Japha v. Delaware Valley Utilities Co.

Rodney, J.,

delivering the opinion of the Court:

It has become quite usual in corporate indentures securing bond issues to include certain clauses which are, at times, called “no action clauses” or “Limitation of Action Clauses.” Reasonable restrictions on the right of an individual holder of one or more of a series of corporate bonds, either in respect to the obligation or of the security, have generally been held valid and enforceable. These reasonable restrictions are viewed as not tending to interfere with the jurisdiction of the court, but as wholesome restrictions imposed for the benefit…