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CS Professional · Corporate Restructuring, Valuation and Insolvency · Strike Off and Restoration of Name of the Company and LLP

Himalaya Growers Producer Company Ltd fails to commence business within one year of registration. The Registrar issues a show-cause notice to the company with a copy to all directors and then strikes off its name under section 378ZP(1). A member, Mr. Das, appeals to the Tribunal on the fortieth day after the order. Which statement is correct?

The appeal is valid because a member may appeal within sixty days of the order under section 378ZP(3), and day forty falls within that period. Under section 378ZP(4), the striking off order does not take effect until the appeal is disposed of.

  1. AThe appeal is within time, and the striking off order does not take effect until the appeal is disposed ofCorrect
  2. BThe appeal is within time, but the striking off takes effect immediately and continues during the appeal
  3. CThe appeal is barred because only the Producer Company, not a member, may appeal
  4. DThe appeal is barred because the limit is thirty days

Explanation

Section 378ZP(3) allows any aggrieved member to appeal to the Tribunal within sixty days of the order, so day forty is in time. Section 378ZP(4) provides that where an appeal is filed, the order of striking off shall not take effect until the appeal is disposed of. The option saying it takes effect immediately contradicts this.

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