9911796707
TMI Blog1978 (6) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... Magistrate, Ernakulam. He pleaded guilty and the court pronounced judgment in the case on June 29, 1976, convicting and sentencing him to pay a fine and also directing him to file with the Registrar the annual return within a period of two months thereof. Since he failed to file the return, the Registrar by his letter dated October 6, 1976, marked exhibit A, reminded him of the court's order to file the return within two months and intimated him that the Registrar will be constrained to invoke the penal provisions under section 614A(2) of the Act. On receiving that letter the applicant has come forward with this application for an order to relieve him from the liability to file the documents called for in the said letter, and from being pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that he has acted honestly and reasonably all along and that having regard to all the circumstances connected with his appointment the High Court may be pleased to relieve him from the liability in respect of the proposed action of the respondent referred to earlier. In answer to this the Registrar has filed a counter-affidavit. He contended that after the petitioner was made a director, the company had held its 10th annual general meeting on September 27, 1971, at which the balance-sheet and profit and loss account as at March 31, 1971, was placed and adopted. The company filed the said balance-sheet and profit and loss account with the Registrar and one of the signatories to the said document was shown as the applicant. Therefore, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions used in section 633(2) of the Act and there is no case made out to show that the petitioner acted reasonably and honestly. The petitioner has filed a rejoinder wherein he repeated his earlier stand that he had resigned his directorship from March 19, 1976, and he had hoped that the managing director and other directors who are also co-accused and were in possession of the entire records of the company will file the overdue returns. He did not intimate the fact of his resignation to the Magistrate's court only because that was not relevant in that case inasmuch as it relates to a period before his resignation. He further maintained that the only forum where he can get relief is an application under section 633(2) in the nature of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to file with or deliver to the Registrar any return, account or document for which default he was convicted and sentenced. This direction by the court is made after he is found guilty and sentenced. This will not come under the various acts or omissions referred to under section 633(1). For failure to comply with the direction of the Magistrate the concerned officer can be further proceeded against under section 614A(2). Can the Magistrate at that stage relieve him from the liability to comply with the direction ? I think he cannot. Section 633(1) does not comprehend that situation. If he cannot do it the High Court under section 633(2) cannot exercise such a power in an application filed in anticipation of a proceeding for failure to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (2) of section 633 of the Act. Further, there is only the applicant's evidence regarding the circumstances under which he became a shareholder and a director. It may be that Mr. M.G. Menon was the managing director for life. It may be that the petitioner was and is not in a position to file the necessary returns, but he should have mentioned all these in the proceedings taken against him in C.C. No. 249 of 1975. He did not state any of these things before the Magistrate in the proceedings taken against him. He also did not take any steps to get the direction contained in the order passed by the Magistrate by taking appropriate proceedings. When he is threatened again by the Registrar that he will be proceeded against under section 614A( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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