Case Note & Summary
The appeal arose from an order of the Company Law Board (CLB) dismissing an application for condonation of delay in filing a petition under Section 155 of the Companies Act, 1956 for rectification of the register of members. The appellants, Gharda Chemicals Limited and others, had filed Company Application No. 127 of 1995 in Company Petition No. 77 of 1990 seeking to rectify the register of members. The CLB refused to condone the delay, holding that the appellants had not shown sufficient cause for the delay. The appellants appealed to the High Court. The High Court examined the facts and found that the delay was not adequately explained. The court noted that the appellants had knowledge of the alleged wrong entries in the register much earlier and had not acted promptly. The court held that the CLB's discretion was properly exercised and there was no ground to interfere. The appeal was dismissed with no order as to costs.
Headnote
A) Limitation Act - Condonation of Delay - Section 5 - Sufficient Cause - The appellants sought condonation of delay in filing an application under Section 155 of the Companies Act, 1956 for rectification of register of members. The court held that the explanation for delay was not satisfactory and the CLB had correctly exercised its discretion in refusing condonation. (Paras 1-10)
Issue of Consideration
Whether the Company Law Board was justified in refusing to condone the delay in filing the application for rectification of the register of members under Section 155 of the Companies Act, 1956.
Final Decision
The High Court dismissed the appeal, upholding the order of the Company Law Board refusing condonation of delay.
Law Points
- Condonation of delay
- Limitation Act
- Section 5
- Sufficient cause
- Companies Act
- 1956
- Section 155
