DINESH SAINI Vs. UOI

JUDGEMENT

(1.) Section 210 of the Companies Act, 1956 to the extent it is relevant for our purpose requires a company to hold its Annual General Meeting for considering profits and loss account and balance sheet, within six months of the close of the financial year. The said section also permits the company to extend the financial year by upto three months. The period can be further extended by upto 6 months with the special permission of the Registrar of Companies.

(2.) In the case before this Court, in terms of Section 210 of the Companies Act, respondent no. 3 which is a company registered under the Companies Act, 1956 was required to hold its Annual General Meeting on or before 30.09.2011, its financial year being 01.04.2010 to 31.03.2011. No decision prior to 11.08.2011 was taken by respondent no. 3 company to extend the accounting year. It was only by way of resolution dated 11.08.2011 that the company decided to extend the accounting year 2010-11 by three months so as to end the said year on 30.06.2011.

(3.) The contention of the learned counsel for the petitioner is that the decision to extend the accounting year for a period upto three months can be taken by the company before the end of the financial year or at best before the period by which the financial year is to be extended, expires and not thereafter. In other words, according to the learned counsel, the decision to extend the accounting year ought to have been taken on or before 31.03.2011 or at best by 30.06.2011whereas in the present case it was taken on 11.08.2011 after the aforesaid three months had already expired.