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Issues: Whether the alleged contravention of section 224(7) of the Companies Act, 1956 in removing auditors without prior approval of the Central Government was a continuing offence, and whether cognizance of the complaint was barred by limitation under the Code of Criminal Procedure, 1973.
Analysis: Section 224(7) required prior approval of the Central Government before removal of the auditors. Since the approval was not obtained at the time of removal, the statutory breach was complete then and could not be cured by obtaining permission later. The contravention was therefore a one-time offence and not a continuing one. As the punishment provided was only fine under section 629A, cognizance had to be taken within six months under section 468(2)(a) of the Code of Criminal Procedure, 1973. The complaint was filed and cognizance was taken far beyond that period. The plea to invoke section 473 also failed because no adequate explanation for the delay was shown.
Conclusion: The complaint was barred by limitation, the alleged offence was not continuing, and cognizance could not be sustained.
Ratio Decidendi: A statutory breach requiring prior approval is complete when the prohibited act is done without that approval, and where the offence is punishable only with fine, cognizance taken beyond the limitation period is barred unless delay is properly condoned under the Code of Criminal Procedure, 1973.
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