TaxTMI 
TaxTMI 
2025 (6) TMI 864
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....JAWALKAR, J.) 1. Heard learned Counsel for the Petitioner and learned Deputy Solicitor General of India for all Respondents. 2. RULE. Rule made returnable forthwith. Heard finally with the consent of the learned Counsel appearing for the parties. 3. By this Petition, the Petitioner is challenging a Communication dated 23.10.2023, rejecting the NDH-4 Form issued by the Assistant Director, Ministry of Corporate Affairs/Respondent No. 3. 4. The contention of the Petitioner is that the Petitioner is a "Nidhi Company" incorporated under the provisions of Section 406 of the Companies Act, 2013. The said company is incorporated vide Certificate of Incorporation on 15.07.2019 (Annexure-A, Page-43). After submitting statutory Form 20A, the Peti....
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....late fee is imposed. Our attention is also drawn to the Annexure-F (page-112), a Circular No.12/2020, by which time is extended to submit documents till 30.09.2020 in view of outbreak of Covid-19 Pandemic. The said period was further extended upto 31.12.2020 vide Circular No. 30/2020. The Petitioner has submitted NDH-1 Form on 22.12.2020 (page-107), even there also no late fee imposed as the same was filed within extended period. 7. In fact, there is no specific notice to show cause is issued to the Petitioner pointing out any compliance remained to be complied. There was only one communication by way of e-mail dated 16.04.2021, which appears to be a common notice issued to all concerned. There is no specific notice to the Petitioner compa....
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....is no specific notice issued, the ground of rejection would survive. 10. So far as the third ground for rejecting the Form NDH-4 is concerned, it is alleged that the company has not furnished the Auditor Certificate with Form AOC-4 for financial year 2021-22, thereby violated Rule 22 of the Nidhi Rules. Learned Counsel for the Petitioner submitted that in fact, the Auditor Certificate was obtained but it is inadvertently not annexed along with the Form AOC-4. In absence of any specific notice for compliance, the order of rejection of Form NDH-4 is in violation of principle of natural justice as well as contrary to the provisions of Nidhi Rules. In fact, there is no provision or guidelines in the Nidhi Rules under what circumstances the NDH....
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.... order, it appears that there is no consideration to the extended period due to outbreak of Covid-19 Pandemic. Though, learned Counsel for the Respondents Deputy Solicitor General of India argued that the Authority is empowered to reject the Form NDH-4, there is no illegality in the order and even subsequent events can be taken into account for rejection of such NDH-4 Form. In our considered opinion, before taking such drastic steps of rejection, an opportunity of explanation as well as if there is any deficiency, opportunity for compliance is required to be given to the Petitioner. There is provision of imposing penalty for non-compliance, however, recourse of rejection of NDH-4 Form is unwarranted specifically when there is no show cause ....