9911796707
TMI Blog2017 (9) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... to the second respondent now to cause such scrutiny and enquiry, as is warranted under the Companies Act and Regulations, to ensure that such mistakes and deliberate manipulations are rectified and unearthed in and from the books and documents of the Company. In such circumstances, direct the second respondent to take immediate action to cause a scrutiny and an enquiry into the statutory books and documents of the Company and to issue such orders as may be warranted for rectification of the same and to follow up with all appropriate action as is warranted under the mandate of law. The exercise as directed herein shall be completed by the second respondent as expeditiously as possible but not later than four months from the date of receip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the action of the Directors of the Company in including his name as a Director of its Board for the period from 2005 to 2014 is confutative and he apprehends that he will be liable for any misdemeanour of the Board of the Company for this period. He has, therefore, filed this writ petition praying that directions be issued to the Registrar of Companies, the second respondent herein, to initiate action against the Company under Section 234 of the Companies Act, 1956, which corresponds to Section 206 of the Companies Act, 2013, for correction of the Books of the said Company. 2. I have heard Sri.P.K.Rakesh Kumar, learned counsel for the petitioner and the learned Central Government Counsel for respondents 1 and 2. 3. When hearing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tely in support of the allegations made by the petitioner. The credence and veracity of the case of the petitioner in this writ petition is above board since even the second respondent in their preliminary investigation has found in favour of the petitioner. 4. In such circumstances and in view of above, it is only appropriate that the second respondent immediately cause an enquiry and inspection into the affairs of the Company, invoking the powers in vested in him under Section 234 of the Companies Act, 1956, which corresponds to Section 206 of the Companies Act, 2013. The powers contained there are plenary and its full reading would be beneficial. The relevant provisions are, therefore, extracted as under: 234. Power of Registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he company to furnish in writing any information or explanation on matters specified in the order, within such time as he may specify therein; and the provisions of sub-sections (2), (3), (3A) and (4) and (6) of this section shall apply to such order. If upon inquiry the Registrar is satisfied that any representation on which he took action under this sub-section was frivolous or vexatious, he shall disclose the identity of his information to the company. 5. The ambit of the above provision clearly invests the second respondent with the obligation to cause a scrutiny into the books and documents maintained by the Company on information received by him and if after such scrutiny he gathers an opinion that further information and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he document shall be registered, recorded or filed as the case may be, by the Registrar and the company shall be informed accordingly. 7. The submissions made on behalf of respondents 1 and 2 herein, recorded above, would clearly indicate that the allegations of the petitioner that large scale manipulations have been done in the records of the Company appear to be more or less established. It is, therefore, up to the second respondent now to cause such scrutiny and enquiry, as is warranted under the Companies Act and Regulations, to ensure that such mistakes and deliberate manipulations are rectified and unearthed in and from the books and documents of the Company. 8. In such circumstances, I direct the second respondent to take im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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