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1965 (11) TMI 70

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..... being ordinary directors. The subject-matter of the charge in the case in Criminal Revision Petition No. 286 of 1964 was for failure to submit returns as required by sections 159 and 161 of the Indian Companies Act (shortly stated the Act), offence punishable under section 162 of the Act. In Criminal Revision Petition No. 287 of 1964, it was for failure to file the balance-sheet and profit and loss account as required by section 220 of the Act, offence punishable under section 220(3) of the Act. Learned District Magistrate on the evidence found all the accused guilty as charged. The company and the petitioner were each sentenced to pay a fine of Rs. 50 and accused Nos. 3 and 4 were sentenced each to pay Rs. 25. Out of the fine collected Rs .....

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..... he was in management, control and supervision of the affairs of the company. The definition of the term "manager" in the Act may be looked into. Section 2(24) says : " 'Manager' means an individual (not being the managing agent) who, subject to the superintendence, control and direction of the board of directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, and whether under a contract of service or not. " Section 2(26) defines who is a "managing director". It says : " 'Managing director' means a director who, by virtue of an agreement with the company or of a resolution passed by th .....

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..... n in accordance with whose directions or instructions the Board of directors of the company is accustomed to act. " The petitioner has, therefore, two capacities combined in him, one that of a director and the other that of a manager or an officer. His capacity as manager cannot be terminated by mere sending of two resignations but it must be duly accepted by the company and he should be relieved of his duties and responsibilities. In this connection, I will refer to one or two documents produced in this case. In exhibit P-4, the returns sent by the company on 11th February, 1960, the petitioner has been shown as the governing director and he has signed the return as the governing director. Exhibit P-13 is another very important documen .....

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