2002 (4) TMI 823

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..... e petitioners herein who are A-1 to A-3 in S.T.C. No. 21 of 1998 on the file of the Court of the Special Judge for Economic Offences, Hyderabad, seek quashing of the said proceedings on the ground that launching of prosecution against the petitioners herein is an abuse of the process of the Court. The case, according to the complaint filed by the Registrar of Companies, is that the first petitio .....

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..... ted 23-9-1996 and (2) Exim Bank Ltd., dated 18-11-1996, addressed to the first petitioner-company wherein the said financial institutions have categorically requested the company not to declare or pay the dividends unless the overdues under the loan are liquidated. Learned counsel for the petitioners therefore submits that the petitioners could not pay the dividends in time in view of the said let .....

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..... n, it cannot be said that the company has voluntarily failed to pay the dividend within the stipulated period of 42 days and the said non-payment is only in view of the categorical request of the financial institutions SICOM Ltd. and EXIM-bank. Therefore, I am in agreement with the contention raised by learned counsel for the petitioner that the protection as envisaged under clause ( e ) of provis .....

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