2020 (9) TMI 129

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.... the Director of M/s.Square D Distilleries Limited. The petitioner is arrayed as the second accused in the complaints in E.O.C.C.Nos.271 and 273 of 2005 respectively. Challenging the said complaints, these petitions have been filed. 3.The allegation in E.O.C.C.No.271 of 2005 is that M/s.Square D Distilleries Limited was inspected under Section 209 A of the Companies Act, 1956, by an Officer authorized by the Ministry. During the course of inspection, it was observed that the amount of Rs. 20.00 Crores borrowed from M/s.DSQ Bio-tech Limited and subsequently the loans made to M/s.Uniforge Steel Works Limited has not been reflected in the Balance Sheet for the year 31.03.2001 under the headings 'unsecured loan' and 'loans and adva....

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..... He would further submit that the complaints filed by the respondent is barred by limitation. Accordingly, he prayed for allowing the criminal original petitions. 6.The learned Central Government Standing Counsel appearing for the respondent would submit that the limitation aspect has been considered by the Delhi High Court in its decision dated 22.09.2010 made in Crl.MC.No.4007 of 2009 in the case of Ajay Jain Vs. Registrar of Companies NCT of Delhi & Haryana, wherein, it is held that the limitation of offences under Sections 63 and 628 of the Companies Act, 1956, starts from the date of knowledge of making a false statement. 7.The learned Central Government Standing Counsel appearing for the respondent would further submit that in the ....

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....ders to costs." 10.A perusal of the decision cited supra makes it clear that limitation of offences under Sections 63 and 628 of the Companies Act, 1956, starts from the date of knowledge of making a false statement. 11.Section 628 of the Companies Act, 1956, deals with penalty for false statements and it is useful to extract hereunder the said Section: "Penalty for false statements. 628.If in any return, report, certificate, balance sheet, prospectus, statement or other document required by or for the purposes of any of the provisions of this Act, any person makes a statement - (a) which is false in any material particular, knowing it to be false; or (b) which omits any material fact, knowing it to be material; he shall, save....