2011 (12) TMI 753 - HC - Companies Law

Summary

Issues involved: Petition for quashing investigation notices and summons u/s 235 of Companies Act, 1956; Application for stay of operation of summons dated 1.12.2011.

Judgment Details:

Petition for Quashing Investigation Notices and Summons:
The petitioner filed a petition seeking to quash notices and summons issued under Section 235 of the Companies Act, 1956. The petitioner contended that no order for investigation could have been passed without a written order from the Registrar of Companies u/s 234(1) of the Act. The respondents opposed the petition, asserting their authority to conduct investigations under the Act. The Court directed the respondents to file a counter affidavit within four weeks, with a rejoinder allowed before the next hearing on 21st February, 2012.

Application for Stay of Operation of Summons:
Another application was filed by the petitioner requesting a stay on the operation of the summons dated 1.12.2011. The petitioner claimed to have furnished the requested documents to the respondents, which was disputed by the respondents. The respondents highlighted that certain documents were still pending, affecting the investigative process. The petitioner agreed to provide most documents except for specific ones. The Court granted four weeks to the respondents to file a reply and directed the petitioner to furnish specified documents within two weeks to avoid coercive action under Section 243 of the Act until the next hearing date.

Conclusion:
The Court allowed the exemption in one application and provided directions for document submission in the other, ensuring a fair process in the investigation under the Companies Act, 1956.