Section 246 of the Companies Act, 2013
Section 246 of the Companies Act, 2013 deals with the procedure for application under Section 245 (which is about relief in cases of oppression, mismanagement, or winding up on just and equitable grounds).
Section 246 – Procedure for Application under Section 245
Filing of Application:
The application under Section 245 must be made to the National Company Law Tribunal (NCLT).
Notice to Company and Other Parties:
On receipt of the application, the Tribunal shall issue a notice to:
The company,
The members, or
Other parties concerned.
Hearing and Inquiry:
The Tribunal will conduct a hearing and may hold an inquiry into the matters alleged in the application.
Order by Tribunal:
After hearing the parties and considering the facts, the Tribunal may pass such order as it thinks fit, which could include:
Regulating the company’s affairs in the future,
Removal of directors or managers,
Purchase of shares,
Or even winding up the company on just and equitable grounds.
Time frame:
The Tribunal shall endeavor to dispose of the application within a period of 6 months from the date of receipt of the application.
Summary:
Section 246 sets out the procedural steps that the NCLT follows when an application under Section 245 is made.
It ensures that the company and affected parties get notice and opportunity to be heard.
The Tribunal must aim to dispose of such cases within 6 months.
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