1987 (4) TMI 227

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hotra, for the Petitioner. Shri H.S. Brar, for the Respondent. [Judgment]. - The petitioner along with three other directors of Messrs. K.D. Woollen Mills Private Ltd., as also the company itself is sought to be proceeded against under Section 8(2) and (4) of Foreign Exchange Regulation Act, 1973 (for short, "the Act"), as a result of the complaint (Annexure p. 1) filed by the Assistant D....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was incharge of, and was responsible to, the company for the conduct of business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly : Provided that nothin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ph 9 of the same which reads as follows : "9. That accused No. 1 is the company and the accused Nos. 2 to 5 were its directors and who were managing the affairs of the Company." 3.  Having heard the learned counsel for the parties at some length, I find that in the light of the abovenoted contents of Paragraph No. 9 of the complaint, neither the petitioner nor the other directors like h....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ictly. 6.  What then does the expression 'a person incharge and responsible for the conduct of the affairs of a company' mean? it will be noticed that the word 'company' includes a firm or other association, and the same test must apply to a director incharge and a partner of a firm incharge of a business. It seems to us that in the context a person 'incharge' must mean that the person sho....