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TMI Blog2003 (4) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... f the tea estate was transferred to a new company namely Lakshmi Township Limited which was incorporated for the purpose of building a satellite township in joint venture with the Government of West Bengal. By virtue of such memorandum of understanding a portion of the tea estate was converted in a vacant land for the purpose of building such township. Such decision of the company as well as the Government of West Bengal gave rise to an industrial dispute and labour unrest. There had been intensive agitations by the workers of the said estate causing casualty to one of the workmen in a police firing. The situation was so grave that the directors and the other executives of the company were prevented from entering into the said tea estate as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid meeting could not be held despite bona fide attempts on the part of the directors of the company including the applicant. Hence, the applicant should be relieved of such responsibility under section 633 of the Companies Act, 1956. 5. In support of his contention, Mr. Basak relied on the following decisions : ( i ) East India Hotels Ltd., In re [1980] 50 Comp. Cas. 381 (Cal.); ( ii ) G.M. Mohan v. Registrar of Companies [1984] 56 Comp. Cas. 276 (Kar.); ( iii ) P. Vaman Rao v. Secretary to Government [1998] 93 Comp. Cas. 486 (AP); ( iv ) Filmistan (P.) Ltd., In re [1959] 29 Comp. Cas. 34 (Bom.); ( v ) M. Meyyappan v. Registrar of Companies [2002] 112 Comp. Cas. 450 * (Mad.); ( vi ) S.L. Kapur v. Regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India (P.) Ltd. s case ( supra ) : In the said case the company did not hold any annual general meeting for six years. Initially on an earlier application for the default committed by the company for two years for non-filing of balance-sheet, profit and loss account as well as for not holding the annual general meeting this Court condoned the delay on an undertaking given by the directors that they would hold the annual general meeting and comply with the statutory requirements within six months. Such undertaking was violated by the directors. This Court on a second application being made condoned the delay on a similar undertaking. The directors violated the undertaking for the second time. Similarly on a third application the delay w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pies thereof to the members was due to unavoidable reasons and caused by circumstances beyond their control. Hence, the default should be excused under section 633(2). ( iv ) Sanatan Ganguly s case ( supra ) : In a criminal revision proceeding Manoj Kumar Mukherjee, J. was pleased to hold that the power of the Court under section 633(1) was a discretionary one and discretion had to be exercised when the Court was satisfied that the defaulting officer had acted honestly and reasonably and having regard to the facts and circumstances of the case he ought fairly to be excused. ( v ) East India Hotels Ltd. s case ( supra ) : In this case there had been a violation of section 58A. The company although belatedly complied with the req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plained the delay in submitting the cost audit report and as such the petitioner was excused for such default. Considering the aforesaid cases cited by the parties my understanding of the section being section 633(2) is as follows : ( i )If there is any statutory default on the part of an individual while acting on behalf of the company the Court is empowered to consider the application for excusing the said person from such responsibility and/or liability. ( ii )While considering the application made under section 633(2), the Court will have to come to a conclusion that the applicant had acted honestly and fairly and even after his honest and fair act the default was committed for some unavoidable circumstances. ( iii )Non-complian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipt granted by the Registrar of Companies that all the statutory requirements were complied with by the company and its directors on February 19, 2003, by filing necessary annual report, balance-sheet and other related documents required in law with the Registrar of Companies on the said date. 9. In the case of Coal Marketing of India (P.) Ltd. ( supra ), the Court dismissed the application on the fourth attempt as the Court was not satisfied with the explanation given by the directors of the said company. Moreover, in the said case there had been continuous defaults despite repeated undertakings given before this Court. Considering such facts and circumstances of the case, P.B. Mukherjee, J. dismissed the application. I do not find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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