9911796707
TMI Blog1984 (7) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... ioners before respondent No. 2, Chief Metropolitan Magistrate, Kanpur, alleging that section 220 of the Act places a statutory obligation on the petitioners to file with the Registrar of Companies the balance-sheet and the profit and loss account in the prescribed form duly placed in the annual general meeting of the company, within thirty days of the annual general meeting and, in case no annual general meeting is held, within thirty days of the due date of the annual general meeting. The petitioners were thus required to file, with the Registrar of Companies, the balance-sheet and the profit and loss account of petitioner No. 1 for the period ending March 31, 1979, latest by October 30, 1979. As the petitioners failed to file the said bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e profit and loss account within time. They also contend that in case the court relieves the petitioners of the above mentioned liability, the proceedings for their prosecution which are pending before the Chief Metropolitan Magistrate, Kanpur, will also fall and will have to be quashed. Section 633 of the Act invoked by the petitioners runs thus : "633(1). If in any proceeding for negligence, default, breach of duty, misfeasance or breach of trust against an officer of a company, it appears to the court hearing the case that he is or may be liable in respect of the negligence, default, breach of duty, misfeasance or breach of trust, but that he has acted honestly and reasonably, and that having regard to all the circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egligence, default, breach of duty, misfeasance or breach of trust. The object underlying section 633 of the Act obviously is to avoid hardship to officers of the company in deserving cases and to relieve them of their liability in cases where they have been technically guilty if they are able to convince the court that they had been acting honestly and reasonably and that having regard to the circumstances of the case, they, in all fairness, ought to be excused from the charge or charges made against them. The section enables the concerned officer to apply to the court for making an order relieving him of the liability incurred by him either after the proceedings have commenced against him or by way of preventive action before commencement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the criminal proceedings have already been initiated against petitioners Nos. 2 to 7 and are pending before the Chief Metropolitan Magistrate, Kanpur, it is not open to this court to grant them any relief under section 633(2) of the Act. During the course of his arguments, learned counsel appearing for the petitioners cited the case, Tolaram Jalan, In re [1959] 29 Comp. Cas. 34; AIR 1959 Bom. 245, wherein it has been observed as follows (headnote of AIR); "Whereas sub-section (1) of section 633 refers to proceedings already commenced, sub-section (2) contemplates a claim which is anticipated as one which might be made in future. Under sub-section (1), the important words are ' the court hearing the case ', which obviously mean the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1977, and ruled that as per unamended section there was no obligation on the company or its officers to file with the Registrar, the balance-sheet and the profit and loss account of the company till an annual general meeting was held. Since, in that case, the annual general meeting had not been held, no prosecution for not filing the profit and loss account was maintainable. There is nothing in that decision which runs counter to the view which is being taken by me in the present case. In the view which I am taking, it is not necessary for me to decide as to whether petitioners Nos. 2 to 7 have made out any case for being relieved against the default for which they are being prosecuted. It will be open to them to raise their claim in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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