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

A High Court is hearing an application by Ms. Neha Iyer, a company secretary of Ganga Foods Ltd., for relief from liability for a compliance default. The court is inclined to excuse her partly. Before granting any relief, what must the court do under the Companies Act, 2013?

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

  1. AObtain a certificate of good conduct from the ICSI
  2. BServe notice requiring the Registrar and any other necessary persons to show cause why relief should not be grantedCorrect
  3. CWait for the Registrar to file a prosecution complaint first
  4. DObtain the prior consent of the Central Government

Explanation

Section 463(3) bars any court from granting relief under sub-section (1) or (2) unless it has, by notice served in the manner it specifies, required the Registrar and such other persons as it thinks necessary to show cause why relief should not be granted. No ICSI certificate, prosecution complaint or Central Government consent is required.

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