TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether a petition for winding up could be entertained in respect of an association formed in contravention of section 4(2) of the Indian Companies Act, 1913, and whether such an association could be treated as an unregistered company under Part IX of the Act.
Analysis: Section 4(2) of the Indian Companies Act, 1913 prohibited formation of a non-banking association of more than twenty persons for the object of acquisition of gain unless registered. The association in question was found to have more than twenty members and to have been formed without registration, bringing it within the statutory prohibition. The reasoning proceeded on the basis that the court should not lend recognition to an association whose formation the statute forbade. Part IX dealing with unregistered companies was understood to apply only to associations which might legitimately remain unregistered, not to bodies formed in defiance of the Act. The definitions in sections 2(2), 2(7), and 270 were read together to show that the winding up machinery was not intended to validate or assist an illegal association.
Conclusion: The petition for winding up was not maintainable and was dismissed.
Ratio Decidendi: A court will not entertain a winding up petition in respect of an association formed in violation of a statutory prohibition on formation, and the provisions relating to unregistered companies do not confer legitimacy on an illegal association.
TaxTMI 
