Disposed

M/S Gramakshema Nidhi Ltd. v. Union of India

Kerala HC11 Jul 2024WP(C)/17936/2024

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition by a Nidhi company, extending the directions from WP(C) No. 38860/2023 which left challenges to Companies Act amendments and Nidhi Rules open, allowed compounding of offences with empathy, permitted fresh applications without prejudice from prior rejections, required authorities to give notice and time to rectify defects, and allowed capital raising withi

What did the court decide?

Directions from WP(C) No. 38860/2023 made applicable to petitioner, including liberty to compound offences, file fresh NDH Form applications, and raise capital within statutory limits.

M/S Gramakshema Nidhi Ltd. Vs Union of India — Company and Corporate | Kerala HC (2024)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE V.G.ARUN

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THURSDAY, THE 11TH DAY OF JULY 2024 / 20TH ASHADHA, 1946

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WP(C) NO. 17936 OF 2024

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PETITIONER:

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M/S GRAMAKSHEMA NIDHI LTD

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REP BY ITS MANAGING DIRECTOR VV GIRISH S/O VV
SREEDHARAN, THEKKAYIL HOUSE, POONATH (PO)
NADUVANNUR VIA AVITTANALLUR VILLAGE PIN-673614
WORKING AS MANAGING DIRECTOR GRAMAKSHEMA NIDHI LTD
DOOR NO 8/820P , 820Q ,820R 1ST FLOOR EDATHIL
BUILDING, KOYILANDY ROAD , ULLIYERI POST, QUILANDY
TALUK, KOZHIKODE DISTRICT PIN-673620 KOZHIKKODE
KERALA, PIN - 673614

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BY ADVS.
C.R.SIVAKUMAR
S.SOORYA GAYATHRY
BINI KRISHNA

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RESPONDENTS:

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1UNION OF INDIA
REPRESENTED BY ITS SECRETARY, MINISTRY OF
CORPORATE AFFAIRS, &#8216;A&#8217; WING, SHASTRI
BHAVAN, RAJENDRA PRASAD ROAD,NEW DELHI, PIN -
110001
2ASSISTANT DIRECTOR
MINISTRY OF CORPORATE AFFAIRS,CL-VII,
&#8216;A&#8217; WING, SHASTRI BHAVAN, RAJENDRA
PRASAD ROAD,NEW DELHI, PIN - 110001

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3REGIONAL DIRECTOR
SOUTHERN REGION,MINISTRY OF CORPORATE AFFAIRS,
SHASTRI BHAVAN, BLOCK 1, VFLOOR, 26, HADDOWS ROAD,
CHENNAI, PIN - 600006

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4DEPUTY DIRECTOR
REGISTRAR OF COMPANIES (KERALA)MINISTRY OF
CORPORATE AFFAIRS, COMPANY LAW BHAVAN, BMC ROAD,
THRIKKAKARA, KOCHI, PIN - 682021

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BY ADV P.R.AJITH KUMAR

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SRI. T.C. KRISHNA DSGI, IN CHARGE.

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 11.07.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:

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W.P.(C).No.17936/2024

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V.G.ARUN, J

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= = = = = = = = = = = = = = = = =

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W.P.(C).No.17936 of 2024

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= = = = = = = = = = = = = = = = = = = = = Dated this the 11^th day of July, 2024

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JUDGMENT

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When this case was taken up, the counsel for the petitioner submitted that the issue is covered by the judgment in W.P.(C).No.38860/2023 & connected cases and the same directions may be issued in this case also. The directions in the said judgment reads as under:-

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(a) The challenge to the amendments to Section 406 of the Companies Act, 2013, as also to the “Nidhi Rules, 2014” - as impelled in these writ petitions - are left undecided and kept open for future consideration, if it becomes so warranted.

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(b) Each of the petitioners in these cases will be at liberty to approach the competent Authority, for compounding the offences alleged against them; and if such are made within a period of two months from the date of receipt of a copy of this judgment, they shall be considered by the said Authority with the maximum empathy requisite; thus leading to the imposition of the least sum of penalty, as permissible in law – however, subject to the evaluation and determination of such, on a case-to-case basis by the competent Authority. But, these protections will not apply in a case where criminality is suspected, or found, or in

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W.P.(C).No.17936/2024

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which action under the criminal law is initiated or proposed; in which event, the respective petitioners will be informed to the same appositely.

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(c) On the offences committed by the petitioner - Nidhi Companies, if any, being compounded in terms of the afore directions, they will be at liberty to apply afresh, in the format prescribed as per the “NDH Form”; and if this is done, it will be considered dispassionately and without being trammeled or influenced by the earlier rejections, and dehors the orders qua the same; and appropriate new orders and necessary action issued and completed thereon, without any avoidable delay, but not later than three months from the date of the receipt of the application.

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(d) If, on the contrary, the competent Authority is to find any objection with the applications of the petitioner - “Nidhi Companies” under the “NDH” Format, they shall not reject it peremptorily, but will notify each of them appropriately through apposite proceedings, intimating them of such and giving them a minimum of one month to rectify the same, to be then resubmitted as per law. Should there be any further defects still found to be subsisting, the Authority will then hear the respective applicants and give them such necessary further time as may be fixed, to rectify them, before taking a final decision.

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(e) The competent Authorities will permit the petitioners to raise their capital within the threshold limit as per the Statutory requirement; for which purpose, all applications and requirements for such will be acceded to, subject to other mandatory requirements being satisfied. Needless

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W.P.(C).No.17936/2024

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to say, if the petitioners require any clarifications in future, on the working of the afore directions, they will be at liberty to approach this Court through appropriate applications. ”

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Being in respectful agreement with the directions extracted above, the writ petition is disposed of by making the directions in W.P.(C).No.38860/2023 & connected cases applicable to this case also.

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Sd/V.G.ARUN JUDGE

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SSK/11/07

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W.P.(C).No.17936/2024

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APPENDIX OF WP(C) 17936/2024

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PETITIONER EXHIBITS

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`Exhibit P1`	`A TRUE COPY OF THE CERTIFICATE OF` `INCORPORATION OF THE PETITIONER AS A` `“NIDHI” DATED 04/12/2020`
`Exhibit P2`	`A TRUE COPY OF THE MEMORANDUM OF` `ASSOCIATION OF THE PETITIONER COMPANY` `UNDATED`
`Exhibit P2A`	`A TRUE COPY OF THE ARTICLES OF` `ASSOCIATION OF THE PETITIONER COMPANY` `UNDATED`
`Exhibit P3`	`A TRUE COPY OF THE S.O. 2269 (E) DATED` `01.07.2019 ISSUED BY THE 1ST RESPONDENT`
`Exhibit P4`	`A TRUE COPY OF THE NDH-4 APPLICATION` `DATED 06/12/2021`
`Exhibit P5`	`A TRUE COPY OF THE COMMUNICATION/LETTER` `DATED 14/05/2024 ISSUED BY THE 2ND` `RESPONDENT`
`Exhibit P6`	`A TRUE COPY OF THE INTERIM ORDER DATED` `10/05/2024 IN WP(C) NO. 17257/2024 ON` `THE FILE OF THIS HON’BLE COURT`
`Exhibit P7`	`A TRUE COPY OF THE JUDGEMENT DATED` `19/03/2024 IN WP (C) NO. 4464/2024 OF` `THIS HON’BLE COURT`

M/S Gramakshema Nidhi Ltd. v. Union of India

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M/S Gramakshema Nidhi Ltd. v. Union of India

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