The Hindu Business Line : Business law

This is with reference to "First law of business is to know the law right" (Business Line, October 7). The article in is interesting in that it raises several legal issues that have arisen in the Federal Bank proceedings.

The opinion Mr. N.R. Sridharan has been cited on many issues. However, one is unable to find any specific case in Ramayya that has direct precedent for the question on the timeliness of a notice under Section 257 of the Company Act. One tends to think that Section 10 of the General Clauses Act does not apply to Section 257 for the reason that the two Sections are significantly different in their phrasing and apply to different situations. My analysis of the sections follows:

Section 10 of the GC Act says that, where by any Central Act or regulation made after the commencement of the GC Act, any act or proceeding is directed or allowed to be done or taken in any court or office on a certain day or within a prescribed period, then, if the court or office is closed on that day or the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time if it is done or taken on the next day afterwards on which the court or office is open. The Section does not apply to any act or proceeding to which the Limitation Act applies.

Section 257 of the Company Act permits a person other than a retiring director to stand for a directorship at any general meeting if he or some member proposing him has, not less than 14 days before the meeting, left at the office of the company a written notice under his hand signifying his candidature or the intention of such member to propose him as a candidate for a directorship.

There is a difference between the wording of the two Sections. Section 10 of the GC Act applies to cases (other than under the Limitation Act) where the act or proceeding in question is to be done on a certain day or within a prescribed period.

M S Parthasarathy

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