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CS Professional · Drafting, Pleadings and Appearances · Applications, Petitions and Appeals under Companies Act, 2013

Orion Pharma Ltd petitions the NCLT for an approval. The Tribunal grants it but imposes conditions. Later, Orion breaches one condition. Which statement correctly reflects the Act, absent any contrary provision?

The Tribunal may rescind or withdraw the approval. Section 459(1) allows it to grant approvals subject to conditions, limitations or restrictions it thinks fit, and on contravention of any such condition it can rescind or withdraw the approval, unless the provision says otherwise.

  1. AThe Tribunal may rescind or withdraw the approval for contravention of the conditionCorrect
  2. BThe conditions are void because the petition did not propose them
  3. COnly the Appellate Tribunal can rescind the approval
  4. DThe Tribunal may only impose a fee for the breach

Explanation

Section 459(1) lets the Tribunal grant approval, sanction, consent, direction or exemption subject to conditions it thinks fit, and rescind or withdraw it on contravention of any condition. The petition need not propose the conditions.

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