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TMI Blog2019 (10) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... t be sustained. Proceedings initiated against the petitioners are quashed - Petition allowed. - CRIMINAL PETITION No. 3888/2013 - - - Dated:- 7-6-2019 - MR. JOHN MICHAEL CUNHA, J. Petitioner: (By Sri A.H. Bhagavan, Advocate) Respondent (By Smt. A.R. Sharadamba, CGC) ORDER 1. Heard learned counsel for petitioners and learned standing counsel appearing for respondent. 2. Petitioner No.1 is a company incorporated under the Companies Act 1956. Petitioner Nos.2 to 6 are the Chairman, Managing Director, Joint-Managing Director, Executive Director and Company Secretary of the said company. Respondent issued a show-cause notice dated 17.03.2009 calling upon the petitioners as to why act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioners have failed to comply with the requirement under Section 97 of the Companies Act, the petitioners are liable for prosecution and hence, there is no error or illegality in the order passed by the learned Magistrate taking cognizance of the alleged offences. In support of his submission, learned counsel has placed reliance on the decision of this Court in the case of Chandra Spinning and Weaving Mills(P.) Ltd. v. Registrar of Companies, ILR 1988 KAR 149. Considered the submissions and perused the records. 5. Since the whole controversy raised by the parties revolves around the interpretation of Section 97 of the Companies Act, the said section is extracted hereinbelow.- 97. Notice of increase o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 97 deals only with the quantum of fine. Merely because it states that the fine shall be levied at ₹ 50/- every day, during which, defaults continues, the offence under Section 97(1) does not become a continuing offence. This view finds support from the decision in Chandra's case referred supra, wherein dealing with analogous provision under Section 220 of the Companies Act, this Court has held that such a provision cannot be construed as a continuing offence. Under section 220 of the Companies Act, the company was required to submit three copies of balance sheet and profit and loss account for the academic year to the Registrar of Companies for Karnataka within 30 days from the date on-which the balance sheet and the Profit and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lt is repeated from day to day after the initial default. 7. Having regard to the above proposition of law and the facts involved in the case, in my view, the argument of the learned counsel is well-founded. In terms of Section 97, the offence gets completed on expiry of 30 days from the date of passing the resolution or from the date of subsequent resolution. Since action has been initiated against the petitioner beyond the period of 30 days, prosecution launched against the petitioner is barred by limitation and therefore cannot be sustained. Accordingly, petition is allowed. Proceedings initiated against the petitioners in C.C.No.26/2012 on the file of Special Court (Economic Offences), Bengaluru are quashed. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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