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        Companies Law

        1983 (5) TMI 197 - HC - Companies Law

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        Foreign company registration under the Companies Act denied where Part IX does not extend to entities incorporated outside India. The Companies Act, 1956 was construed as distinguishing Indian-incorporated companies from foreign companies, and section 565(1)(b) was read with the ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                              Foreign company registration under the Companies Act denied where Part IX does not extend to entities incorporated outside India.

                              The Companies Act, 1956 was construed as distinguishing Indian-incorporated companies from foreign companies, and section 565(1)(b) was read with the definition of "company" and the separate treatment of foreign companies. On that construction, the provision did not give a foreign company incorporated outside India any right to register under Part IX, because registration under the Act was confined to entities within the statutory scheme of companies capable of registration. A foreign company therefore retained its separate identity and did not become a company under the Act merely by registration; the challenge to refusal of registration failed.




                              Issues: Whether a foreign company incorporated outside India could be registered under Part IX of the Companies Act, 1956 by virtue of section 565(1)(b).

                              Analysis: The relevant statutory scheme distinguished between companies incorporated in India and foreign companies incorporated outside India. Section 565(1)(b) was read in the context of the Act as a whole, including the definition of "company" in section 3 and the separate treatment of foreign companies in Chapter VI. On that construction, the words "in force in India" qualified both the reference to an Act of Parliament of the United Kingdom and the reference to letters patent, and the provision did not confer a right on a foreign company to be registered as a company under the Act. A foreign company retained its identity as such and did not become a company as defined in the Act merely by registration.

                              Conclusion: The foreign company was not entitled to registration under Part IX of the Companies Act, 1956, and the challenge to the refusal of registration failed.

                              Ratio Decidendi: Section 565(1)(b) does not enable a company incorporated outside India to register as a company under the Companies Act, 1956; the provision applies only to entities that fall within the statutory scheme of companies capable of registration under the Act.


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