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Issues:
- Impleading the appellant as an accused in a Company Application under section 454(5) and (5A) of the Companies Act, 1956. - Power of the Company Court to array the appellant as an accused after cognizance against other accused had been taken. - Applicability of Order 1 Rule 10, section 151 of the Code of Civil Procedure, and Rule 9 of the Companies (Court) Rules, 1959. - Interpretation of section 454(5) and (5A) of the Companies Act, 1956. - Application of section 319 of the Code of Criminal Procedure in impleading additional accused. - Definition of 'evidence' under section 319 and its application in the case. Analysis: 1. The appeal was filed against the order of the Company Court impleading the appellant as an accused in a Company Application under section 454(5) and (5A) of the Companies Act, 1956. The Director of the Company sought an extension of time for filing a statement of affairs after winding up orders were passed. The Official Liquidator filed a company application for prosecution of the Directors under section 454(5) and (5A) for not filing the statement of affairs. The Company Court allowed the application to implead the appellant, leading to the appeal. 2. The appellant argued that the Company Court lacked the power to array the appellant as an accused after cognizance against other accused had been taken. The counsel contended that provisions like Order 1 Rule 10, section 151 of the Code of Civil Procedure, and Rule 9 of the Companies (Court) Rules, 1959 were not applicable once cognizance was taken under section 454(5) and (5A) of the Companies Act, 1956. 3. The interpretation of section 454(5) and (5A) of the Companies Act, 1956 was crucial. The appellant argued that once cognizance was taken under these sections, the Company Court transformed into a Criminal Court under the Code of Criminal Procedure. Therefore, any reference to civil procedure rules would be irrelevant, and the proceedings should follow criminal procedure. 4. The application of section 319 of the Code of Criminal Procedure was discussed regarding impleading additional accused. Section 319 allows the Court to proceed against a person not initially accused if evidence suggests their involvement in the offense. The Court highlighted the necessity of evidence to support such impleadment. 5. The definition of 'evidence' under section 319 was analyzed to determine its application in the case. The Court emphasized that evidence must be presented during the trial, and material collected before trial cannot be considered as evidence. Case law and judgments were referenced to establish the requirement of evidence for impleading additional accused, ensuring a fair and just legal process.
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