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TMI Blog2005 (4) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... anjagutta Police Station, Hyderabad, holding that they have no jurisdiction and power to entertain the complaint lodged by the fourth respondent and to proceed with the investigation. 3. It is the case of the petitioner that he is the managing director of M/s. S.S. Organics Limited, a company, which is now registered as sick industrial company before the Board for Industrial and Financial Reconstruction (BIFR). The fourth respondent is one of the shareholders of the company and brother-in-law of one B. Subba Reddy who is the director of the company. The company became sick and the petitioner took responsibility and improved its financial position. Though the company has been declared as sick by the BIFR, during the year 1997, the rehabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustrial Companies (Special Provisions) Act, 1985 (for short "the Act"). Under section 26 of the Act, the jurisdiction of the civil Court is taken away. If in the course of scrutiny or implementation of the scheme, if any person who has taken part in the management of the sick industrial company has misapplied or became liable or accountable for money or property of the sick industrial company or has been guilty or any misfeasance, malfeasance or non-feasance or breach of trust, the Board may by an order direct him to repay or restore the money or property as contemplated under section 24 of the said Act. Under section 32 of the Act, the provisions of the Act shall have overriding effect over other laws except the provisions of the Foreign E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourth respondent and managing director of the said company, the shares were kept with him. Though the fourth respondent requested to return the shares, they have not been returned and they were in the custody of the petitioner alone. The fourth respondent came to know in the second week of January 2005, that the petitioner in collusion with other directors transferred the shares of the fourth respondent, which were kept in the custody of the petitioner. It is stated that the shares of the fourth respondent were transferred by forging his signatures. It is stated that the signatures of the fourth respondent on the share applications, share certificates were forged and got transferred and sold in the names of N. Gangi Reddy, R. Venu Reddy and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to make an enquiry and take remedial measures as contemplated under section 18 of the Act. Under section 19 of the Act, a company can be rehabilitated by giving financial assistance. If there is no possibility of rehabilitation, proceedings can also be taken for winding up. But, during the pendency of the enquiry under section 16 or pendency of the scheme mentioned under section 17 or during the pendency of the appeal under section 25, no proceedings for winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of receiver in respect thereof and no suit for the recovery of money or for the enforcement of any security against the industrial compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 of the Act provides that whoever violates the provisions of the Act, scheme or any order, they are liable to be punished with simple imprisonment, which may not exceed three years and shall also be liable to fine and the Courts are empowered to take cognizance on a complaint in writing by the Secretary or other officer of the Board or the Appellate Authority. Under section 34 of the Act, where any offence, punishable under the Act has been committed by a company, every person who at the time the offence was committed was in charge and was responsible to the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this writ petition. 14. The perusal of the relevant provisions of the said Act deals with the proceedings relating to the sick industrial company alone, but nothing to do with the criminal actions committed by the petitioner or any other person who are liable to be punished for the offence under the Indian Penal Code. The criminal complaint is not against the company or against the managing director or directors in discharge of their official duties relating to the proceedings under the said Act. The criminal complaint filed by the fourth respondent is nothing to do with any of the proceedings under the said Act and it is purely a criminal liability against the person. Therefore, there is no protection for the criminal actions commit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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