2010 (9) TMI 888

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....Anuj Aggarwal for the Respondent. JUDGMENT 1. This petition under Section 482 Cr.P.C has been preferred by the petitioner for quashing the proceedings initiated in Complaint No.477 of 2002 filed by Registrar of Companies under Sections 63 and 628 of the Companies Act, 1956 for making false statement in the prospectus in 1995. 2. It is submitted by counsel for the petitioner that the compl....

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....r 2000 and the company was taken over by other management and there was no complaint from any of the investors. 3. A perusal of complaint filed by the complainant would show that the petitioner had issued prospectus being a public limited company and the prospectus informed the shareholders that the petitioner would undertake business of leasing activities and shall do business of hire purchase....

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....tatement is a statement which has been made purposely so that people may believe existence of a fact which does not exist. In case of prospectus of a company, a statement of objects, which the directors had no intention to carry, amounts to false statement. The intention of making a false statement is to mislead or deceive the person to whom the statement is made. In this present case, the petitio....

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....o utilize the same for their own companies and firms in which they were directors or to invest in shares. It is thus obvious that the statement made in the prospectus was prima facie a false statement deliberately made knowing fully well that the funds were not going to be utilized for the purpose they were collected. I consider that the plea taken by the petitioner that the case falls under Secti....