Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2018 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 1900 - GAUHATI HIGH COURTShell company - statutory definition of shell company in either fiscal or in the penal statutes - HELD THAT:- Petitioner No.1 company to be a shell company. This declaration of petitioner No.1 as a shell company as discussed above would entail adverse consequences upon the petitioners. As already discussed the expression shell company as is understood in popular parlance. Therefore, before declaring a company to be a shell company, it was necessary on the part of the Ministry of Corporate Affairs to have at least put the company on notice that it was being branded as a shell company but that was not done in the instant case. Petitioners has referred to the averments made in the writ petition and submitted that petitioner No.1 company is an old and reputed company owning 14 Tea Estates in the State of Assam producing 11 million kgs of tea every year. It has a labour force of 20 thousand of its own. Prima facie, branding a company like the petitioner No.1 company as a shell company and thereafter initiating proceeding to prove the same virtually amounts to giving a finding first and thereafter initiating proceeding to justify the finding, like a post decisional hearing. Court is, therefore, of the view that an interim order is called for in this case. Accordingly, impugned letter dated 09.06.2017 in respect of petitioner No.1 company shall remain stayed.
|