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TMI Blog2007 (2) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... le annual returns within the stipulated time. Three others relate to the contumacious failure to file balance sheets within the stipulated period. The prosecutions are under sections 159 and 220(3) of the Companies Act, both read with section 162 of the said Act. The complaints were filed on 28-7-2005. Cognizance has been taken. The petitioners have rushed to this court with a prayer that the proceedings against them in these six cases may be quashed invoking the powers under section 482, Code of Criminal Procedure, 1973. 2. What is the reason? The learned counsel for the petitioners relies on two specific grounds. He, first of all, contends that there was a scheme called Simplified Exit Scheme, 2005 , which was in force till 31-8-2005 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prosecution proceedings. That Scheme was open till 31-8-2005 and, therefore, the complaint filed on 28-7-2005 is legally unsustainable. 5. I do not find any merit in this first contention. A reading of Annexure-1 shows that really, what is intended is that a defunct company who successfully avails of the Simplified Exit Scheme, 2005 can avoid further prosecution proceedings. The petitioners did not succeed in availing of the benefits of the said Scheme. Such a person who did not succeed in availing of the scheme cannot according to me insist that the prosecution initiated against him on 28-7-2005 is bad for the reason that the same has been initiated prior to 31-8-2005. No failure of justice is shown to result. Of course, if the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(2) of the Companies Act below : " Fees in Schedule X to be paid ****** (2) Any document required or authorised by this Act to be filed or registered, or any fact required or authorised by this Act to be registered, with the Registrar on payment of the fee specified therefor in Schedule X, may, without prejudice to any other liability, be filed or registered after the time, if any, specified in this Act for its filing or registration on payment of such additional fee not exceeding ten times the amount of the fee so specified at the Registrar may determine." 7.1 The language of section 611(2) thus makes it very clear that the payment of the amounts under section 611(2) is without prejudice to any other liability which the defaulter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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