TGN Kumar Vs Registrar of Companies (Kerala High Court)
The Kerala High Court dismissed a writ appeal challenging the judgment of a Single Judge that had declined to issue directions against the Directors of the Nair Service Society for alleged non-compliance with the Companies Act, 1956 and the Companies Act, 2013.
The appellant, a member of the Nair Service Society through Karayogam No. 1639 at Vennala, Ernakulam, contended that the Society was originally registered under the Travancore Companies Act, 1914 and, after the Companies Act, 1956 came into force, was deemed to be registered under Section 25 of that Act. According to the appellant, the Society was violating the Companies Act by denying members the right to attend annual general meetings, vote, contest for the post of Director, and by permitting Directors to function without Director Identification Numbers (DINs). The appellant relied upon Sections 152(3), 154, 158 and 164 of the Companies Act, 2013 and sought directions requiring statutory authorities to initiate action against the Directors and compel compliance with the Companies Act, 2013.
The Single Judge dismissed the writ petition on the preliminary ground that a writ of mandamus could not be issued in the absence of any prior demand made to the statutory authorities and any refusal by them to perform their alleged duty. The decision relied upon the principles governing issuance of mandamus laid down in judicial precedents.
