Non-Compliance of Section 3 (1) (iii) of the Companies, Act 1956 and its Consequences

Every Company incorporated as a Private Limited Company is required to comply with the provisions of the Section 3 (1) (iii) of the Companies Act, 1956, if any default is made wmcompliance of the said provisions, the company shall cease to be entitled to the privileges and exemptions conferred on private companies by or under the Companies Act, 1956 and this Act shall apply to the company as if it were not a private company :  

Provided that the Central Government, on being satisfied that the failure to comply with the conditions was accidental or due to inadvertence or to some other sufficient cause, or that on other grounds it is just and equitable to grant relief, may, on the application of the company or any other person interested and on such terms and conditions as seem to the Central Government just and expedient, order that the company be relieved from such consequences as aforesaid.