The HC quashed proceedings against petitioners under Companies...

The HC quashed proceedings against petitioners under Companies Act sections 129/448 for non-disclosure of specified bank notes transactions during demonetization period. The court found the prosecution procedurally defective as the complaint lacked proper satisfaction of prima facie case against the accused. While section 129(7) imposes penalties for non-compliance with financial statement requirements, the court noted that section 439 creates a specific jurisdictional bar requiring complaints be filed by authorized persons. Additionally, the court determined that essential elements of fraud under section 448 were not established, as the auditor merely reported inability to provide details rather than intentional false statements. The HC deemed the proceedings an abuse of process, particularly as no third party was prejudiced by the alleged non-disclosure, and accordingly allowed the application.