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Appeal against acquittal under section 162 of the Companies Act, 1956 for non-compliance with section 159 - Whether respondent-accused was in default for non-compliance. Detailed Analysis: The case involved an appeal by the Registrar of Companies against the judgment of the Second Additional Sessions Judge, Cuttack, acquitting the accused-respondent after being convicted under section 162 of the Companies Act, 1956. The appellant filed a complaint against a company and its directors, including the respondent, for failing to file the annual return with the Registrar of Companies by the prescribed deadline. The trial court convicted the respondent and imposed a fine, which was later overturned by the Second Additional Sessions Judge, leading to this appeal. During the hearing, the appellant did not appear, and the only point of consideration was whether the acquittal of the respondent should be interfered with. Section 162 of the Companies Act imposes penalties for non-compliance with certain provisions, including section 159. The trial court found the respondent to be an officer of the company at the time of the offense. However, the Second Additional Sessions Judge acquitted the respondent, citing lack of evidence or pleading showing that the respondent was in default for non-compliance with section 159. The judgment highlighted a precedent set by the Calcutta High Court, emphasizing that not all officers of a company are automatically liable under section 162, but only those who are in default. Since there was no specific averment or evidence demonstrating the respondent's default regarding non-compliance with section 159, the acquittal was upheld. The judgment concluded that as per the provisions of section 162, only the officer of the company who is in default can be held liable, and since the respondent was not proven to be in default, the appeal was dismissed. In summary, the judgment focused on the interpretation of section 162 of the Companies Act and the requirement to establish the default of the officer of the company for liability. The lack of specific averments or evidence showing the respondent's default led to the dismissal of the appeal against the acquittal.
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