The High Court reviewed a challenge to an order issued u/s ...

Court held impugned order lacked prima facie case for info called u/s 206 of Companies Act, 2013. No finding of fraud or unlawful conduct by petitioner.

June 25, 2024

Case Laws     Companies Law     HC

The High Court reviewed a challenge to an order issued u/s 206(4) of the Companies Act 2013, which required the furnishing of details, documents, and information. The Court held that for such an order to be valid, it must establish a prima facie connection between the information sought and the business of the company being conducted fraudulently or unlawfully. The court found that the impugned order lacked this essential linkage and did not demonstrate any fraudulent or unlawful conduct by the petitioner. As the order did not meet the necessary preconditions set out in Sections 206(1) to (3), it was deemed jurisdictionally flawed, leading to the disposal of the petition.

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