1986 (8) TMI 366

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....UDGMENT David Annoussamy.-This revision petition is against the conviction. A prosecution was launched by the Registrar of Companies, Tamil Nadu, for the violation of the provisions of section 295 of the Companies Act. Accused No. 1 is a private limited company. Accused Nos. 2 to 4 are the directors of the company. Accused No. 5 is the beneficiary of the loan. She happens to be the wife of a....

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....our ingredients of loan as per that definition, came to the conclusion that the advance paid to accused No. 5 amounted to a loan and accordingly convicted the accused for an offence punishable under section 295(4) of the Act and sentenced them to pay a fine of Rs. 25 each by its judgment dated July 19, 1983. As against that judgment, all the accused have preferred this criminal revision petition. ....

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....iven to the fifth accused in her capacity as an employee, it would amount to a salary advance. In other words, the court will have, in such cases, to find out whether the alleged salary advance is a genuine salary advance or a loan disguised as salary advance. For that purpose, it would be necessary to consider whether the beneficiary is a bona fide employee, whether the advance falls within the g....