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Kerala High Court

Goodwin Nidhi Limited vs Union Of India on 8 November, 2023

Author: Devan Ramachandran

Bench: Devan Ramachandran

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                  PRESENT

               THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN



       Wednesday, the 8th day of November 2023 / 17th Karthika, 1945

                          WP(C) NO. 37058 OF 2023
PETITIONER:

     GOODWIN NIDHI LIMITED DOOR NO 206, WARD NO XI, THRISSUR CORPORATION,
     ACC BUILDING OLLUR MAIN ROAD, THRISSUR DISTRICT. REPRESENTED BY ITS
     MANAGING DIRECTOR, PIN - 680306

RESPONDENT:

  1. UNION OF INDIA, REPRESENTED BY THE SECRETARY,MINISTRY OF CORPORATE
     AFFAIRS,"A" WING, SHASTRI BHAWAN, RAJENDRA PRASAD ROAD, NEW DELHI.,
     PIN - 110001
  2. DEPUTY DIRECTOR, MINISTRY OF CORPORATE AFFAIRS,"A" WING, SHASTRI
     BHAWAN, RAJENDRA PRASAD ROAD, NEW DELHI., PIN - 110001
  3. JOINT SECRETARY, MINISTRY OF CORPORATE AFFAIRS, CL -VII, "A" WING,
     SHASTRI BHAWAN, RAJENDRA PRASAD ROAD, NEW DELHI, PIN - 110001
  4. REGIONAL DIRECTOR, (SOUTHERN REGION) MINISTRY OF CORPORATE AFFAIRS,
     SHASTRI BHAVAN, BLOCK-1, V FLOOR,26, HADDOWS ROAD, NEW DELHI., PIN -
     110001
  5. REGISTRAR OF COMPANIES, ERNAKULAM ,COMPANY LAW BUILDING, KAKKANAD,
     COCHIN ERNAKULAM., PIN - 682021
  6. ASSISTANT DIRECTOR ,MINISTRY OF CORPORATE AFFAIRS, "A" WING, SHASTRI
     BHAWAN,RAJENDRA PRASAD ROAD, NEW DELHI, PIN - 110001
  7. DIRECTOR GENERAL OF POLICE, POLICE HEAD QUARTERS, VAZHUTHAKKAD,
     THIRUVANANTHAPURAM., PIN - 695010


     Writ petition (civil) praying inter alia that in the circumstances
stated in the affidavit filed along with the WP(C) the High Court be
pleased to direct the respondents to refrain from taking any coercive
action against the petitioner company and permit the petitioner company to
continue as Nidhi company by limiting the enrollment of new members to 10%
of the existing membership of the company and also permit the petitioner
company to transfer the shares without raising the share capital beyond
10% of the existing share capital, pending disposal of the writ petition.

     This petition coming on for admission upon perusing the petition and
the affidavit filed in support of WP(C) and upon hearing the arguments of
M/S LINDONS C.DAVIS, E.U.DHANYA, N.S.SHAMILA, RAJITH DAVIS, CHINJU P.
JOYIES Advocates for the petitioners, DEPUTY SOLICITOR GENERAL OF INDIA
for the Respondents 1 to 6 and of GOVERNMENT PLEADER for R7, the court
passed the following:
                            DEVAN RAMACHANDRAN, J.
                    ---------------------------------------------
                             WP(C) No. 37058 of 2023
                       ----------------------------------------------
                         Dated this the 08th day of November, 2023

                                        ORDER

Admit.

2. The learned Deputy Solicitor General of India takes notice for the respondents 1 to 6 and the learned Government pleader takes notice for the and 7th respondent.

3. List on 24.11.2023; until which time, all coercive action against the petitioner shall stand deferred; however, clarifying that they shall not enroll any new members beyond 10% of the existing membership.

4. It shall also be ensured by the petitioner that all deposits and loans to new members will be in compliance with the guidelines provided under the Companies Act 1956, as also the Nidhi Rules, 2014; and I leave liberty to the respondents to take necessary action, if there is any violation in this regard.

The petitioner is also directed not to create any charge over the deposit of the members and they will be obligated to file returns as required in law, which will be subject to further orders in this case.

Sd/-DEVAN RAMACHANDRAN, JUDGE lsn 08-11-2023 /True Copy/ Assistant Registrar