Comprehension
A question regarding the scope of Section 212 of the Companies Act, 2013 was considered in Serious Fraud Investigation Office v. Rahul Modi, [2019 SCC OnLine SC 423]. The court observed that the Central Government is empowered under Section 212(1)(c) of the Companies Act, 2013 to order investigation into the affairs of a company in public interest by the Serious Fraud Investigation Office (SFIO). Section 212(3) of the Companies Act provides that the investigation orders are required to be completed within the specified time. If it not so done, what should be the consequences and whether further proceedings or investigations shall be unlawful. The provision has to be seen in the context in which it occurs in the statute. Therefore, the stipulation of Section 212(3) regarding submission of the report ‘within such period as may be specified in the order’ is not to be taken as mandatory, but as purely directory. On the objective interpretation of the statutory provision, it cannot be said that on the expiry of that period the mandate in favour of SFIO must come to an end. If it was to come to an end, the legislation would have contemplated certain results thereof. In the absence of any clear stipulation, an interpretation that with the expiry of the period, the investigation must come to an end, will cause great violence to the scheme of legislation and with the expiry of mandate SFIO would also be powerless which would lead to an incongruous situation that serious frauds would remain beyond investigation.
Question: 1
As per the provision of Section 211(3) of the of the Companies Act, 2013, Director of Serious Fraud Investigation Office, shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs. The nature of the provision is
As per the provision of Section 211(3) of the of the Companies Act, 2013, Director of Serious Fraud Investigation Office, shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs. The nature of the provision is
Updated On: Jul 11, 2024
- Mandatory
- Purely directory
- Elective
- Non-binding
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The Correct Option is A
Solution and Explanation
The correct option is (A) : Mandatory
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Question: 2
Which principle of interpretation has been adopted by the court for the interpretation of Section 212(3) of the Companies Act, 2013 ?
Which principle of interpretation has been adopted by the court for the interpretation of Section 212(3) of the Companies Act, 2013 ?
Updated On: Jul 19, 2024
- Literal
- Liberal
- Strict
- Both (A) and (C).
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The Correct Option is B
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The correct option is (B) : Liberal
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Question: 3
The court has considered that the investigation beyond the time prescribed in the order of investigation shall be
The court has considered that the investigation beyond the time prescribed in the order of investigation shall be
Updated On: Jul 19, 2024
- Void
- Valid
- Irregular
- Unconstitutional
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The Correct Option is B
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The correct option is (B) : Valid
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Question: 4
As per the given excerpt, a strict interpretation of expression ‘within such period as may be specified in the order’ will
As per the given excerpt, a strict interpretation of expression ‘within such period as may be specified in the order’ will
Updated On: Aug 23, 2024
- Attain the intention of the legislation.
- Defeat the intention of the legislation
- Not prejudice the functions of the Serious Fraud Investigation Office
- Both (A) and (C)
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The Correct Option is B
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The correct option is (B) : Defeat the intention of the legislation
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Question: 5
Considering the expression of Section 212(6) of the Companies Act, 2013, an offence under Section 447 of the Companies Act, 2013 shall be
Considering the expression of Section 212(6) of the Companies Act, 2013, an offence under Section 447 of the Companies Act, 2013 shall be
Updated On: Aug 23, 2024
- Cognizable
- Non-cognizable
- Non-bailable
- Both (A) and (C).
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The Correct Option is D
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The correct option is (D) : Both (A) and (C).
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Question: 6
The expression ‘officers and employees’ under Section 212(5) of the of the Companies Act, 2013 denotes
The expression ‘officers and employees’ under Section 212(5) of the of the Companies Act, 2013 denotes
Updated On: Jul 11, 2024
- Existing employees of the company.
- Person who has been in employment of the company
- Persons who are or who have been in employment of the company.
- Only directors of the company.
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The Correct Option is C
Solution and Explanation
The correct option is (C) : Persons who are or who have been in employment of the company
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- The Hon’ble Supreme Court in the case of ‘Nil Ratan Kundu and another v. Abhijit Kundu’ 2008(3) Apex Court Judgements 232 (SC), while granting the custody to the maternal grandparents observed: In our judgement, the law relating to custody of a child is fairly well settled and it is this. In deciding a difficult and complex question as to custody of minor, a Court of law should keep in mind relevant statutes and the rights flowing therefrom. But such cases cannot be decided solely by interpreting legal provisions. It is a humane problem in live in relationship and is required to be solved with human touch. A Court while dealing with custody cases, is neither bound by statutes nor by strict rules of evidence or procedure nor by precedents. In selecting proper guardian of a minor, the paramount consideration should be the welfare and well-being of the child. In selecting a guardian, the Court is exercising parens patriae jurisdiction and is expected, may bound, to give due weight to a child’s ordinary comfort, contentment, health, education, intellectual development and favorable surroundings. But over and above physical comforts, moral and ethical values cannot be ignored. They are equally, or we may say, even more important, essential and indispensable consideration. If the minor is old enough to form an intelligent preference or judgement, the Court must consider such preference as well, though the final decision should rest with the Court as to what is conducive to the welfare of the minor.
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Before parting with the case, it is necessary to express our anguish over the ineffectiveness of the alternative mechanism devised for judicial review. The judicial review and remedy are the fundamental rights of the citizens. The dispensation of justice by the tribunal is much to be desired.
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(Extracts from Managing Director, Kerala Tourism Development Corporation Limited v. Deepti Singh and Ors., 2019 SC)- CLAT PG - 2025
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- Article 14 of the Constitution stipulates that the State shall not deny to any person equality before the law or the equal protection of laws within the territory of India. Article 15(1) states that the State should not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them. Article 15(4) stipulates that nothing in Article 15 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes. Article 16 deals with equality of opportunity in matters of public employment. Clause (1) of Article 16 guarantees equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State. Clause (2) stipulates that no citizen shall be discriminated in or be ineligible for any employment or office under the State on the grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them. Clause (4) of the provision states that nothing in Article 16 shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens, which in the opinion of the State, is not adequately represented in the services under the State. The purpose of the equal opportunity principle in Article 16(1) and the reservation provision in Article 16(4) has emerged as a focal point of the jurisprudence on reservations in this Court. A discussion of the journey of the competing models of equality that the Court has espoused and their evolution over the course of the years is necessary to understand the constitutional vision on equality.
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