9911796707
TMI Blog2014 (3) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... s silent of the subsequent events and subsequent orders passed by this Court which were clearly overlooked in alleging that the present applicants had not complied with the directions issued. Company having stopped its activity in the year 1997, the present applicants being residents of Mumbai, were not in the know of the affairs of the company and in spite of this having got to the attention of the respondents time and again, the present proceedings initiated are unjust and would result in punishing the applicants for no fault of theirs. In any event, even if there was a default in production of all the books and records as claimed by the respondents, in the absence of any further action being taken expeditiously, the prosecution having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany, it was the lot of the applicants to carry on the burden of the company and that notice was issued under Section 454 of the Companies Act, 1956 (hereinafter referred to as 'the Act', for brevity) dated 27.11.2002, demanding that the applicants file their statement of affairs along with an affidavit and that in case of failure, action would follow. The applicant made a representation dated 24.12.2002 seeking time to furnish documents. Subsequently, they had furnished all such documents on which they could lay their hands on, on 25.02.2003 and also made a detailed reply with regard to the notice, which was duly acknowledged by the respondents. Thereafter, the respondent had filed an application in Company Application No.70/2009 under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 18.09.2006 discharged one Ratan Lath, Shailesh Fernandes, and Naresh Tibrewala, as they had resigned from the Directorship of the company before the winding up petition. The applicants had then filed C.A.75/2007 to condone the delay in filing the statement of affairs and to receive the same. That was allowed in terms as follows: "Heard the counsel for the parties. According to Mr. Deepak, Respondents have rectified the defects notified by the OL in the statement of affairs filed by the respondents. Application filed to condone the delay in complying with the statement of affairs. Considering the cause shown by Mr. Babulal Lath, in the affidavit filed along with the CA 75/2007, delay in complying with the requirement of provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... just and would result in punishing the applicants for no fault of theirs. In any event, even if there was a default in production of all the books and records as claimed by the respondents, in the absence of any further action being taken expeditiously, the prosecution having been launched much after there was alleged non-compliance, the applicants were in a position where they would not be able to comply having regard to the sheer lapse of time and the applicants not being in possession of any such documents or records. In the above circumstances, the application is allowed. All further proceedings pending before the Special Court for Economic Offences in C.C.No. 131/2008 insofar as the applicants are concerned is hereby stayed. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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