Thenhipalam Nidhi Limited vs Union Of India
2024 Latest Caselaw 31487 Ker

Citation : 2024 Latest Caselaw 31487 Ker
Judgement Date : 5 November, 2024

Kerala High Court

Thenhipalam Nidhi Limited vs Union Of India on 5 November, 2024

Author: P Gopinath

Bench: P Gopinath

                                                          2024:KER:82096



                IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                PRESENT

                 THE HONOURABLE MR. JUSTICE GOPINATH P.

    TUESDAY, THE 5TH DAY OF NOVEMBER 2024 / 14TH KARTHIKA, 1946

                        WP(C) NO. 37939 OF 2024

PETITIONER/S:



          THENHIPALAM NIDHI LIMITED,
          BUILDING NO.TP6/307 P, Q,
          DUBAI TOWERS, KOHINOOR, THENHIPALAM.P.O,
           MALAPPURAM DISTRICT
           REPRESENTED BY ITS MANAGING DIRECTOR, PIN - 673636


          BY ADVS.
          LINDONS C.DAVIS
          RAJITH DAVIS
          N.S.SHAMILA
          CHINJU P. JOYIES
          E.U.DHANYA




RESPONDENT/S:

    1     UNION OF INDIA,
          REPRESENTED BY THE SECRETARY,
          MINISTRY OF CORPORATE AFFAIRS, ''A'' WING,
           SHASTRI BHAWAN,RAJENDRA PRASAD ROAD,
          NEW DELHI,, PIN - 110001

    2     DEPUTY DIRECTOR,MINISTRY OF CORPORATE AFFAIRS,
          ''A'' WING, SHASTRI BHAWAN, RAJENDRA PRASAD ROAD,
          NEW DELHI,, PIN - 110001

    3     JOINT SECRETARY,MINISTRY OF CORPORATE AFFAIRS,
           CL -VII,''A'' WING, SHASTRI BHAWAN,
          RAJENDRA PRASAD ROAD, NEW DELHI,, PIN - 110001
                                                       2024:KER:82096
WP(C) NO. 37939 OF 2024        2


    4     REGIONAL DIRECTOR (SOUTHERN REGION),
          MINISTRY OF CORPORATE AFFAIRS, SHASTRI BHAVAN,
          BLOCK-1, V FLOOR, 26, HADDOWS ROAD,
          NEW DELHI,, PIN - 110001

    5     REGISTRAR OF COMPANIES, ERNAKULAM,
          COMPANY LAW BUILDING, KAKKANAD,
          COCHIN ERNAKULAM,, PIN - 682021

    6     ASSISTANT DIRECTOR,
          MINISTRY OF CORPORATE AFFAIRS,''A'' WING,
           SHASTRI BHAWAN, RAJENDRA PRASAD ROAD,
          NEW DELHI,, PIN - 110001

    7     STATE POLICE CHIEF,
          POLICE HEAD QUARTERS, VAZHUTHAKKAD,
           THIRUVANANTHAPURAM, PIN - 695010


          BY ADV SHRI.P.R.AJITH KUMAR, CGC
          SMT. JASMIN M.M, GP


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
05.11.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                             2024:KER:82096
WP(C) NO. 37939 OF 2024            3



                                JUDGMENT

When this case was taken up, the counsel for the

petitioner submitted that the issue is covered by the judgment in

W.P.(C).No.38860 of 2023 & connected cases and the same

directions may be issued in this case also. The directions in the

said judgment read as under:-

(a) The challenge to the amendments to Section 406 of

the Companies Act, 2013, as also to the "Nidhi Rules,

2014" - as impelled in these writ petitions - are left

undecided and kept open for future consideration, if

it becomes so warranted.

(b) Each of the petitioners in these cases will be at

liberty to approach the competent Authority, for

compounding the offences alleged against them; and

if such are made within a period of two months from

the date of receipt of a copy of this judgment, they

shall be considered by the said Authority with the

maximum empathy requisite; thus leading to the

imposition of the least sum of penalty, as permissible

in law - however, subject to the evaluation and

determination of such, on a case-to-case basis by the

competent Authority. But, these protections will not 2024:KER:82096

apply in a case where criminality is suspected, or

found, or in which action under the criminal law is

initiated or proposed; in which event, the respective

petitioners will be informed to the same appositely.

(c) On the offences committed by the petitioner - Nidhi

Companies, if any, being compounded in terms of the

afore directions, they will be at liberty to apply

afresh, in the format prescribed as per the "NDH

Form"; and if this is done, it will be considered

dispassionately and without being trammeled or

influenced by the earlier rejections, and dehors the

orders qua the same; and appropriate new orders and

necessary action issued and completed thereon,

without any avoidable delay, but not later than three

months from the date of the receipt of the

application.

(d) If, on the contrary, the competent Authority is to find

any objection with the applications of the petitioner -

"Nidhi Companies" under the "NDH" Format, they

shall not reject it peremptorily, but will notify each of

them appropriately through apposite proceedings,

intimating them of such and giving them a minimum

of one month to rectify the same, to be then

resubmitted as per law. Should there be any further 2024:KER:82096

defects still found to be subsisting, the Authority will

then hear the respective applicants and give them

such necessary further time as may be fixed, to

rectify them, before taking a final decision.

(e) The competent Authorities will permit the petitioners

to raise their capital within the threshold limit as per

the Statutory requirement; for which purpose, all

applications and requirements for such will be

acceded to, subject to other mandatory requirements

being satisfied. Needless to say, if the petitioners

require any clarifications in future, on the working of

the afore directions, they will be at liberty to

approach this Court through appropriate

applications."

The directions in the judgment in W.P.(C).No.38860 of

2023 & connected cases will apply to the petitioner also.

2. The learned Standing counsel appearing for the

respondents would submit that since the provisions of Section

406 of the Companies Act, 2013 as well as relevant provisions of

the Nidhi Rules 2014 have not been struck down by this Court,

the conditions imposed in Ext.P7 interim order may also be

directed to operate in so far as the petitioner is concerned.

3. The learned counsel for the petitioner has no 2024:KER:82096

objection to the same.

Accordingly the following conditions in Ext.P7 interim

order will also apply in the case of the petitioner:-

(i) The petitioner, however, shall not enroll

any new members beyond 10% of the existing

membership.

(ii) The petitioner as well as the members

who enrolled will not be permitted to put forward

any claim in equity during the final hearing of the

writ petition.

(iii) Any deposit accepted or loan granted to

such new members shall be strictly following the

safeguards provided in the Companies Act, 1956 and

the Nidhi Rules, 2014, and it will be open to the

respondents to take necessary action against the

persons who violate any such provision.