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Court Criticizes Penalty u/s 383(1A) of Companies Act for Lack of Evidence and Negligence in Proceedings.

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....Penalty u/s 383(1A) of the Companies Act, 1956 - the company did not have a Whole-time secretary - non-application of mind - order passed only on the basis of a bare complaint without any supporting documents - It is not a case of inadvertence but rather sheer continued negligence which has caused serious failure and prejudice to the petitioners - The application of mind at the time of taking cognizance and framing of notice is sine qua non. - HC....

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