1994 (1) TMI 208

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.... this petition, under section 482 of the Criminal Procedure Code, the petitioners challenge the Criminal Complaint No. 47 of 1991, pending against them, before the Special Court of the Judicial Magistrate (Economic Offences), Rajasthan, Jaipur, for the offence under section 220 of the Companies Act, 1956 (for short "the Companies Act"). At the relevant time, all the four petitioners are said to be....

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.... the like punishment as is provided by section 162 for a default in complying with the provisions of section 159, 160 or 161." A bare perusal of the aforesaid provision makes it clear that for non-compliance with the requirements of sub-sections (1) and (2) of section 220, the company and every officer of the company, who is in default, is liable to punishment. Section 5 of the Act defines office....

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....has given his consent in this behalf to the board. (g)where any company does not have any of the officers specified in clauses (a) to (c ), any director or directors who may be specified by the board in this behalf or where no director is so specified, all the directors : Provided that where the board exercises any powers under clause (f) or clause (g ), it shall, within thirty days of the exerc....

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....(2) of section 220 of the Companies Act. In the above situation, when the averments made in the complaint, if taken on their face value, do not make out a case against the petitioners, it would be in the interest of justice to quash the complaint to prevent abuse of the process of the court (see R.P. Kapur's case, AIR 1960 SC 866 and Madhu Limaye's case, AIR 1978 SC 47). The result of the above ....