IL&FS: Third time's the charm as govt succeeds in taking over private firm

The Ministry of Corporate Affairs seems to have taken past lessons to heart while building a water-tight case in the IL&FS issue

This is the first time -- in three recent attempts -- that the government has been able to successfully invoke the Companies Act, 2013, for the takeover of the board of a private company. Its two previous attempts in different cases did not pass muster with the courts.  

Section 241 of the Companies Act, 2013, corresponds to Section 397 under the erstwhile Companies Act, 1956. The section stipulates the circumstances in which any member of a company or the central government could apply to the National Company Law Tribunal to seek certain reliefs, in cases of oppression and mismanagement.