(a) Functions and Duties of National Financial Reporting Authority
[NFRA]
**Section 132**(1A) of the Companies Act, 2013, provides that National
Financial Reporting Authority shall perform its functions through such
divisions as may be prescribed.
Further **Section 132(2)** read with rule 4, 6 to 9 of the National Financial
Reporting Authority Rules, 2018 lays down the functions and duties that
NFRA shall perform, namely:
The Authority shall protect the public interest and the interests of
investors, creditors and others associated with the companies or bodies
corporate by establishing high quality standards of accounting and
auditing and exercising effective oversight of accounting functions
performed by the companies and bodies corporate and auditing functions
performed by auditors.
Without prejudice to the generality, the Authority in particular shall:
(a) Maintain details of particulars of auditors appointed in the companies
and bodies corporate governed by NFRA;
(b) Recommend accounting standards and auditing standards for
approval by the Central Government;
(c) Monitor and enforce compliance with accounting standards and
auditing standards;
(d) Oversee the quality of service of the professions associated with
ensuring compliance with such standards and suggest measures for
improvement in the quality of service;
(e) Promote awareness in relation to the compliance of accounting
standards and auditing standards;
(f) Co-operate
with
national
and
international
organisations
of
independent audit regulators in establishing and overseeing
adherence to accounting standards and auditing standards; and
(g) Perform such other functions and duties as may be necessary or
incidental to the aforesaid functions and duties.
(b) Distinction Between LLP and Company
Basis
LLP
Company
1.
Regulating Act
The LLP Act, 2008
The Companies Act,
2013
2.
Members/ Partners The
persons
who
contribute to LLP are
known as partners of
the LLP
The
persons
who
invest the money in
the
shares
of
the
company are known
as members of the
company
3.
Name
Name of the LLP to
contain
the
word
“Limited
Liability
Partnership” or “LLP”
as suffix
Name of the public
company to contain
the word “Limited”
and
Pvt.
Co.
to
contain
the
word
“Private Limited” as
suffix
4.
No. of members/
partners
Minimum
-
2
members
Maximum - No such
limit
on
the
members in the Act.
The members of the
LLP
can
be
individuals/or body
corporate
through
the nominees
Private company:
Minimum
-
2
members
Maximum
200
members
Public company:
Minimum
-
7
members
Maximum - No such
limit on the members.
Members
can
be
organizations, trusts,
another
business
form or individuals
5.
Liability
of
members/ partners
Liability
of
each
partner is limited to
the extent of agreed
Liability of a member
is
limited
to
the
amount
unpaid
on
CORPORATE AND OTHER LAWS
contribution except
in case of intention
is fraud
the shares held by
them
6.
Management
The business of the
firm is managed by
the
partners
including
the
designated partners
authorized
in
the
agreement
The affairs of the
company
are
managed by board of
directors elected by
the shareholders
7.
Minimum number
of
directors/
designated
partners
Minimum
2
designated partners
Pvt. Co. – 2 directors
Public
co.
–
3
directors
(c) As per **Section 17** of the General Clauses Act, 1897, in any Central Act or
Regulation made after the commencement of this Act, it shall be
sufficient, for the purpose of indicating the application of a law to every
person or number of persons for the time being executing the functions
of an office, to mention the official title of the officer at present executing
the functions, or that of the officer by whom the functions are commonly
executed.
As per **Section 18** of the General Clauses Act, 1897, in any Central Act or
Regulation made after the commencement of this Act, it shall be
sufficient, for the purpose of indicating the relation of a law to the
successors of any functionaries or of corporations having perpetual
succession, to express its relation to the functionaries or corporations.
In other words, the General Clauses Act, 1897, provides general
definitions and rules for interpreting laws, particularly Central Acts and
Regulations. **Section 18** specifically deals with the continuity of laws when
a functionary is replaced. It clarifies that when a law refers to a specific
official, it's not limited to that individual but extends to their successors.
This means that if a law grants power to a particular officer, that power
also extends to their successor, unless explicitly stated otherwise. A
successor in office can generally continue a case under the General
Clauses Act, and this is also related to the doctrine of merger.
As per **Section 18**, the power to appoint includes the power to appoint
ex-officio, meaning the authority is attached to the office, not the
individual. Further, under section 17, official acts continue to remain valid
despite changes in officeholders.
As per the facts of the question and a combined reading of Sections 17
and 18 of the General Clauses Act, 1897, Mr. G, in his capacity as the
current Assistant Commissioner, is legally competent to order the
demolition of the construction. This is because the original order was
issued by Mr. S, the former Assistant Commissioner, in his official
capacity, and the authority to act continues with the office, not the
individual.
Hence, the claim of Dream Builders Limited is not valid.