FILING OF GNL-3 WITH THE MCA IS MANDATORY FOR AUTHORISING AN OFFICIAL OR
AN ADVOCATE TO REPRESENT THE CASE IN A COURT . NON FILING MAY ATTRACT A FINE OF
RS 1 LAKH TO 5 LAKHS.
As per the Companies Act, 2013, a company can appoint an authorized
officer to represent the company in court. Here are the relevant provisions:
SECTION 233 OF COMPANIES ACT, 2013
1. Authorization: A company can authorize any person, including an
advocate, to represent the company in any legal proceedings.
2. Form of Authorization: The authorization must be in writing, and the
authorized person must be specifically empowered to represent the company.
Rule 8 of Companies (Authorised to Register) Rules, 2014
1. Form of Authorization: The authorization must be in Form No. GNL-3.
2. Content of Authorization: The authorization must contain the following
details:
- Name and address of the
authorized person
- Name and address of the
company
- Purpose of authorization
- Period of authorization
Provisions of Order XXIX of the Code of Civi
l Procedure, 1908
1. Authorization: A company can authorize any person to represent the
company in any legal proceedings.
2. Vakalatnama: The authorized person must file a vakalatnama (power of
attorney) in the court, authorizing them to represent the company.
KEY POINTS
1. Authorization is Mandatory: A company must authorize a person in
writing to represent the company in court.
2. Specific Empowerment: The authorized person must be specifically
empowered to represent the company.
3. Form of Authorization: The authorization must be in the prescribed
form (GNL-3) and contain the required details.
By following these provisions, a company can ensure that its authorized officer is properly empowered to represent the company in court.
Form GNL-3 is a crucial document for authorizing a person to represent a
company in court. Here are more details about Form GNL-3:
FORM GNL-3: AUTHORIZATION FOR REPRESENTATION OF COMPANY IN COURT
1. Purpose: Form GNL-3 is used to authorize a person to represent a
company in any court or tribunal.
2. Applicability: This form is applicable to all companies registered
under the Companies Act, 2013.
3. Content: The form must contain the following details:
- Name and address of the
authorized person
- Name and address of the
company
- Purpose of authorization
- Period of authorization
- Signature of the authorized
person and the company's authorized representative
4. Format: The form must be in the prescribed format, which can be
downloaded from the Ministry of Corporate Affairs (MCA) website.
5. Filing: The form must be filed with the Registrar of Companies (ROC)
within 30 days of authorization.
6. Fee: The filing fee for Form GNL-3 is ₹200.
IMPORTANT POINTS
1. Authorization is Mandatory: A company must authorize a person in
writing to represent the company in court.
2. Specific Empowerment: The authorized person must be specifically
empowered to represent the company.
3. Validity: The authorization is valid for the period specified in the
form, unless revoked earlier. If a
company fails to file Form GNL-3, it may face several implications. Here are
some of the consequences:
CONSEQUENCES OF NON-FILING FORM GNL-3
1. Non-Compliance with Companies Act: Failure to file Form GNL-3 is a
non-compliance with Section 233 of the Companies Act, 2013.
2. Penalty: The company may be liable to pay a penalty of ₹1 lakh to ₹5
lakh (Section 453 of Companies Act, 2013).
3. Interest on Penalty: In addition to the penalty, the company may also
be liable to pay interest on the penalty amount (Section 453 of Companies Act,
2013).
4. Disqualification of Directors: In case of repeated non-compliance, the
directors of the company may be disqualified from holding office for a period
of 5 years (Section 164 of Companies Act, 2013).
5. Impact on Company's Reputation: Non-compliance with regulatory
requirements can damage the company's reputation and credibility.
ADDITIONAL CONSEQUENCES
1. Difficulty in Representing Company in Court: If the company fails to
file Form GNL-3, it may face difficulties in representing itself in court.
2. Delays in Legal Proceedings: Non-filing of Form GNL-3 can lead to
delays in legal proceedings, which can have a negative impact on the company's
business.
3. Increased Risk of Litigation: Failure to comply with regulatory
requirements can increase the risk of litigation and disputes.
BEST PRACTICES
1. File Form GNL-3 on Time: Ensure that Form GNL-3 is filed within 30
days of authorization.
2. Maintain Accurate Records: Maintain accurate records of authorization
and filing of Form GNL-3.er.
ADVOCATE PRESENCE ON BEHALF OF A COMPANY BEFORE A COURT
In some cases where Judge asked if the company has authorised the
advocate to represent.
In such cases ,GNL-3 must be filed for all authorities given either to
sign agreements or to represent.
R V Seckar ,FCS
79047 19295
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