Skip to content

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

Sahyadri Textiles Ltd applies to the Tribunal for confirmation of a matter under a provision of the Companies Act, 2013 that is silent on conditions. The Tribunal grants the confirmation but imposes a condition that the company file a compliance report within 60 days. Is the Tribunal entitled to do so?

Yes. Section 459(1) empowers the Tribunal, like the Central Government, to grant confirmation or approval subject to such conditions, limitations or restrictions as it thinks fit, unless the specific provision says otherwise. Silence in the provision does not prevent conditions, and applicant consent is not required.

  1. ANo, because conditions can be imposed only if the specific provision expressly authorises them
  2. BYes, under Section 459 it may grant the confirmation subject to such conditions as it thinks fit, absent anything contrary in the provisionCorrect
  3. CNo, only the Central Government can impose conditions on approvals
  4. DYes, but only with the written consent of the applicant company

Explanation

Section 459(1) lets the Central Government or the Tribunal accord approval, sanction, consent, confirmation, recognition, direction or exemption subject to conditions, limitations or restrictions it thinks fit, in the absence of anything to the contrary in the provision. Silence of the provision therefore does not bar conditions. Option A reverses the rule, and the Tribunal is expressly covered, so C is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Applications, Petitions and Appeals under Companies Act, 2013 shows your real accuracy, how long you take and where you lose marks.

Practise Applications, Petitions and Appeals under Companies Act, 2013Free diagnostic mock

More Applications, Petitions and Appeals under Companies Act, 2013 questions