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

Sagar Steels Ltd's counsel is drafting the prayer in a petition before the NCLT. The company wants an exemption granted. Under the Act, how may the Tribunal respond to a petition seeking an exemption?

The Tribunal may grant the exemption subject to such conditions, limitations or restrictions as it thinks fit, unless the specific provision says otherwise. Section 459(1) gives this power, so a prayer for exemption should not assume an unconditional order.

  1. AIt must grant it exactly as prayed, without conditions
  2. BIt may grant it subject to such conditions, limitations or restrictions as it thinks fit, absent a contrary provisionCorrect
  3. CIt can only refer the matter to the Central Government
  4. DIt may grant it only if the petition proposes the conditions

Explanation

Section 459(1)(c) and the closing words allow the Tribunal to grant exemption subject to conditions, limitations or restrictions it thinks fit, unless something contrary is provided. So the prayer should anticipate conditions and not demand an unconditional order.

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