M/S. RAM CHAND AND SONS SUGAR MILLS PVT. LTD. vs KANHAYA LAL BHARGAVA & ORS.

The Supreme Court held that the inherent powers of the court under Section 151 of the Code of Civil Procedure (CPC) can be invoked to prevent abuse of the court process, even in the context of Order XXIX Rule 3. The court justified striking off the defence of the appellant company for the non-appearance of its director, emphasizing that any director can be summoned to answer material questions. The court ruled that unless collusion is proven, a company cannot be held constructively liable for a director's default, affirming the High Court's decision.