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CS Professional · Compliance Management, Audit and Due Diligence · Relief and Remedies

A High Court is hearing an application by Deepak, an officer of Ganga Steels Ltd, seeking relief under Section 463. The court is satisfied that he acted honestly and reasonably and is inclined to excuse him. Which step must the court complete before granting relief?

The court must first serve notice, in the manner it specifies, requiring the Registrar and any other persons it considers necessary to show cause why relief should not be granted. Section 463(3) makes this a precondition to relief under either sub-section (1) or (2).

  1. AServe notice requiring the Registrar and any other persons it thinks necessary to show cause why relief should not be grantedCorrect
  2. BObtain written consent of the company's shareholders
  3. CObtain a certificate from the Institute of Company Secretaries of India
  4. DWait for a one-year period to lapse from the default

Explanation

Section 463(3) bars any relief under sub-section (1) or (2) unless the court has served notice requiring the Registrar and other persons it thinks necessary to show cause. No shareholder consent or waiting period is stated.

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