Court rules in favor of petitioners, ROC cannot prosecute private disputes under repealed Companies Act. Petitioners relieved from prosecution.

The Court found in favor of the petitioners, ruling that they had not committed any illegality as alleged by the ROC. It was determined that the ROC should not adjudicate private disputes, and prosecution under Section 628 of the Companies Act, 1956 was not permissible due to its repeal. Consequently, the petitioners were relieved from prosecution in E.O.C.C.No.73 of 2022. The Court directed the parties to submit the order to the Additional Chief Metropolitan Magistrate for the petitioners' relief, and the petitions were disposed of accordingly.

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Issues involved:
The Company Petitions seek relief from alleged acts of default and liability complained by the respondent in E.O.C.C.No.73 of 2022.

Details of the Judgment:

Issue 1: Sale of Property Dispute
The Town Benefit Fund (Kumbakonam) Limited sold a property through public auction, leading to a dispute between Mr.V.Kalyanaraman and Mr.B.Mukundaramanujam over the sale deeds. This resulted in legal proceedings including a suit and an appeal.

Issue 2: Alleged Loss Disclosure
Mr.V.Kalyanaraman filed complaints alleging the company incurred a loss due to incorrect recording of sale consideration. This led to proceedings initiated by the ROC against the petitioners for violation of Section 628 of the Companies Act, 1956.

Issue 3: Maintainability of Petition
The petitioners argued that the proceedings initiated by the ROC were not valid and sought relief under Section 463(2) of the Companies Act, 2013. The respondent contended that the petition was not maintainable under Section 463(1) of the Act.

Judgment:
The Court found that the petitioners had not committed any illegality as alleged by the ROC. It was noted that the ROC should not adjudicate private disputes, and the prosecution under Section 628 of the Old Companies Act was not permissible due to the repeal of that provision. Therefore, the petitioners were relieved from prosecution in E.O.C.C.No.73 of 2022.

The Court directed the parties to submit the order to the Additional Chief Metropolitan Magistrate, who was instructed to relieve the petitioners from the prosecution. The petitions were disposed of accordingly.

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