TaxTMI 
TaxTMI 
2017 (7) TMI 2
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....d order, it was observed by respondent No.1 that its office had received various complaints stating that the petitioner company had not been carrying out its business as provided in the Memorandum of Association approved under Section 25 of the Companies Act, because of which sub-clause (b) of sub-section (8) of Section 25 was attracted requiring to cancel the licence. 3. It appears that respondent No.1 had granted the licence to the petitioner company by his order dated 05th April, 2006. It was provided and directed in the said order that the applicant Association be registered as a company with limited liability without addition of word limited/private limited, subject to the conditions stated in the order. Thereafter the petitioner wa....
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....se (a) of sub-section (8) was found to have been contravened. He sought to highlight that it was only the Proviso to Section 25(7) which provided for giving of notice, and that sub-section (8) is independent not attached with requirement of notice. 5. In order to appreciate the the only argument advanced on the count of breach of natural justice, adverting to the relevant provisions would be appropriate. Section 25 of the Companies Act, 1956 is in respect of power of the Central Government to dispense with 'Limited' in the name of charitable or other company. It only provides that where it is proved to the satisfaction of the Central Government that an association satisfies the conditions in subsections (1) to (3), the Central Go....
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....n is in force shall not alter the provisions of its memorandum with respect to its objects except with the previous approval of the Central Government signified in writing. (b) The Central Government may revoke the licence of such a body if it contravenes the provisions of clause (a); (c) In according the approval referred to in clause (a), the Central Government may vary the licence by making it subject to such conditions and regulations as that Government thinks fit, in lieu of, or in addition to, the conditions and regulations, if any, to which the licence was formerly subject. (d) Where the alteration proposed in the provisions of the memorandum of a body under this sub-section is with respect to the objects o....
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....e two sub-sections where they both deal with revocation of licence. These provisions have conjoint and interactive reading. Though sub-section (7) and sub-section (8) are engrafted as separate and different sub-sections, projection of the both is for same purpose-which is for revocation of licence. Revocation of licence is contemplated under subsection (8)(b) if the licencee body contravenes provision of sub-section (8)(a) namely that it alters the provisions of its Memorandum with respect to its objects without prior permission of the Central Government. This being so, when sub-section (8)(b) also empowers the Central Government to revoke the licence, the requirement of notice and opportunity of being heard as per the Proviso to sub-sectio....
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....d for, or where the provision is silent in that regard, has been developed with reference to entailment of civil consequence only. Where a person or body suffers due to an action or decision, giving him or it an opportunity of being heard, would lend reasonability to the action. In S.K. Bhargava v Collector, Chandigarh [(1998) 5 SCC 170], the Supreme Court extended the concept of reading natural justice to the provision of Section 3 of the Haryana Public Moneys (Recovery of Dues) Act, 1979. 6.1 The Supreme Court in S.K. Bhargava (supra) observed that even though Section 3 does not expressly provide for an opportunity of being heard, principles of natural justice must be read into it. The instances where the Supreme Court read into the pr....