Kerala High Court
Izdaf Nidhi Ltd vs Union Of India on 13 September, 2024
Author: V.G.Arun
Bench: V.G.Arun
2024:KER:69963
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE V.G.ARUN
FRIDAY, THE 13TH DAY OF SEPTEMBER 2024 / 22ND BHADRA, 1946
WP(C) NO. 32504 OF 2024
PETITIONER:
IZDAF NIDHI LTD
DOOR NO.V-250 A, CHANGARAMKULAM,
NANNAMUKKU P.O, MALAPPURAM,
REPRESENTED BY ITS MANAGING DIRECTOR,
PIN - 679575
BY ADVS.
SABU GEORGE
P.B.SUBRAMANYAN
MANU VYASAN PETER
RESPONDENTS:
1 UNION OF INDIA
REP. BY ITS SECRETARY, MINISTRY OF CORPORATE
AFFAIRS, 5TH FLOOR, "A" WING, SHASTRI BHAWAN,
DR.RAJENDRA PRASAD ROAD,
NEW DELHI, PIN - 110001
2 ASSISTANT DIRECTOR
MINISTRY OF CORPORATE AFFAIRS,
5TH FLOOR, "A" WING,
SHASTRI BHAWAN,
DR.RAJENDRA PRASAD ROAD,
NEW DELHI, PIN - 110001
W.P.(C).No. 32504/2024 2024:KER:69963
2
3 REGIONAL DIRECTOR
SOUTHERN REGION,
MINISTRY OF CORPORATE AFFAIRS,
SHASTRI BHAWAN, BLOCK 1,
VTH FLOOR 26, HADDOWS ROAD,
CHENNAI, PIN - 600006
4 THE REGISTRAR OF COMPANIES (KERALA)
COMPANY LAW BHAVAN,
BMC ROAD, THRIKKAKARA,
ERNAKULAM,
PIN - 682021
SRI.T.C.KRISHNA, DSGI IN CHARGE, SRI.SUNIL KUMAR
KURIAKOSE,SR.GOVERNMENT PLEADER.
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 13.09.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C).No. 32504/2024 2024:KER:69963
3
V.G.ARUN, J
=================
W.P.(C).No. 32504 of 2024
=====================
Dated this the 13th day of September, 2024
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.38860/2023 & connected cases and the same
directions may be issued in this case also. The directions in the
said judgment reads 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
W.P.(C).No. 32504/2024 2024:KER:69963
competent Authority. But, these protections will not 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 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.
W.P.(C).No. 32504/2024 2024:KER:69963
(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."
Being in respectful agreement with the directions
extracted above, the writ petition is disposed of by making the
directions in W.P.(C).No.38860/2023 & connected cases
applicable to this case also.
Sd/-
V.G.ARUN, JUDGE
BG/NB
W.P.(C).No. 32504/2024 2024:KER:69963
APPENDIX OF WP(C) 32504/2024
PETITIONER EXHIBITS
EXHIBIT-P1 A TRUE COPY OF CERTIFICATE OF
INCORPORATION OF THE PETITIONER, DATED 06-
09-2020
EXHIBIT-P2 A TRUE COPY OF THE NIDHI (AMENDMENT)
RULES, 2022 PUBLISHED BY RESPONDENT NO.1
ON 19-04-2022 IN THE GAZETTE
EXHIBIT-P3 A TRUE COPY OF ORDER, DATED 24-04-2024
ISSUED BY RESPONDENT NO.2
EXHIBIT-P4 A TRUE COPY OF THE JUDGMENT DATED 19-03-
2024 IN WP(C) NO.38860 OF 2023 PASSED BY
THIS HON'BLE COURT
RESPONDENTS EXHIBITS NIL
