ESKAY LAB LTD Vs. REGISTRAR OF COMPANIES KARNATAKA

JUDGEMENT

(1.) Messrs. Eskay Lab Limited , formerly known as M/s. Smith Kline & French (India) Ltd., a company incorporated in the United Kingdom, the petitioner herein , has applied in this petition filed under article 226 of the Constitution for a writ of certiorari challenging annexure "C" bearing No. STA(K)/SKF/NR/80 dated February 13, 1981. The petitioner has also applied for a writ of mandamus directed against the respondent, the Registrar of Companies in Karnataka, Bangalore, for a direction to him to register the petitioner company as a private limited company under Part IX of the Companies Act, 1956 ("the Act").

(2.) The petitioner is a company registered and incorporated in England under the provisions of the Companies Acts, 1948 to 1967. It is having its registered office at 1, Surrey Street London, W.C.1, England . It is carrying on business through its branch in India having its office and factory at Devanahalli Road, off Old Madras Road, Bangalore.

(3.) The Foreign Exchange Regulation Act, 1973, was brought into force during that year. Thereafter, the petitioner applied to the Reserve Bank of India for permission under section 29(2)(a) of the Act of 1973 for carrying on its existing activities in India. After some correspondence, the Reserve Bank wrote a letter dated October 5, 1978 (annexure "A"), to the petitioner calling upon it to comply with certain conditions mentioned therein, one of them being that the Indian branch of the petitioner company should be converted into an Indian company with non-resident interest in the equity capital not exceeding 40 per cent. within a period of one year from the date mentioned therein (in the letter).