Section 378ZP: Strike off name of Producer Company
This section is for striking off the name of a Producer Company from the register under certain conditions.
The section, clause by clause
What the section says
In plain terms
(1)Where a Producer Company fails to commence business within one year of its registration or ceases to transact business with the Members or if the Registrar is satisfied, after making such inquiry as he thinks fit, that the Producer Company is no longer carrying on any of its objects specified in section 378B, he shall make an order striking off the name of the Producer Company, which shall thereupon cease to exist forthwith:
The Registrar can strike off a Producer Company's name if it fails to start business within one year of registration, stops transacting business with members, or no longer pursues its specified objects, after giving notice and a chance to respond.
provisoProvided that no such order cancelling the registration as aforesaid shall be passed until a notice to show cause has been given by the Registrar to the Producer Company with a copy to all its directors on the proposed action and reasonable opportunity to represent its case has been given.
(2)Where the Registrar has reasonable cause to believe that a Producer Company is not maintaining any of the mutual assistance principles specified, he shall strike its name off the register in accordance with the provisions contained in section 248.
If the Registrar believes a Producer Company is not following mutual assistance principles, its name can be struck off the register.
(3)Any Member of a Producer Company, who is aggrieved by an order made under sub-section (1), may appeal to the Tribunal within sixty days of the order.
A Member of a Producer Company can appeal to the Tribunal within sixty days if they are aggrieved by an order to strike off the company's name.
(4)Where an appeal is filed under sub-section (3), the order of striking off the name shall not take effect until the appeal is disposed of.
When an appeal is filed, the order to strike off the name will not take effect until the appeal is disposed of.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
This section refers to
Search the whole Act, or ask it a question, in the interactive browser.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.