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        Companies Law

        1993 (4) TMI 220 - Commission - Companies Law

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        Statutory refund procedure for unpaid dividend must be examined before relief, with remand ordered for fresh consideration. A consumer complaint concerning refund of unpaid dividend transferred to the Registrar of Companies was remanded because the District Forum directed ...
                          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.

                              Statutory refund procedure for unpaid dividend must be examined before relief, with remand ordered for fresh consideration.

                              A consumer complaint concerning refund of unpaid dividend transferred to the Registrar of Companies was remanded because the District Forum directed refund without examining the statutory procedure under rule 6, including the requirement of an application in Form No. II. The Commission noted that the objections on compliance with the prescribed refund mechanism and the Forum's jurisdiction had not been considered. The District Forum's order was therefore set aside and the matter sent back for fresh consideration after notice to the parties and decision on the objections in accordance with law.




                              Issues: Whether the District Forum could direct refund of unpaid dividend without considering the statutory requirement of an application in Form No. II under the relevant rules, and whether the matter required reconsideration in light of the objections raised.

                              Analysis: The complaint concerned unpaid dividend transferred to the Registrar of Companies under the Companies Act, 1956. The record showed that no application in Form No. II under rule 6 had been made for refund, and the objections regarding the statutory procedure and the forum's jurisdiction had not been examined by the District Forum.

                              Conclusion: The order of the District Forum was set aside and the matter was remanded for fresh consideration after notice to the parties and after deciding the objections in accordance with law.


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                              ActsIncome Tax
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