by Mahaveer Jaipuria Medical Foundation Trust and others before Rajasthan High Court in S.B. Civil Revision Petition No. 44/2016. It is an admitted position that no stay order has been passed in the revision petition.

(xiii) In this appeal vide order dated 01.04.2015 status quo in respect of possession of suit property was passed and it was extended vide order dated 9.4.2015.

(xiv) Amended plaint has been filed by Mahaveer Jaipuria Medical Foundation Trust on 25.3.2016 in Civil Suit No. 10/2015 (Old No. 125/1999) with a prayer that M/s Rajasthan Hospitals Ltd. may be removed from the possession of the suit property and possession of the same may be restored to the trust.

(xv) After aforesaid Urban Development and House Tax was deposited by the appellant-company in Jaipur Municipal Corporation, a letter dated 11.4.2016 was issued by the Corporation, stating therein that the seal over the suit property has been removed and possession of it has been handed over to the appellant-company through its present Director/Chairman.

(xvi) Observation regarding lawful possession of the suit property with appellant-Rajasthan Hospitals Ltd. made in S.B.Civil Writ Petition No. 6489/2014 vide order dated 18.2.2016 was challenged by Mahaveer Jaipuria Medical Foundation Trust in D.B.Civil Appeal No. 494/2016 but the same was dismissed vide order dated 25.3.2016 but liberty was granted to the respondent to file appropriate application about clarification of order dated 18.2.2016. In pursuance of the liberty so given, requisite application has already been filed, but it is still pending.

During the course of appeal aforesaid four applications came to be filed, which are being considered and decided by this common order:

Application dated 24.5.2016 (Inward No. 13220)

3. By way of this application respondent No. 3 has prayed for production of some additional documents in support of application for restoration of possession of suit property to it.

4. On consideration of submissions made on behalf of the respective parties and the material made available on record and more particularly looking to the controversy between the parties and the nature of documents filed along with the application, the same is allowed and documents filed along with the application are taken on record and it is ordered that these documents will also be taken into consideration for disposal of application filed by the respondent No. 3 for restoration of possession of suit property to it.

Accordingly, application stands allowed and disposed of.

Application dated 01.06.2016 (Inward No. 14078)

5. By way of this application respondent No. 3 seeks production of some more documents in support of application for restoration of possession of suit property.

6. On consideration of submissions made on behalf of the respective parties and the material made available on record and more particularly looking to the controversy between the parties and the nature of documents filed along with the application, the same is allowed and documents filed along with application are taken on record and it is ordered that these documents will also be taken into consideration for disposal of application filed for restoration of possession of suit property.

Accordingly, application stands allowed and disposed of.

Application dated 23.4.2016 (Inward No. 10367)

7. By way of this application filed under Section 151CPC respondent No. 3-Mahaveer Jaipuria Medical Foundation Trust has made a prayer for restoration of possession of suit property to it by alleging that the possession was handed over to it by the appellant-company through its Director-Dr. G.L. Purohit at the time of execution of compromise on 12.11.2013 and since then the trust was in continuous peaceful possession over the suit property but in the afternoon of 29.3.2016, the trust was forcefully dispossessed from its possession despite order of status quo dated 1.4.2015 and 9.4.2015 passed by the Court in this appeal.

This application filed by the respondent is liable to be dismissed for the following reasons:-

(i) It is an admitted fact that possession of the suit property was handed over to appellant-M/s Rajasthan Hospitals Ltd. by respondent-Mahaveer Jaipuria Medical Foundation Trust at the time of execution of registered sub-lease-deed dated 25.6.1992.

(ii) After order dated 26.2.2013 passed by the Company Law Board in Company Petition No. 53/2008 and resolution dated 30.9.2013 of the Board of Directors of the company for removal of Dr. G.L. Purohit as director of the company and withdrawal of his power of attorney vide resolution dated 29.10.2013 by the Board of Directors of the company, Dr. G.L. Purohit had no authority to enter into compromise with the respondent trust and hand over possession of the suit property to it or admit that possession of the suit property has been handed over to the trust. Unless and until, order dated 26.2.2013 of the Company Law Board and the resolutions of Board of Directors are not set aside and quashed, compromise dated 12.11.2013 and admission of Dr. G.L. Purohit carries no value and it cannot be a relevant evidence in support of the claim of the respondent trust that possession of the suit property was handed over to it by Dr. G.L. Purohit on behalf of the appellant-company.

(iii) While refusing to take on record and attest the compromise dated 12.11.2013, Additional District Judge No. 14, Jaipur Metropolitan, Jaipur vide order dated 7.12.2015 passed in Civil Suit No. 10/2015 (Old No. 125/1999) has not accepted contention made on behalf of the respondent that possession of the suit property has been handed over to it. Unless and until this finding of the Court is not quashed and set aside in the revision petition so filed, it stands as now.

(iv) After order dated 7.12.2015 whereby application for attestation of compromise was dismissed and application under Order 1, Rule 10read with Order 22, Rule 10CPC filed by appellant-Dr. S.S. Agarwal was allowed by Additional District Judge No. 14, Jaipur Metropolitan in Civil Suit No. 10/2015 (Old No. 125/1999), amended plaint has been filed by the respondent-Mahaveer Jaipuria Medical Foundation Trust with a prayer that appellant-M/s Rajasthan Hospitals Ltd. may be removed from the possession of the suit property and the trust may be put in possession thereof and this is clear admission on the part of the respondent that it was not in possession and this falsify its claim that possession was handed over to it by Dr. G.L. Purohit at the time of entering into compromise.

(v) This admission on the part of the respondent also shows that respondent was not in possession of the suit property on 1.4.2015 and 9.4.2015 when order to maintain status quo about possession of suit property was passed in this appeal and it also falsify the stand of the respondent that it was forcefully dispossessed by the appellant on 29.3.2016 with the help of the police. None of the documents prepared during the course of proceedings initiated under Section 107Cr.P.C., which have been produced as additional documents, supports the claim of the respondent that it was in possession of the suit property on 29.3.2016.

(vi) Learned Single Judge in S.B.Civil Writ Petition No. 6489/2014 has observed that appellant-Rajasthan Hospitals Ltd. is in lawful possession of the suit property. Unless and until this observation of the Court is not expunged it stands as now.

(vii) On Urban Development and House Tax being paid by the appellant-company in Jaipur Municipal Corporation on 28.3.2016, a letter dated 11.4.2016 came to be issued by the Corporation to the effect that seal fixed on the suit property has been removed and possession thereof has been handed to appellant-company through its present Director/Chairman.

8. Otherwise also, from the material available on record and on consideration of submissions made on behalf of the respective parties, it cannot be said that the respondent-trust was in undisputed possession of the suit property and it was dispossessed from it on 29.3.2016 i.e. after order of status quo dated 1.4.2015 and 9.4.2015 were passed in this appeal and, therefore, order of restoration cannot be made merely on the basis of aforesaid application.

9. In the considered view of this Court, the question can properly be decided only after recording evidence and the respondent has already sought relief of restoration of possession in Civil Suit No. 10/2015 (Old No. 125/1999) filed by it.

Consequently, the application is dismissed.

Application dated 19.5.2016 (Inward No. 12895)

10. By this application filed under Section 151CPC, appellants have prayed for withdrawal of appeal as well as civil suit out of which this appeal has arisen.

11. It was submitted by learned counsel for the appellants that the present suit was filed by them with the averment that respondent-Dr. G.L. Purohit is no more a director of the appellant-company as per order of the Company Law Board but he with connivance with other respondents without any authority and fraudulently has entered into compromise on 12.11.2013 and has filed it in the Court of Additional District Judge No. 14 in Civil Suit No. 10/2015 (Old No. 125/1999) and he in connivance with other respondents may hand over possession of the suit property to Mahaveer Jaipuria Medical Foundation Trust. It was further submitted that in the suit relief for permanent injunction, declaration and mandatory injunction was sought against the respondents, but due to following subsequent events now the suit has become in fructuous and the decree sought by the appellants is no more require to be passed:-

(i) Additional District Judge No. 14, Jaipur Metropolitan, Jaipur in Civil Suit No. 10/2015 vide order dated 7.12.2015 has refused to accept and attest the compromise dated 12.11.2013 fraudulently entered into between the respondents and appellant-Dr. S.S. Agarwal has been substituted as defendant in the suit in place of Dr. G.L. Purohit.

(ii) A learned Single Bench in Company Appeal No. 12/2013 vide order dated 29.6.2015 has observed that respondent-Dr. G.L. Purohit was not empowered to enter into compromise and appellant-M/s Rajasthan Hospitals Ltd. has been ordered to be transposed as respondent in that appeal.

(iii) Writ Petition No. 6489/2014 filed by the respondent-Mahaveer Japuria Medical Foundation Trust has been dismissed by the High Court vide order dated 18.2.2016 with the observation that suit property is in the lawful possession of M/s Rajasthan Hospitals Ltd.

(iv) Appellant-M/s Rajasthan Hospitals Ltd. having deposited the entire land development and house tax in Jaipur Municipal Corporation, seal over the suit property has been removed and possession of the same has been handed over by Jaipur Municipal Corporation to appellant-company and since then it is in the peaceful possession of the suit property.

(v) Amended plaint has been filed by the respondent-Mahaveer Jaipuria Medical Foundation Trust in Civil Suit No. 10/2015 (Old No. 125/1999) on 25.3.2016 with a prayer for restoration of possession of suit property to it and removal of M/s Rajasthan Hospitals Ltd therefrom.

(vi) Present suit has been dismissed by the Court below not on merits but on the basis of an application under Order 7, Rule 11filed by respondent-Dr. G.L. Purohit. No right of any kind as accrued in favour of respondents merely on account of dismissal of the suit.

12. It was submitted by the learned counsel for the appellants that appeal being continuous of suit, due to aforesaid subsequent events they have become infructuous and, therefore, plaintiff-appellants may be permitted to withdraw this appeal as well as the suit with observation that impugned order dated 24.2.2015 would not come in their way in future.

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r />13. On the other hand, it was submitted by learned counsel for the respondents that application under Section 151CPC for withdrawal of appeal and suit is not maintainable as there is specific provision under Order 23, Rule 3CPC for such relief. It was further submitted that suit cannot be permitted to be withdrawn as a matter of routine unless sufficient grounds are shown by the plaintiff to the satisfaction of the Court and in the present case no such grounds are shown by the plaintiff-appellants. It was also submitted that before granting permission for withdrawal, it is incumbent upon the Court to satisfy itself that any vested right of the defendant is not destroyed by way of withdrawal of the suit. According to learned counsel for the respondents on dismissal of the suit so much right has been vested in the respondents that plaintiff-appellants are precluded to file fresh suit for the same relief. 14. Having considered the submissions made on behalf of the respective parties and having regard to the material made available on record as well as the grounds shown by the appellants in support of their prayer for withdrawal, I do not see any reason not to grant permission as sought by them. It is pertinent to observe that the suit has not been decided on merit, but it was dismissed as application under Order 7, Rule 11CPC filed by respondent-Dr. G.L. Purohit was allowed and, therefore, there is no question that any vested rights accrued in favour of the respondents would be destroyed in case permission to withdraw the appeal and the suit is granted. 15. Consequently, the application dated 19.5.2016 (Inward No. 12895) filed under Section 151CPC for withdrawal of appeal as well as suit is allowed and S.B.Civil First Appeal No. 140/2015 and Civil Suit No. 447/2013 filed in the Court of Additional District Judge No. 19, Sanganer, Jaipur Metropolitan, Jaipur are dismissed as withdrawn with the observation that judgment and decree dated 24.2.2015 passed in the aforesaid suit would not adversely affect any other rights of the plaintiff-appellants. Appeal dismissed.
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