CA Sumit Arora (CA) 14 May 2014
Bombay High Court slapped MCA for its irresponsible behaviour and made judgement that MCA new Rules are not effective and cannt be mandated from 01.04.2014. MCA Important observation made by Hon'ble Bombay High Court in the matter of Godrej Industries Limited on the "effectiveness" of rules prescribed by MCA under Companies Act, 2013. As many MCA rules are not available, hence in the opinion of the court they are not binding so far or at least from 1st April 2014 and till such time as these rules are gazette, or there is some provision made for the dispensation of official gazette notification, none of the rules in the Ministry of Corporate Affairs PDF document that are not yet gazette can be said to be in force.” Below reproduced is Para no. 23 of the said Judgement for ready reference for all : "23. A final word about the manner in which these rules and sections are purportedly being brought into force. The website of the Ministry of Corporate Affairs has, on its front page, a link to a single scanned PDF file entitled “COMPANIES ACT 2013 - STATEMENT OF NOTIFICATION OF RULES”. Some 21 rules are listed.
They are all said to be effective 1st April 2014. Several of these are not yet gazetted; at least I have not been able to find any gazette. I do not see how any such rules can be made effective on this basis where a ministry simply puts up some scanned document under the signature of one of its officers but sans any publication in the official gazette. That publication is not an idle formality. It has a well-established legal purpose. That purpose is not and cannot be achieved in this ad-hoc manner. Therefore, till such time as these rules are gazetted, or there is some provision made for the dispensation of official gazette notification, none of the rules in the Ministry of Corporate Affairs PDF document that are not yet gazetted can be said to be in force."