9911796707
TMI Blog2007 (4) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... Crl. M.C. No. 115 of 2005, were that the petitioner-company did not follow the mandatory procedure of indicating, which of its one-third directors were to retire on rotation. In Crl. M.C. No. 112 of 2005, the allegation likewise is that the petitioner was guilty of contravening section 268 insofar as it relates to appointment of the managing director. 2. The ground urged is that section 629A does not prescribe an offence. Counsel relied upon the judgment of the Calcutta High Court reported as Registrar of Companies v. Bharat Produce Co. Ltd. [1980] 50 Comp. Cas. 250. It was urged that the complaint was not maintainable since it was filed far beyond the time prescribed. Learned counsel urged that the time prescribed in such a case w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Courts as well as of that court, particularly, in Raghunath Swarup Mathur v. Har Swarup Mathur [1967] 37 Comp. Cas. 802 ; by the Allahabad High Court and a judgment of the Queen s Bench in Sales-Matic Ltd. v. Hinchcliffe [1959] 1 WLR 1005 as well. It formed the opinion that section 269 as it then stood was declaratory in nature and that having regard to the phraseology applied in section 629A, contravention or violation of section 269 did not amount to an offence. The petitioner has sought parity of reasoning with that decision to say that alleged violation of section 268 does not amount to a punishable offence and they at best indicate an irregularity for which penalty can be imposed. At the relevant time, the penalty, was Rs. 500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rights to approach the court with complaints having regard to the mandate of section 468(2) of the Code of Criminal Procedure, within the time, i.e., six months, as he was possessed of all information. The explanation about a report being supplied later, leading to discovery of facts, wears thin, because the offences relating to the directors and the managing director do not need "discovery" they are technical violations which can be gathered upon immediate publication of, or filing of balance-sheet or annual report by the company. The law of limitation is precisely meant to shut out stale claims, and its operation cannot be suspended to await "discovery" of known facts by the person of body empowered to take action. 8. The complaints ..... X X X X Extracts X X X X X X X X Extracts X X X X
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