Colachel Vicariate Nidhi Limited Vs Union of India (Madras High Court)
NDH-4 Applications to Be Reconsidered as Court Orders Fresh Hearing on Compliance Defects; Madras High Court Grants Relief to Nidhi Companies After Delay in NDH-4 Rejection Orders; Court Directs Fresh Decision on NDH-4 Rejections After Petitioners Seek Chance to Explain Defects; Madras High Court Leaves Validity of Nidhi Rule Amendments Open While Ordering Reconsideration of NDH-4 Applications.
The Madras High Court disposed of writ petitions filed by Nidhi companies challenging orders rejecting their applications in e-Form NDH-4. The petitioners sought directions to accept the forms and also questioned the validity of amendments made to Section 406 of the Companies Act, 2013, and certain provisions inserted through the Nidhi (Amendment) Rules, 2019 and 2022.
During the hearing, both sides submitted that the issue was already covered by a Division Bench judgment dated 20.03.2025 in a batch of writ petitions. In that earlier decision, the petitioners had restricted their challenge and requested an opportunity to submit replies and explanations regarding defects pointed out in the rejection orders. The Division Bench observed that the applications filed in Form NDH-4 had been rejected after considerable delay and noted that the petitioners were willing to comply with the defects referred to in the impugned orders.
