Back
IN THE HIGH COURT AT CALCUTTA
RAVI KRISHAN KAPUR
Damodar Aluminium Private Limited – Appellant
Versus
Registrar of Companies, West Bengal – Respondent
| Table of Content |
|---|
| 1. challenge to notice under companies act (Para 1 , 2) |
| 2. petitioner's contentions on limitations and good faith (Para 3 , 4) |
| 3. technical violations and good faith actions (Para 6 , 7 , 8 , 9) |
| 4. delay and limitation in prosecuting allegations (Para 10 , 11 , 12) |
| 5. responsibilities and limitations of regulatory authorities (Para 13 , 14) |
| 6. order allowing petition and absolving liabilities (Para 15) |
JUDGMENT :
RAVI KRISHAN KAPUR, J.
1. This is an application under section 463(2) of the Companies Act, 2013 challenging a notice dated January 1, 2025 bearing reference No. ROC/TS/Inquiry-206/21/126484 issued by the Assistant Registrar of the Companies West Bengal, Ministry of Corporate Affairs (the impugned notice).
2. Briefly, the company namely, Damodar Aluminium Private Limited is engaged in the business of aluminium products. The petitioners are the present directors of the company. By a Summons dated 31 March 2021, the respondent authorities had sought for information and explanation under section 206(1) of the Act followed by another noticed dated 7 February 2023 under section 206(3) of the Act. The company duly replied to the notice by a letter dated 17 February 2023 a
The court emphasized that minor technical violations of accounting regulations do not warrant prosecution when there is no evidence of malfeasance or bad faith by the directors.
The issuance of regulatory notices for technical violations under Company law must respect limitation periods and demonstrate substantive grounds for action rather than mechanical issuance of notices....
The notice for financial reporting violations was quashed due to it being time-barred and issued without sufficient consideration of the company's responses.
The principle of audi alteram partem mandates that a company must be given a reasonable opportunity to respond to show cause notices before any penal action is taken under the Companies Act.
The importance of providing a reasonable opportunity of being heard and considering comprehensive detailed replies before taking further action under the Companies Act, 2013.
A winding up petition cannot proceed if the statutory notice is not validly issued to the company as required by Section 434 of the Companies Act, 1956.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
