[Cites 5, Cited by 0]
Kerala High Court
Astoria Nidhi Ltd vs Union Of India on 23 February, 2026
WP(C) No.20555 of 2021 1
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE VIJU ABRAHAM
MONDAY, THE 23RD DAY OF FEBRUARY 2026 / 4TH PHALGUNA, 1947
WP(C) NO. 20555 OF 2021
PETITIONER:
ASTORIA NIDHI LTD., KLM TOWER, MUVATTUPUZHA ROAD,
KOTHAMANGALAM, ERNAKULAM -686 691. REPRESENTED BY
MANAGING DIRECTOR, JOSEKUTTY XAVIER , RESIDING AT
KANNATUMADAN HOUSE, KOZHIPILLY P.O, KOTHAMANGALAM,
ERNAKULAM-686 691
BY ADVS.
SHRI.K.SANDESH RAJA
SHRI.SHANKAR V.
RESPONDENTS:
1 UNION OF INDIA,
REPRESENTED BY THE SECRETARY,
MINISTRY OF CORPORATE AFFAIRS, "A" WING, SHASTRI
BHAVAN, RAJENDRA PRASAD ROAD, NEW DELHI 110 001.
2 JOINT SECRETARY,
MINISTRY OF CORPORATE AFFAIRS, "A" WING, SHASTRI
BHAVAN, RAJENDRA PRASAD ROAD, NEW DELHI 110 001.
3 THE REGIONAL DIRECTOR,
SOUTHERN REGION, MINISTRY OF CORPORATE AFFAIRS,
SHASTRI BHAVAN, BLOCK 1, VTH FLOOR, 26,
HADDOWS ROAD, CHENNAI 600 006.
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4 REGISTRAR OF COMPANIES, ERNAKULAM
COMPANY LAW BUILDING, KAKKANAD, KOCHI 682 021.
BY ADV SHRI.T.V.VINU, CGC
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
23.02.2026, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.20555 of 2021 3
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VIJU ABRAHAM, J.
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W.P.(C) No.20555 of 2021
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Dated this the 23rd day of February, 2026
JUDGMENT
The petitioner has approached this Court seeking the following
reliefs:
(i) To declare that Rule 3A and 23A of Ext.P3 Rules is
unconstitutional as it violates Articles 14, 19 and 21 of the
Constitution of India.
(ii) To declare that Ext.P3 Rules is applicable only to the
Companies which have been registered after the date of
commencement of Ext.P3 Rules.
(iii) To issue a writ of certiorari or any other appropriate
writ, order or direction quashing Ext.P7.
(iv) To issue a writ of mandamus or any other
appropriate writ or direction directing the 1 st respondent to notify
the petitioner company as a Nidhi Company under Ext.P2 Rules."
2. The learned Counsel on both sides submit that the issue
is covered by a judgment of this Court in Annamanada
Gramakshemam Nidhi Limited v. Union of India [2024 (3)
KHC 429), paragraph 18 of the said judgment, which is the
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operative portion, reads as follows:
"18. Since there is hardly in dispute at the bar, that
reasonable restrictions are permissible, if not necessary, I deem it
appropriate that these writ petitions be ordered with the following
directions;
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 cas-to-case basis
by the 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
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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.
Needless to say, until such time as the afore exercise is
completed and the resultant order communicated to the
petitioners - in case where they comply with direction (a) above
and make fresh application in "NDH 4" format, within the time
frame fixed in direction (b) above - the interim order granted by
this Court in these matters, will continue to hold field."
In terms of the judgment in Annamanada
Gramakshemam Nidhi Limited [supra], this writ petition is
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disposed of and the directions in the aforesaid judgment will
govern this case also.
Sd/-
VIJU ABRAHAM
JUDGE
sp/23/02/2026
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APPENDIX OF WP(C) NO. 20555 OF 2021
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE CERTIFICATE OF
INCORPORATION OF THE PETITIONER COMPANY.
Exhibit P1(A) TRUE COPY OF THE CERTIFICATE OF
INCORPORATION PURSUANT TO CHANGE OF NAME
ISSUED THROUGH E -MAIL BY THE OFFICE OF
THE 4TH RESPONDENT DATED 4.11.2020.
Exhibit P2 TRUE COPY OF THE NIDHI RULES 2014.
Exhibit P3 TRUE COPY OF THE AMENDED NIDHI RULES,
2019.
Exhibit P3(A) TRUE COPY OF THE NIDHI (2ND AMENDMENT)
RULES 2020.
Exhibit P4 TRUE COPY OF THE FOAM NDH-4 APPLICATION.
Exhibit P5 TRUE COPY OF THE SCREEN SHOT OF THE EMAIL
DATED 16.10.2020.
Exhibit P6 TRUE COPY OF THE SCREEN SHOT OF THE EMAIL
SENT BY THE PETITIONER COMPANY DATED
4.11.2020.
Exhibit P7 TRUE COPY OF THE ORDER DATD 26.4.2021
ISSUED BY THE DEPUTY DIRECTOR OF THE 1ST
RESPONDENT SRN NO. R 37085834/4/2020/CL-
VII.
Exhibit P8 TRUE COPY OF THE LETTER F. NO. 2/K-
244/2015-16 (NIDHI PART) DATED 4.3.2016 OF
THE 3RD RESPONDENT.
Exhibit P9 TRUE COPY OF THE INTERIM ORDER DATED
8.4.2021 IN W.P.C NO. 9099 OF 2021 OF THE
HON'BLE HIGH COURT OF KERALA.
