9911796707
TMI Blog2005 (6) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... of a company. To put in a nutshell, the principal allegation against them under section 628 of the Companies Act is that there were fictitious entries in the books of account and the balance sheet for the period 1995-96. The balance sheet relates to the period ending March 31, 1996. According to the petitioners - and there is no dispute on that aspect - the balance sheet was filed before the Registrar on December 24, 1996. The Registrar/his subordinate officials had allegedly held an inspection during the year 1999 (February 19, 1999, it is clarified in the counter-statement filed). When such inspection report was forwarded to the Regional Director, Madras, the Directorate observed the fictitious entries in the books of account and the bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 69 of the Code deals with commencement of the period of limitation. The period of limitation under clause ( a ) starts running on the date of the offence. But clause ( b ) stipulates that where the commission of the offence was not known to the person aggrieved by the offence or any police officer, the first day on which such offence comes to the knowledge of such person or to the police officer, whichever is earlier, shall be the date of commencement. 5. The allegation relates to entries in the balance sheet. If this Court can take the view that the Registrar must be imputed with knowledge of the offence as soon as he receives the balance sheet, the prosecution will be barred by limitation. But can that be done? This is the question. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hold that an alert perusal of the balance sheet must have immediately revealed the offences and hence the Registrar could have been imputed with knowledge of the commission of the offence as soon as the balance sheet was received. But that cannot obviously be the case in the case covered by the decision of the Andhra Pradesh High Court or the one relating to fictitious entries alleged against the petitioners herein. 8. Learned counsel for the petitioners relies on regulation 17 of the Companies Regulations framed in 1956 to contend that the Registrar on receipt of a document, like the balance sheet in the instant case shall examine or cause to be examined every document received in his office, which is required or authorised by or unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d above, are usually voluminous and the receipt of the balance sheet or even a cursory perusal of the balance sheet cannot and may not bring to the knowledge of the Registrar and his officials information about the commission of the offence. Detailed consideration and application of mind appears to be necessary and the law appears to have alertly taken note of this contingency when it stipulated that the period of limitation under section 469 will start running only when commission of the offence is known to the person aggrieved. 11. The contention that if such an interpretation were placed on section 469(1)( b ) the complainants will be able to assert that the offence came to their knowledge only on a later point of time that suits the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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