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TMI Blog1956 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... la as its directors. 3. The Orissa Jute and Cotton Mills Limited was incorporated under the Indian Companies Act on 27th November, 1946, and a certificate for commencement of business was issued in its favour on 19th August, 1949. The registered office of the company which was originally situated at Bakharbad was shifted to 14, Cantonment Road, Cuttack, and it was duly intimated to the Registrar, Joint Stock Companies, on 4th October, 1949. Sri Madanlal was in charge of the management of the assets of the company, but the accountant of the company who was in charge of all the accounts died in November, 1952, after a protracted illness and consequently the company could not hold its annual general meetings in the years 1951, 1952 and 195 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the application. The petitioners could not comply with the provisions of the Act as stated in the affidavit filed by them on account of the death of the accountant who was in charge of these accounts and another accountant could not be appointed in time in his place. All these things which were hot done in time were subsequently complied with, and I am, therefore, satisfied that the petitioners are entitled to be relieved from their liabilities under the Act which were due to their negligence, the negligence being only on account of certain unavoidable circumstances. But the question still remains whether this relief can be availed of by the petitioners. in the prosecution against them before the criminal court. Mr. R.K. Ghosh, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore which proceedings against that person for negligence, default, breach of duty, misfeasance or breach of trust had been brought." Section 281 of the Act of 1913 is identical with the above and this applies to the case. Clause (2) of this section clearly empowers the court to relieve the petitioners against any apprehended claim for not complying with the provisions complained of; but clause (1) empowers only the court before .whom the proceeding for negligence, default, breach of duty is complained of and is pending, and the power is strictly Confined to that court. In this case, unfortunately the petitioners came to this court not even after the negligence was found out by them to have been committed, but after the institution of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom future or apprehended claims in respect of what was a purely technical defect; the summary proceedings already commenced being expressly excepted from that order." Following this decision and the wording of section 281, I relieve the petitioners from any apprehended liability as I am satisfied that they could not comply with the provisions of law on account of the unavoidable circumstances due to the death of the accountant but I cannot relieve them from liability of pending prosecution. And this order shall not in any way prejudice the proceedings which are pending before the Magistrate and the Magistrate is at perfect liberty to come to his own conclusion irrespective of this order from the facts and the evidence in the case before hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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