https://www.taxtmi.com/caselaws?id=111620 A show-cause notice proposing prosecution under the Companies Act was quashed because it lacked material particulars and a rational nexus between the allegations and the supporting facts. The court noted that the notice accused erstwhile directors of non-filing of statutory returns and diversion of public issue funds, yet did not disclose the basic facts or material relied on to form the proposed opinion. It also recorded that the petitioners had resigned before the alleged defaults and that the notice rested largely on unverified balance-sheet assumptions. A punitive notice must set out its factual basis to afford a real opportunity to answer the charge. en-us Tue, 27 Jun 2006 00:00:00 +0530 Tue, 24 Apr 2012 13:15:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111620 A show-cause notice proposing prosecution under the Companies Act was quashed because it lacked material particulars and a rational nexus between the allegations and the supporting facts. The court noted that the notice accused erstwhile directors of non-filing of statutory returns and diversion of public issue funds, yet did not disclose the basic facts or material relied on to form the proposed opinion. It also recorded that the petitioners had resigned before the alleged defaults and that the notice rested largely on unverified balance-sheet assumptions. A punitive notice must set out its factual basis to afford a real opportunity to answer the charge. Case-Laws Companies Law Tue, 27 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111620