Only members eligible for waiver under Companies Act. Non-members cannot seek relief. The Tribunal ruled that only members, not non-members, have the right to seek waiver under Section 244 of the Companies Act, 2013. Despite arguments ...
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Only members eligible for waiver under Companies Act. Non-members cannot seek relief.
The Tribunal ruled that only members, not non-members, have the right to seek waiver under Section 244 of the Companies Act, 2013. Despite arguments citing legal decisions, the Tribunal emphasized that the provisions clearly state that only members can apply under Section 241 and that waiver can be granted on a member's application, not a third party's. As the applicant was a non-member, the Tribunal rejected the application, concluding that non-members cannot maintain an application under Section 244 of the Companies Act, 2013.
Issues: 1. Company application for waiver under Sections 241-242 of Companies Act, 2013. 2. Whether a non-member can seek waiver under Section 244 of the Act.
Analysis: 1. The company filed an application under Sections 241-242 of the Companies Act, 2013, seeking waiver of requirements to maintain the application. The application highlighted mis-governance in the private and corporate sector, focusing on public interests and financial impacts. Allegations were made against the respondents regarding asset diversion and fraud during mergers. The petitioner emphasized the serious nature of the complaints and the need for waiver to file a petition addressing oppression and mismanagement.
2. The key issue revolved around whether a non-member could seek waiver under Section 244 of the Act. The Tribunal examined the provisions of Section 244(1) and (2) which outline the right to apply under Section 241, specifying conditions for members to file petitions based on share capital or total number of members. The proviso allowed the Tribunal to waive requirements to enable members to apply under Section 241. The applicant contended that a non-member could seek waiver under the proviso, citing decisions from NCLT and High Courts. However, the Tribunal held that only members could seek waiver, as per the provisions of the Act.
3. The applicant's counsel argued that the proviso to Section 244 empowered non-members to seek waiver, citing various legal decisions. However, the Tribunal disagreed, emphasizing that Section 244(1) clearly states that members have the right to apply under Section 241. The proviso also specified that waiver could be granted on the application of a member, not a third party. As the applicant was a non-member, the Tribunal rejected the application, concluding that a non-member cannot maintain an application under Section 244 of the Companies Act, 2013.
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