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Issues involved: Prosecutions u/s Companies Act, 1956 for failure to file annual returns and balance sheets; Invocation of powers u/s 482 CrPC to quash proceedings.
Summary: The petitioners, accused in six prosecutions under the Companies Act, 1956 for failure to file annual returns and balance sheets, sought quashing of proceedings u/s 482 CrPC. They argued that they attempted to avail of the 'Simplified Exit Scheme, 2005' but were unsuccessful. The first contention was that the complaint filed before the scheme's deadline was legally unsustainable. However, the court held that the scheme was intended for defunct companies who successfully availed it, which the petitioners did not. Thus, the complaint initiation was deemed valid. The second contention was regarding payment under section 611(2) of the Act, which the petitioners claimed exceeded the maximum payable amount. The court clarified that such payments do not absolve liability for prosecution under other sections of the Act. The court dismissed both contentions and refused to quash the prosecutions based on these grounds. In conclusion, the court dismissed the Criminal Miscellaneous petitions, stating that the prosecutions could not be quashed based on the reasons presented by the petitioners.
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