9911796707
TMI Blog2013 (10) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... or any of the defaults committed by the Company or by the Directors of the Company. If the respondent chooses to make him responsible for any lapse or default committed by the Company or its Directors before the petitioner ceased to be an Additional Director, then the respondent shall be wholly justified in doing so - It was also obvious from the records that for the show cause notice the petitioner had issued a suitable reply stating that he should not be held responsible for the lapses on the part of the Company or the Directors after he ceased to be an Additional Director of the Company - As the same was not accepted by the respondent, the petitioner had approached the Court by way of present petition - the show cause notice shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Loss Account for the financial year ended on 31.3.2008 long after he ceased to be an Additional Director of the Company concerned and that hence the petitioner should be relieved from the proposed proceedings sought to be initiated by issuing the show cause notice dated 1.7.2010. 2. The respondent has filed a counter contending that since no Form-32 was filed informing the Registrar of the acceptance of the resignation of the petitioner by the Managing Director, the petitioner shall be deemed to be a person responsible for the filing of the statutory returns and the respondent cannot find fault with for issuing the impugned show cause notice to the petitioner also. 3. I have heard the submissions of the learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall hold office only up to the date of the next Annual General Meeting of the Company. The tenure of Additional Director by operation of law comes to an end by the date on which the Annual General Meeting of the Company is convened subsequent to such appointment as Additional Director. 6. It is not the case of the respondent that the petitioner, after having been appointed as Additional Director by the Board of Directors, was subsequently appointed as a regular Director in the Annual General Meeting of the Company. As such, even in the absence of any resignation on the part of the petitioner his tenure as an Additional Director of the Company in question would have come to an end on 24.2.1998, the admitted date of the Annual General Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Director. It is also obvious from the records that for the show cause notice the petitioner has issued a suitable reply stating that he should not be held responsible for the lapses on the part of the Company or the Directors after he ceased to be an Additional Director of the Company. As the same was not accepted by the respondent, the petitioner has approached this Court by way of present petition. Therefore, this Court comes to the conclusion that the show cause notice dated 1.7.2010 shall be ineffective as against the petitioner and the petitioner shall be relieved of the proposed proceedings based on the aforesaid show cause notice. 8. In the result, the Company Petition is allowed and the respondent is directed to relieve the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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