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2017 (10) TMI 1404 - Tri - Companies LawRectification of register of members of the applicant/petitioner-company in particular reference to the cancellation of equity shares - violations of the FEMA Regulations - whether the company is justified in filing the present petition under section 59 of the Companies Act, 2013, that too, without complying with conditions prescribed under the RBI letter dated March 1, 2017? - Held that:- Default in question is not intentional or deliberate. As pointed out by the RBI the company, in the first instance, has to comply the objections raised by it, duly following the relevant articles of association of the company, then it can apply for compounding of contravention in question. While admitting violation of the FEMA Regulations, the company has not taken action in consonance with the memorandum and articles of association of the company and the Companies Act, 2013 except obtaining a letter dated March 3, 2000 from Dr. Raju Reddy stating that he has no objection for rectification of register of members. Ultimately, it is law that should prevail on the issue in question. The petitioner-company has failed to follow its memorandum and articles of association of the company, the relevant provisions of the Companies Act, 2013 and FEMA Regulations, 2000 so as to make good violations of the FEMA Regulations as mentioned supra. Therefore, the present petition filed under section 59 of the Companies Act is not maintainable, and it is reliable to be rejected for the grounds mentioned supra. In fact, the concerned authorities have to initiate appropriate action by this time against the company, for violation of FERA Regulations. In view of the above facts and circumstances of the case, the company petition is hereby dismissed
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