{"id":43099,"date":"2009-07-09T00:00:00","date_gmt":"2009-07-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/parties-name-vs-the-registrar-of-companies-and-on-9-july-2009"},"modified":"2016-04-02T09:34:34","modified_gmt":"2016-04-02T04:04:34","slug":"parties-name-vs-the-registrar-of-companies-and-on-9-july-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/parties-name-vs-the-registrar-of-companies-and-on-9-july-2009","title":{"rendered":"Parties Name vs The Registrar Of Companies And &#8230; on 9 July, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">Parties Name vs The Registrar Of Companies And &#8230; on 9 July, 2009<\/div>\n<pre>CIVIL WRIT PETITION NO. 3021 OF 2008                          -1-\n\n\n\nIN THE HIGH COURT OF PUNJAB AND HARYANA AT\nCHANDIGARH.\n\n\n\n            DATE OF DECISION: July 09, 2009.\n\n                  Parties Name\nDr. Kartar Singh Rai\n                                     ...PETITIONER\n     VERSUS\nThe Registrar of Companies and others\n                                   ...RESPONDENTS\n\n\nCORAM:      HON'BLE MR. JUSTICE JASBIR SINGH\n\n\nPRESENT: Mr. Sudhir Mittal,\n         Advocate, for the petitioner.\n\n            Mr. S.K.Sharma, Advocate,\n            for respondent No. 1.\n\n            Mr. Puneet Jindal, Advocate,\n            for respondents No. 2 and 3.\n\n\nJASBIR SINGH, J. (oral)\n\n\nORDER:\n<\/pre>\n<p>            This writ petition has been filed with a prayer that direction be<\/p>\n<p>issued to respondent No. 1 to declare respondent No. 2, i.e., M\/S Punjab<\/p>\n<p>Motors Pvt. Ltd. as a defunct company, as per the provisions of Section 3 of<\/p>\n<p>the Companies Act, 1956, (in short the Act).\n<\/p>\n<p>             It is averment of the petitioner that the Company is closed for<\/p>\n<p>the last so many years. Last monthly return by the Company was filed on<\/p>\n<p>March 31, 1984. It has further been stated that the Company does not have<\/p>\n<p>paid up capital of more than Rs. 1,00,000\/-, as is mandatory under the<\/p>\n<p>aforesaid provision. By stating as above, it has been prayed that Registrar<br \/>\n<span class=\"hidden_text\"> CIVIL WRIT PETITION NO. 3021 OF 2008                             -2-<\/span><\/p>\n<p>of Companies (Respodent No. 1) be directed to take action under the<\/p>\n<p>provisions of Section 560 of the Act (in short the Act) against respondent<\/p>\n<p>No. 2.\n<\/p>\n<p>             Prayer made by counsel for the petitioner has been opposed by<\/p>\n<p>respondents No. 2 and 3 by stating that the petitioner and respondent No. 3<\/p>\n<p>are real brothers. Inter se litigation, regarding property left by their father<\/p>\n<p>Gian Singh, is pending in various Forums and this writ petition has been<\/p>\n<p>filed to settle personal property dispute.\n<\/p>\n<p>             After hearing counsel for the parties, this Court is of the<\/p>\n<p>opinion that this writ petition deserves to be disposed of by issuing direction<\/p>\n<p>to respondent No. 1 to take action as per provisions of Section 560 of the<\/p>\n<p>Act. In this writ petition, in para No. 5, petitioner has averred as under:<\/p>\n<blockquote><p>             &#8220;That respondent No. 2 could not function profitably and hence<\/p>\n<p>             the Directors resolved to wind it up. Accordingly, notice dated<\/p>\n<p>             July 6, 1984 was issued for holding of 9th Annual General<\/p>\n<p>             Meeting on July 31, 1984 at 11 AM. A true copy of this notice<\/p>\n<p>             is annexed as Annexure P-5. In this meeting Directors report<\/p>\n<p>             dated July 6, 1984, was placed before the house in which it was<\/p>\n<p>             stated that efforts are being made to wind up the affairs of the<\/p>\n<p>             Company to avoid further losses. A true copy of this report is<\/p>\n<p>             annexed as Annexure P-6.           Subsequently, the Board of<\/p>\n<p>             Directors met on September 10, 1984 and formally decided to<\/p>\n<p>             complete the winding up procedure. The copy of the minutes<\/p>\n<p>             of this meeting is not available with the petitioner and this<\/p>\n<p>             averment is being made on the basis of the notes maintained by<\/p>\n<p>             him with regard to the affairs of respondent No. 2 after he was<br \/>\n<span class=\"hidden_text\"> CIVIL WRIT PETITION NO. 3021 OF 2008                           -3-<\/span><\/p>\n<p>             inducted as its Director some time in the year 1981-82. The<\/p>\n<p>             last annual return filed on behalf of respondent No. 2 was July<\/p>\n<p>             31, 1984, after which no further returns have been filed. At that<\/p>\n<p>             particular point in time Sh. Charanjit Singh, respondent No. 3<\/p>\n<p>             was the Managing Director of Respondent No. 2&#8243;<\/p><\/blockquote>\n<p>             In reply to above said averment, respondent No. 1 in his reply<\/p>\n<p>has stated that contents of para No. 5 are matters of record. Counsel for<\/p>\n<p>respondents No. 2 and 3 has failed to rebut the averments made by the<\/p>\n<p>petitioner in para No. 5 of the petitioner. It has not been controverted that<\/p>\n<p>the Company do not have paid up capital of more than Rs. 1,00,000\/-. It is<\/p>\n<p>not functioning for the last so many years and last return was filed in the<\/p>\n<p>year 1984. If that is so, this Court feels that respondent No. 1 is duty bound<\/p>\n<p>to take action as per provisions of Section 560 of the Act, which reads thus:<\/p>\n<blockquote><p>             &#8220;560(1) Where the Registrar has reasonable cause to believe<\/p>\n<p>             that a Company is not carrying on business or in operation, he<\/p>\n<p>             shall send to the company by post a letter inquiring whether the<\/p>\n<p>             Company is carrying on business or in operation.&#8221;<\/p><\/blockquote>\n<p>             The above     provision further mandates that on forming a<\/p>\n<p>reasonable belief that a Company was not carrying on business or is not in<\/p>\n<p>operation, the Registrar of Companies shall send a letter to the Company<\/p>\n<p>concerned and thereafter take action as provided in the above said<\/p>\n<p>provision.\n<\/p>\n<p>             In view of admitted facts on record, as mentioned above, there<\/p>\n<p>is no reason with respondent No. 1 to say that action cannot be taken as per<\/p>\n<p>provisions of Section 3 of the Act. Consequently, this writ petition is<br \/>\n<span class=\"hidden_text\"> CIVIL WRIT PETITION NO. 3021 OF 2008                           -4-<\/span><\/p>\n<p>disposed of by directing respondent No. 1 to initiate action as per provisions<\/p>\n<p>of Section 3 of the Act and after observing the procedure laid down in<\/p>\n<p>Section 560 of the Act, pass a reasoned order declaring the Company as a<\/p>\n<p>defunct Company or otherwise. Needful be done within three months from<\/p>\n<p>the date of receipt of copy of this order.\n<\/p>\n<p>             Copy of the order be given Dasti on payment.<\/p>\n<pre>\n\n\n\n\nJuly 09, 2009.                                           ( Jasbir Singh )\nDKC                                                           Judge\n <\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court Parties Name vs The Registrar Of Companies And &#8230; on 9 July, 2009 CIVIL WRIT PETITION NO. 3021 OF 2008 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. DATE OF DECISION: July 09, 2009. Parties Name Dr. Kartar Singh Rai &#8230;PETITIONER VERSUS The Registrar of Companies and others &#8230;RESPONDENTS [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-43099","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Parties Name vs The Registrar Of Companies And ... on 9 July, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/parties-name-vs-the-registrar-of-companies-and-on-9-july-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Parties Name vs The Registrar Of Companies And ... on 9 July, 2009 - Free Judgements of Supreme Court &amp; 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