The Articles of Association of Blue Limited provided that documents upon the company may be served only through email. Mr. Karan sent document to…

CA Intermediate · Corporate and Other Laws · RTP · September 2026
The Articles of Association of Blue Limited provided that documents upon the company may be served only through email. Mr. Karan sent document to the company by registered post. The company did not accept the document on the ground that sending documents to the company by post was in violation of the Articles. As a result, Mr. Karan suffered loss. Decide the validity of arguments of the company and claim of Mr. Karan for damages in the light of provisions of the Companies, Act, 2013.

Suggested Answer and Working Notes:

Section 20 of the Companies Act, 2013, provides the mode in which documents may be served on the company, on the members and also on the Registrars. Serving of document to company: A document may be served on a company or an officer thereof by sending it to the company or the officer at the registered office of the company by registered post, speed post, courier service, leaving it at its registered office, or means of such electronic or other mode as may be prescribed. However, where securities are held with a depository, the records of the beneficial ownership may be served by such depository on the company by means of electronic or other mode. In the given instance, even though the Articles of Blue Limited has specifically provided that documents may be served upon the company only through email; this is invalid on the ground that the provisions of the Articles cannot be inconsistent with the provisions of the Companies Act, 2013. Therefore, the argument of the company is not valid. The company was bound to accept the document sent by Mr. Karan by registered post. Since, the company did not accept the documents, Mr. Karan may seek appropriate legal remedies and may claim damages if he suffered loss due to company's wrongful refusal.

Topics: Incorporation of Company and Matters Incidental Thereto

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