9911796707
|
Home
Issues:
Violation of section 205A of the Companies Act, 1958; Barred by limitation under section 468 of the Code of Criminal Procedure, 1957. Violation of section 205A of the Companies Act, 1958: The petitioners sought to quash proceedings under section 482 of the Code of Criminal Procedure, 1973, alleging violation of section 205A of the Companies Act, 1958. The complaint alleged that the company failed to transfer unpaid dividends to a special account within the stipulated time. However, the petitioners argued that they had dispatched the dividend warrants and deposited the dividend amount into a bank account within the required period. The court analyzed the provisions of section 205A(1) and determined that once the dividend warrants are posted to shareholders, the dividend is deemed paid. The court cited precedents to support the argument that failure to post the warrants within the prescribed period, not non-receipt by shareholders, constitutes an offense. It was concluded that unless the company had knowledge of non-encashment, penalization for non-transfer to the unpaid dividend account would not apply. Barred by limitation under section 468 of the Code of Criminal Procedure, 1957: The court examined the limitation period under section 468 of the Code of Criminal Procedure, 1957, which mandates a six-month period for offenses punishable with a fine only. The complaint in this case was filed beyond the six-month period from the date of inspection, rendering it barred by limitation. The court emphasized that once the limitation period starts running, it cannot be stopped. Consequently, the court utilized its inherent powers to quash the proceedings, as the complaint did not constitute an offense under section 205A(8) and was time-barred. The petition was allowed, and the proceedings were quashed against the petitioners in the Special Judge for Economic Offenses, Andhra Pradesh, Hyderabad. This judgment highlights the importance of compliance with statutory provisions regarding dividend payments and the significance of adhering to limitation periods in criminal proceedings. The court's detailed analysis of the legal provisions and relevant case law demonstrates a thorough examination of the issues at hand, resulting in a decision based on legal principles and precedents.
|
