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Issues: Jurisdiction of the Court in a case involving false statements in a balance-sheet under Section 282 of the Indian Companies Act.
Detailed Analysis: The judgment pertains to a reference made by the Sessions Judge of Dacca recommending the quashing of proceedings against two petitioners, who were accused of making false statements in the balance-sheet of a company under Section 282 of the Indian Companies Act. The complaint was filed by a shareholder of the company, alleging that the accused had made false statements in the balance-sheet for the year 1945. The accused petitioned that the balance-sheet was signed in Calcutta, hence the Narayanganj Court had no jurisdiction to entertain the complaint. The Sessions Judge recommended quashing the proceedings based on the jurisdictional issue. In the argument before the High Court, it was contended that the balance-sheet was signed in Calcutta on November 30, 1946, and therefore, the directors could only be tried for a breach of Section 282 in Calcutta. The defense emphasized a strict construction of the section, highlighting that it only mentions "wilfully making a statement false in any material particular" without specifying the place of publication. However, the Court noted the absence of evidence to support the claim that the meeting where the balance-sheet was signed took place in Calcutta. The Court also highlighted the statutory requirement for companies to send copies of financial documents to members, considering the registered address of the company and the location of the mills in Narayanganj Sub-Division. Ultimately, the High Court rejected the reference and remanded the case to the lower Court for disposal according to law. The judgment underscores the importance of jurisdictional considerations in cases involving alleged offenses under the Indian Companies Act and emphasizes the need for evidence to support claims of lack of jurisdiction. The decision provides a comprehensive analysis of the jurisdictional issue and clarifies the Court's stance on the matter, ensuring that legal proceedings are conducted in accordance with the law.
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