1. yes amendment will have to be made
2. No effect
3. Same as that of the old owner.
Regards
Change of ownership of litigant company
I am in litigation with one company as I was employed over there for 25 years as Manager. The company dismissed me (without any warning letter) as my spouse was in litigation with the company. During litigation, the company gave the affidavit on May 02, 2019 stating that as the company is now sold/transferred to new owner on 17.01.2019 (trial is ongoing from August 2016), plaintiff should be directed to amend the plaint. Please suggest 1. Should we amend the complaint 2.Impact on the suit in case of change of ownership 3. Liability of the new owner as per Companies Act
Asked 6 years ago in Civil Law
21 Answers
1. Wait for the court's order first then go for the amendment not before that.
2 & 3. This is the duty of the court to see the papers of change of ownership if there is clauses related to the liability of the new owner , where goes the legal liability and so on, so wait for the courts orders and if court ask you to do so then ask for the copy of the settlement or MOU arrived between both the owners and act accordingly.
1. See if it is criminal case going on the the complaint will not be amended in case it is to reinstate you and to for compensation a civil case then new company can be also added as party to the suit.
2. There will be no impact on suit in case of change of ownership.
3. The new company can be added as party and relief against same can be prayed.
you have to amend the plaint
2) the new management would be liable to pay you compensation for wrong ful dismissal if so awarded by the courts
1. If the subject matter of suit has been changed then the new party can be added as adding this party becomes expedient for it being a ' necessary party'.
2. Since the dispute the civil in nature , with the change of ownership of the company its rights and liabilities will also change.
3. Same as before.
If the old owner was made a party by name in the plaint then there is no need to amend the plaint. If he was made a party because he was the owner then the current owner should be made a party.
There would be no effect on this.
Liability is of the new owner unless there is something contrary in the agreement wherein the company was sold.
Regards
Opposite party will amend not you. Mere selling dose not effect your case, You have made company as party so any change in incorporation of company, it will inform by them to court. Any order pass by court binding on company.
Liability will be of company and order will comply by it`s management.
Yes amendment can be done. No such prejudice will be caused you for the same
New owners are not liable for the acts of the old owners and hence you do not need to amend your complaint at all. There would be no impact on the case.
You need not to amend your friend but they different companies should file affidavit in this regard that they have taken the business along with the liability and contingent liability and they should be made the party instead of the previous company court will take on record and the company will be defended
The litigation is on since 2016. The change of ownership happened on Jan 2019 and this was informed to court only in May 2019. This was done to delay an important judgement which was long overdue and put the case on the wrong track So please suggest 1. Do the company took liberty of the honorable court not to convey in time the change of ownership or need permission prior to that as per Company Acts 2. Can I pray to court to give directive to company to keep all the documentation from the previous owner safely, as case property, till the case is sub-judice
Asked 6 years ago
It is possible both way in case the company is not informing the code that they have taken over the previous company then as a plant if you can and inform to the court that there is a change in the ownership of the company and the new company should be made a party instead of the previous company.
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Company does not need court permission to change its name merely because case is pending against it
2) company is bound to produce original documents in its possession during trial
1. Yes it took liberty.
2. You can make such application.
1.if the date was fixed in may then it is all right if prior to may any other date was fixed after jan then this was the delay tactic for that court should be informed.
2. Yes.
1. See ownership change need to be informed at first opportunity to the court though no liberty for same.was required.
2. See they have to keep same with them also you can give notice to them through court.to produce documents before the court.
1. There is no requirement to take prior consent of the court.
2. Do not worry as if the vital document the company may find missing is going to help you.
No.
Yes
1. this is a normal change and will not effect the merit of the case
1. If the company has filed a petition seeking to amend the petition, you may protest it and record your strong objection since you have dispute with this company only and not with the new company. Let the court decide the petition on merits after which you may decide further course of legal action.
2. The new owner if not willing to undertake the responsibility or the liability in this regard then you dont have any case against the new owner.
3. It is to be seen on what basis the new ownership has taken the company
1. The company's dilatory tactics are not to be entertained, if there is a change in ownership, the previous company cannot shed away the responsibility of the previous liabilities
2. You can file a petition after discussing with your advocate about this.
Dear sir
In case of change of ownership you have to amend the title of the suit. But add the name of new director in the plaint and don't remove previous parties as their joiner is important for the decision of the court.
Also make an application in the court to submit the documents related to your job in the court.
