Provision of sec 205A and 205C related to unpaid dividend cannot be consider as arbitrary and violative to Article 14

Last updated: 28 April 2012

Court :
HIGH COURT OF DELHI

Brief :
The Companies (Amendment) Ordinance, 1998 (No.19 of 1998) sub-section (5) of Section 205A of the Companies Act (hereinafter referred to as the „Act‟), 1956 was amended as regards transfer of unpaid dividend account of a company to the fund established under Section 205C. The Investor Education and protection Fund (IEPF) was established under Section 2005C which was introduced by Companies Amendment Act, 1999 with effect from 31.10.1998. Circular was issued by the Department of Company Affairs, now under the respondent No.1, which stated that all amounts which have remained unpaid/unclaimed for a period of seven years from the date of their transfer to the „unpaid dividend account‟ are required to be transferred to IEPF fund by 31.10.2001.

Citation :
NIVEDITA SHARMA . . . PETITIONER Through: Petitioner-in-person.VERSUS MINISTRY OF CORPORATE AFFAIRS & ORS. . . .RESPONDENTS