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

In a proceeding against Mr. Dinesh Pillai, CFO of Ganga Steels Ltd, the court is inclined to excuse him from liability for a breach of duty. Before granting relief under Section 463, what must the court do?

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

  1. AObtain a written certificate from the statutory auditor
  2. BServe notice requiring the Registrar and such other persons as it thinks necessary to show cause why relief should not be grantedCorrect
  3. CWait for approval from the company's general meeting
  4. DSeek the prior sanction 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 any other persons it thinks necessary to show cause why relief should not be granted. No auditor certificate, general meeting approval or Central Government sanction is mentioned.

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