On Tuesday, the National Company Law Tribunal (NCLTMumbai)’s bench will hear a plea filed by the Ministry of Corporate Affairs against Videocon Industries Ltd and other related group entities.
Under Sections 241 and 242 of the Companies Act, 2013, the ministry has applied with the National Company Law Tribunal (NCLT) in Mumbai.
The clause allows the central government to act against a firm if its operations are deemed to be detrimental to the general public’s interests.
“The central government, if it is of the opinion that the operations of the company are being handled in a way injurious to public interest, it may apply to the tribunal for an order under this chapter,” says Section 241 of the Companies Act of 2013.
If the adjudicating authority is determined that “the company’s affairs have been or are being managed in a way detrimental or oppressive to any member or members or harmful to the public interest,” Section 242 of the Act allows the company management to be suspended.
It should be mentioned that a resolution expert is now managing the firm’s affairs because the company is going through a corporate insolvency resolution process.
