OF COMPANIES [2009] 151 COMP CAS 280 (MAD) Karnan C. S. J [Decided on 5-8-2009] Companies Act, 1956 - Sections 159 and 162 - Offence by company —Director’s Liability—Failure to file balance sheet and profit and loss account—Non-executive director resigning before date of default—Proceedings initiated against ex-director –Whether proceedings to be quashed- Held, Yes. Brief facts :
A complaint was filed against the petitioner and
Decision : Reason : to the respondent that he had resigned from the company long back, the respondent had not taken this aspect into consideration. There was non-application of mind by the respondent while arraying the petitioner as an accused. The criminal proceedings against the petitioner were to be quashed.
others under section 159 read with section 162 of the Companies
Act, 1956, in their capacity as the officers of a company which had
failed to file the balance-sheet and profit and loss account in the
prescribed form with the Registrar of Companies. The petitioner,
being accused No. 3 contended that he had held the post of a nonexecutive
director and had resigned long back. It was submitted
that in his replies to the earlier show cause notices, this fact was
conveyed to the Registrar and no communication had been
received from the Registrar. The petitioner produced his
resignation letter to the company and also the minutes of meeting
of the board of directors of the company wherein his resignation
was recorded.
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