9911796707
|
Home
Issues:
1. Quashing of registration of the respondent-company under the Companies Act 2. Direction to prevent recognition as a recognized stock exchange 3. Investigation of complaint and prevention of trading in securities 4. Prosecution of offenders Analysis: 1. The judgment deals with a petition seeking the quashing of the registration of a company under the Companies Act. The court explains the process of company registration under section 12 of the Act, emphasizing that once the requirements are met, the Registrar of Companies must register the company. The court notes that the company in question was registered and highlights the significance of obtaining a commencement certificate under section 149 before conducting any business or borrowings. The main object of the company, as per its memorandum, is to run a stock exchange business, for which recognition under the Securities Contracts (Regulation) Act is required. The court clarifies that until recognition is granted, the company remains a public limited company and not a recognized stock exchange, making it ineligible for writ jurisdiction. 2. Regarding the direction to prevent recognition as a recognized stock exchange, the court explains that without such recognition, the company does not possess statutory powers or public duties to warrant writ jurisdiction. The court distinguishes between a private company formed with the intent to operate as a stock exchange and a recognized stock exchange with public duties. It highlights that a writ may be issued post-recognition to enforce public duties or prevent abuse of powers. 3. The judgment addresses the issue of investigating a complaint and preventing trading in securities. It mentions that if the company is engaging in illegal activities, remedies under civil and criminal laws should be sought. The court acknowledges the petitioner's complaint to investigate the matter and emphasizes that the authorities are taking action. 4. Lastly, the judgment discusses the prosecution of offenders. It points out that if there are violations of the Securities Act, penalties and prosecution measures are available under the law. The court advises the petitioner to approach the relevant authorities to report any violations and take appropriate action. It underscores the importance of following legal procedures and involving the concerned authorities in addressing alleged illegal activities. In conclusion, the court dismisses the writ petition, finding no merit in the petitioner's claims and emphasizing the need to follow legal procedures and seek remedies available under the law for addressing alleged violations.
|
