{"id":1680,"date":"2024-10-28T14:57:14","date_gmt":"2024-10-28T14:57:14","guid":{"rendered":"https:\/\/fawyerz.in\/judgments\/?p=1680"},"modified":"2025-03-12T16:22:49","modified_gmt":"2025-03-12T10:52:49","slug":"kotla-venkataswamy-vs-chinta-ramamurthy-case-summary","status":"publish","type":"post","link":"https:\/\/fawyerz.in\/judgments\/company-law\/kotla-venkataswamy-vs-chinta-ramamurthy-case-summary\/","title":{"rendered":"Kotla Venkataswamy vs Chinta Ramamurthy (1934) (Case Summary)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1680\" class=\"elementor elementor-1680\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-41e52dad elementor-section-full_width elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no\" data-id=\"41e52dad\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7a9323a5\" data-id=\"7a9323a5\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-32aca5d0 elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no\" data-id=\"32aca5d0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-6cc54f8d\" data-id=\"6cc54f8d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3c08365e elementor-widget elementor-widget-heading\" data-id=\"3c08365e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Kotla Venkataswamy vs Chinta Ramamurthy (Case Summary)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2c12d05b elementor-widget elementor-widget-image\" data-id=\"2c12d05b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1312\" height=\"736\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-photo-of-a-courtroom-with-a-judge-seated-at-the-HK528GmQTDWZE3V7_Fk_OQ-doZV8kOYTUqIZymBanadXw.jpeg\" class=\"attachment-1536x1536 size-1536x1536 wp-image-1681\" alt=\"Kotla Venkataswamy vs Chinta Ramamurthy\" srcset=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-photo-of-a-courtroom-with-a-judge-seated-at-the-HK528GmQTDWZE3V7_Fk_OQ-doZV8kOYTUqIZymBanadXw.jpeg 1312w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-photo-of-a-courtroom-with-a-judge-seated-at-the-HK528GmQTDWZE3V7_Fk_OQ-doZV8kOYTUqIZymBanadXw-300x168.jpeg 300w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-photo-of-a-courtroom-with-a-judge-seated-at-the-HK528GmQTDWZE3V7_Fk_OQ-doZV8kOYTUqIZymBanadXw-1024x574.jpeg 1024w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-photo-of-a-courtroom-with-a-judge-seated-at-the-HK528GmQTDWZE3V7_Fk_OQ-doZV8kOYTUqIZymBanadXw-150x84.jpeg 150w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-photo-of-a-courtroom-with-a-judge-seated-at-the-HK528GmQTDWZE3V7_Fk_OQ-doZV8kOYTUqIZymBanadXw-768x431.jpeg 768w\" sizes=\"(max-width: 1312px) 100vw, 1312px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d416ca6 elementor-widget elementor-widget-text-editor\" data-id=\"2d416ca6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This landmark case of company law is a set case where the main issue revolves around the doctrine of constructive notice of public documents like Articles of Association of a company to the third persons. This case sets up the perfect example of contracts being invalid if ultra vires to the incorporation documents of a company. <\/span><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/fawyerz.in\/judgments\/company-law\/kotla-venkataswamy-vs-chinta-ramamurthy-case-summary\/#Facts_of_Kotla_Venkataswamy_vs_Chinta_Ramamurthy\" >Facts of Kotla Venkataswamy vs Chinta Ramamurthy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/fawyerz.in\/judgments\/company-law\/kotla-venkataswamy-vs-chinta-ramamurthy-case-summary\/#Issues_framed\" >Issues framed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/fawyerz.in\/judgments\/company-law\/kotla-venkataswamy-vs-chinta-ramamurthy-case-summary\/#Judgment_of_Kotla_Venkataswamy_vs_Chinta_Ramamurthy\" >Judgment of Kotla Venkataswamy vs Chinta Ramamurthy<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Facts_of_Kotla_Venkataswamy_vs_Chinta_Ramamurthy\"><\/span><span style=\"color: #993300;\"><b>Facts of <\/b><b>Kotla Venkataswamy vs Chinta Ramamurthy<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Kotla venkataswamy is the mortgagee holding a mortgage bond executed by South Indian Agricultural and Industrial Improvement Co. Ltd (Defendant).&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The mortgage bond was signed by defendant 1 &amp; 2 who were the working director and secretary of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company went into liquidation and Kotla Venkataswamy (Plaintiff) sued to claim his right towards the mortgage.&nbsp;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company, challenging the validity of the mortgage, argued that the Articles of the company mandated the signature of three persons namely, working director, secretary and managing director of the company to execute a mortgage.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Issues_framed\"><\/span><span style=\"color: #993300;\"><b>Issues framed<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the mortgage bond was validly executed so as to make the company liable?<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Judgment_of_Kotla_Venkataswamy_vs_Chinta_Ramamurthy\"><\/span><span style=\"color: #993300;\"><b>Judgment of <\/b><b>Kotla Venkataswamy vs Chinta Ramamurthy<br><\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Subordinate court judgment: <\/b><span style=\"font-weight: 400;\">The lower court dismissed the claim of the plaintiff and held that the mortgage was not valid as the Articles of the company mandated the signatures of the Working director, managing director and secretary. The signature of the Managing director was missing on the mortgage deed.<\/span><b>&nbsp;<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The plaintiff then appealed to the Madaras High court<\/span><\/p>\n<p><b>Judgment of the Present case<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The court applied the doctrine of constructive notice as the Articles of the company were public documents. The court also reiterated the Article 15 of the AOA of the company i.e.&nbsp;<\/span><\/p>\n<p><span style=\"font-size: 18px; font-style: inherit; color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; background-color: var(--ast-global-color-5);\">\u201c<\/span>Article 15<span style=\"font-size: 18px; font-style: inherit; color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; background-color: var(--ast-global-color-5);\">: &#8211; All deeds, hundies, cheques, certificates and other instruments hall be signed by the Managing director, the Secretary and the working Director on behalf of the Company, and shall be considered valid.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The court held that even though the loan was Articles are public documents and hence it shall be considered that the plaintiff (Appellant) had the notice of the fact that the signature of the Working Director and secretary are not enough to create a mortgage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The court held that it is impossible to validate the Mortgage Deed when the Articles explicitly states that to make a deed, all three (Managing Director, working Director, Secretary) signatories are mandatory. The court applied the doctrine of constructive notice presuming that the plaintiff had sufficient notice about the requirement given in the Articles. The deed was ultra vires to the Articles and hence was void ab initio. The appeal by the plaintiff was dismissed the appeal of the plaintiff.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This landmark case of company law is a set case where the main issue revolves around the doctrine of constructive notice of public documents like Articles of Association of<\/p>\n","protected":false},"author":3,"featured_media":1681,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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