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Union of India - Section

Section 38 in Indian Companies Act, 1913

38. Power of Court to rectify to register.

(1)If:-
(a)the name of any person is fraudulently or without sufficient cause entered in or omitted from the register of members of a company; or
(b)Default is made or unnecessary delay takes place in entering on the register the fact of of any person having ceased to be a member, the person aggrieved, or any member of the company, [lie company, may apply to the Court for rectification of the register.
(2)The Court may either refuse the application or may order rectification of the register and payment by the company of any damages sustained by any aggrieved, and may make such order costs as it in its discretion thinks fit.
(3)On any application under this section the Court may decide any question relating to the title of person who is a party to the application to have his name entered in or omitted from the register, the question arises between members or alleged iiieinbcrs, or between members or alleged members on if one hand and the company on the other hand; and generally may decide any question necessary 01 expedient to be decided for rectification of the register:Provided that the Court may direct an issue to be issue in which any question of law may be raised; and an appeal from the decision on such an issue shall lie in the manner directed by the Code of Civil Procedure, 1908, on the grounds mentioned in section 100 of that Code.