DELHI CLOTH AND GENERAL MILLS ETC. versus UNION OF INDIA ETC.

DELHI CLOTH AND GENERAL MILLS ETC. versus UNION OF INDIA ETC.

Section 58A of the Companies Act, 1956 and Rule 3A of the Companies (Acceptance of Deposit) Rules, 1975 are valid, not arbitrary, do not violate Articles 14 and 19(1)(g), constitute a reasonable regulatory measure to secure deposit repayment and curb abuse, are within legislative competence, and are not ultra vires or excessively delegated.

Parties
Petitioner: Delhi Cloth and General Mills, etc.; Respondent: Union of India, etc.
Jurisdiction
India
Judgment Date
21 July 1983
Procedural Posture
Writ Petition and Civil Appeal / Final Judgment
Outcome
petitions and appeals dismissed
Legal Topics
Constitutional Validity, Delegated Legislation, Deposits Regulation, Fundamental Rights, Legislative Competence
Company Law Constitutional Law Administrative Law Constitutional Validity Delegated Legislation Deposits Regulation Fundamental Rights Legislative Competence

Case Brief

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Parties

Delhi Cloth and General Mills, etc.

Petitioner

Union of India, etc.

Respondent

Procedural Posture

Writ Petition and Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether Section 58A of the Companies Act, 1956 and Rule 3A of the Companies (Acceptance of Deposit) Rules, 1975 are constitutionally valid
  2. 2 Whether the obligations imposed violate Articles 14 and 19(1)(g) of the Constitution
  3. 3 Whether Rule 3A is ultra vires Section 58A

Ratio Decidendi

Section 58A of the Companies Act, 1956 and Rule 3A of the Companies (Acceptance of Deposit) Rules, 1975 are valid, not arbitrary, do not violate Articles 14 and 19(1)(g), constitute a reasonable regulatory measure to secure deposit repayment and curb abuse, are within legislative competence, and are not ultra vires or excessively delegated.

Court Disposition

petitions and appeals dismissed

Orders

  • Petitions and appeals dismissed with costs in each matter.