This given case of Kondoli Tea Co. Ltd. dealt with a concept which at that time, that is 1886 was new to India and the idea of separate legal entity was introduced for the first time in India. This fundamental feature of separate legal entity of a company was duly required to be introduced in the Indian Company Law.
The Hon’ble Supreme Court in this case differentiated between a ‘party’ to an arbitration agreement and a nominee of a party. It rejected the contention that an arbitration clause may bound a non-signatory by virtue of its ‘conduct’.
In this case it was held that as per the company's articles of association, it may pass a special resolution to reduce its share capital or any premium account in any way and subject to any incident authorized and consent required by law.
The court interpreted this case by using the principle of statutory interpretation of harmonious construction. It is a cardinal rule of construction that is used when in a statue two provisions are in conflict with each other, that both of them should stand together, they are interpreted so that the effect can be given to both.
This article discusses the nature of a company as a separate legal personality under the Company law. This article also studies the doctrine of corporate personality and examines if a company can sue and be sued by the public.
This article studies the definition, role of the Chief Executive Officer of a company as the Key Managerial Personnel. This article also discusses when a Chief Executive Officer of a company can be a member of the Board.