Being able to grant the Registrar the authority to petition the Tribunal for the winding up of a firm is legal and within the bounds of the law because "Registrar" and "a person authorised by Central Government" are two different organisations. Devas Employees Mauritius Private Ltd. v. Union of India & Ors; [WRIT PETITION No.6191 OF 2021 (GM-RES)], was decided by a single-judge bench headed by Justice Dinesh Kumar. The case involved a challenge to company winding-up proceedings.
In the instant case titled Devas Employees Mauritius (P.) Ltd. v. Union of India, the issue raised for clarification before the Karnataka High Court was:
Whether Section 272 (1)(e) is ultra vires the Constitution of India?
With regard to this issue, according to the High Court, Section 272 (1)(e) does not violate the Indian Constitution. It is not necessary to read down Section 272 because the Registrar and "a person licenced by Central Government" belong to separate categories (3).
The Court noted that an award had been made in favour of company "A" in arbitration proceedings between that firm and company "D," of which the petitioner was a stakeholder. There was no flaw in the Central Government's order, which gave the Chairman & Managing Director of "A" permission to file a petition to dissolve "D".
The Court categorically stated that,
“One of the most profound tenets of Constitutionalism is presumption of Constitutionality assigned to each legislation enacted. Indubitably, Parliament has competence. The sanction accorded by the Central Government does not meet petitioner with any Civil consequence. Devas has not challenged the sanction order. Petitioner has failed to demonstrate infringement of any rights enshrined in Part-III of Constitution of India. 52. Having held that 'Registrar ' and ‘a person authorized by the Central Government’ fall into different categories, it does not warrant reading down Section 272(3) of the Companies Act. 53. Accordingly, both points for consideration are held in the negative. 54. Resultantly, this writ petition must fail and it is accordingly dismissed".