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Issues:
1. Quashing of proceedings under section 482 of the Criminal Procedure Code for non-compliance with Companies Act provisions. 2. Allegations against the petitioner as a director of a company for default in filing balance-sheet and profit and loss account. 3. Challenge to the proceedings on grounds of lack of material in the complaint and inability to prepare accounts due to uncontrollable circumstances. 4. Interpretation of section 220(3) of the Companies Act regarding liability of officers in default. 5. Comparison with previous case law on liability of directors and officers in default. 6. Consideration of evidence and defense of circumstances beyond control in determining the maintainability of the complaint. Analysis: The judgment by Jyotirindra Nath Hore, J. pertains to two criminal revision cases concerning the quashing of proceedings under section 482 of the Criminal Procedure Code related to non-compliance with the Companies Act provisions. The complaints alleged that the petitioner, a director of a company, failed to file the required balance-sheet and profit and loss account, leading to liability under section 220(3) of the Companies Act. The key contention raised was the lack of material in the complaint to establish the petitioner's role in the default and the claim of circumstances beyond control preventing the preparation of accounts. The court analyzed the provisions of section 220(1) and (3) of the Companies Act, emphasizing the liability of both the company and its officers in default for non-compliance with filing requirements. It was noted that the definition of "officer in default" includes any officer knowingly guilty of default or authorizing such default. The court considered the prima facie case against the petitioner based on the allegations in the complaint, highlighting the director's responsibility in ensuring compliance. Regarding the challenge based on a previous case law, the court distinguished the present case by noting the specific allegations of knowing guilt in the complaint. It referenced the requirement for notice to directors and the rebuttable presumption of all directors being aware of defaults. The court accepted that notice was served on the petitioner, and the lack of response strengthened the case against the petitioner. The defense of circumstances beyond control raised by the petitioner was deemed disputable and subject to evidence during trial. The court emphasized that the validity of this defense could only be determined after considering the evidence presented. Ultimately, the court dismissed the revisional applications, ruling that the complaints were maintainable, and ordered the lower court records to be sent down. In conclusion, the judgment provides a detailed analysis of the issues raised, interpreting the relevant legal provisions and case law to determine the liability of the petitioner as a director under the Companies Act. The decision underscores the importance of evidence in establishing guilt or innocence and highlights the need for a trial to fully assess the validity of defenses raised.
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