HC directs RoC to provide an opportunity of being heard to petitioner before calling for inspection of books account
- News|Blog|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 20 July, 2021
Case details: Axis Ispat (P.) Ltd. v. Union of India - [2021] 128 taxmann.com 139 (Delhi)
Judiciary and Counsel Details
-
- Prathiba M. Singh, J.
- Dayan Krishnan, Sr. Adv. Vikas Mehta, Shakeel Ahmad and Apoorv Khator, Advs. for the Petitioner
- Nidhi Raman, CGSC for the Respondent
Facts of the Case
The Registrar of Companies (RoC) has the power to call for information, an inspection of books, and to conduct an inquiry, however, RoC would have to first call upon the company to give an explanation and also provide them a reasonable opportunity of being heard before issuing show-cause notices.
In this instant case, the Petitioner, Axis Ispat Private Limited, filed the present petition seeking quashing of the 37 show-cause notices, issued against the Petitioner, by the Ministry of Corporate Affairs, Union of India, under various sections of the Companies Act, 2013. A further prayer of the Petitioner is for the quashing of the order sought for inspection of books of account and other statutory records of Petitioner Company.
The Petitioner replied to the order belatedly and owing to the belated reply, RoC had proceeded further, to issue show-cause notice. However, there was a doubt that whether the reply submitted by the petitioner was considered or not by RoC while issuing show-cause notice.
High Court Held
Under these circumstances, in order to ensure that the interest of the petitioner was properly balanced, and adequate opportunity was afforded to the petitioner, RoC was directed to give the opportunity of being heard to the petitioner and after affording a hearing to the petitioner, RoC could proceed further in accordance with the law.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied