Order 14 of the Code of Civil Procedure, 1908 provides that issues are raised when a material proposition of fact or law is affirmed by one party and denied by the other. Rule 1(2) provides that material propositions are those propositions of law or fact which a plaintiff must allege in order to show a right to sue or a defendant must allege in order to constitute his defence. Sub-rule 3 provides that each material proposition affirmed by one party and denied by the other shall form the subject of a distinct issue. The issues are of 2 kinds. (i) issues of fact and (ii) issues of law. In the present case there is an assertion of material proposition of fact to the effect that according to the Petitioner/Plaintiff, the Respondent/-Defendant had fraudulently procured an order in proceedings under the Indian Companies Act, 1956 for reducing share capital to Rs. 75 Lakhs solely with a view to get protection under the umbrella of the Maharashtra Rent Control Act, 1999. This material proposition of fact has been denied by the Respondent. The amended plaint also raises the material proposition of law in as much as one of the question which would arise in such situation is : when the 1999 Act came into force on 30th March, 2000, the share capital of the Respondent was admittedly more than Rs. One Crore and, thereafter, but before the filing of the Suit the same has been reduced with retrospective effect to Rs. 75 Lakhs w.e.f. 1/4/1999. The legal effect of such a reduction has to be considered by the Trial Court and therefore even this material proposition of law gives rise to an issue of law which also arises.
IN THE HIGH COURT OF BOMBAY
Writ Petition No. 8355 of 2011
Decided On: 21.10.2011
Depe Global Shipping Agencies Pvt. Ltd. Vs. MPIL Corporation Ltd.
Hon'ble Judges/Coram:
G.S. Godbole, J.
Citation: 2012(2) MHLJ 318
