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Issues involved: Application u/s 560(6) of the Companies Act, 1956 regarding the wrongful striking off of the petitioner-company's name from the Register.
Procedural irregularity in issuance of notices under section 560: The judgment highlighted the statutory requirements under section 560(1), (2), and (3) of the Companies Act, 1956, which mandate the issuance of two notices before striking off a company's name from the Register. The first notice should be followed by a second notice and a publication in the Official Gazette, with a third notice sent to the company before striking off its name. The judgment noted a violation of these requirements as the second notice deemed the company defunct without following the prescribed procedure. Compliance with rules of natural justice and need for a fair hearing: The judgment emphasized the importance of adhering to the rules of natural justice in determining whether a company is carrying on business. It stated that any order regarding the company's status should be passed after giving the company a fair opportunity to be heard. The judgment deemed ex parte orders unacceptable and stressed the necessity of hearing the company or providing it with a reasonable opportunity to present its case before making any determination under section 560. Decision and directions for further proceedings: The judgment directed that the action taken to declare the company defunct be set aside, and all corresponding entries in the Register or website be reversed temporarily. The company was to be granted a hearing as per the notice mentioned in the affidavit-in-opposition, allowing it to show cause and submit a reply if needed. The Registrar of Companies was instructed to pass a reasoned order after hearing the company within three months from the date of communication of the judgment. The application was allowed to the extent specified, with all concerned parties required to act based on a signed photocopy of the order.
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