9911796707
TMI Blog1986 (8) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... conviction. A prosecution was launched by the Registrar of Companies, Tamil Nadu, for the violation of the provisions of section 295 of the Companies Act. Accused No. 1 is a private limited company. Accused Nos. 2 to 4 are the directors of the company. Accused No. 5 is the beneficiary of the loan. She happens to be the wife of accused No. 2, the managing director. The case of the prosecution i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the advance paid to accused No. 5 amounted to a loan and accordingly convicted the accused for an offence punishable under section 295(4) of the Act and sentenced them to pay a fine of Rs. 25 each by its judgment dated July 19, 1983. As against that judgment, all the accused have preferred this criminal revision petition. The only point urged before me is that the advance given to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount to a salary advance. In other words, the court will have, in such cases, to find out whether the alleged salary advance is a genuine salary advance or a loan disguised as salary advance. For that purpose, it would be necessary to consider whether the beneficiary is a bona fide employee, whether the advance falls within the general scheme of advances given by the company to other employees, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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