2022 (6) TMI 390

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....he proceedings in C.C.No.163 of 2018 on the file of the learned Judicial Magistrate No.III, Coimbatore, as against the accused persons for the alleged offence under Section 148 of the Companies Act, 2013. 2. The crux of the allegations in the complaint is that the first petitioner- Company has not appointed Cost Auditor within the prescribed limits as contemplated under the proviso to Section 148 of the Companies Act, thereby, these petitioners are liable to be punished under Section 148 of the Companies Act. 3. The main contention of the learned counsel appearing for the petitioners is that, as per the Notification issued by the Ministry of Corporate Affairs, vide Notification, dated 31.12.2014, the Companies (Cost Records and Audit)....

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.... shows that all the amounts are below Rs.35 Crores, which is fixed under the amended Rule 4. Therefore, even without verifying the same, the prosecution has been launched by the respondent and hence, the same is sought to be quashed. 4. The learned Central Government Standing Counsel appearing for the respondent has not disputed the amendment of the relevant Rule produced by the learned counsel for the petitioner in the typed set of papers filed along with the Crl.O.P. 5. This Court perused the entire materials available on record. 6. The relevant portion of Section 148 of the Companies Act, 2013, as referred to in the complaint filed by the respondent, under Section 148(8) of the Companies Act, 2013, against the petitioners, which....

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....t clear that the Central Government may direct that the audit of cost records of class of companies which are covered under sub-section (1) and which have a net worth of such amount as may be prescribed or a turnover of such amount as may be prescribed, shall be conducted in the manner specified in the order. 8. Moreover, the amendment of Companies (Cost Records and Audit) Rules, 2014, shows that any Company engaged in the production of the goods or providing services specified in the Table therein, shall submit cost audit. Serial No.29 of the said Table as specified in the amended Rule 3 of the Companies (Cost Records and Audit) Rules, 2014, deals with the "textiles", wherein "trading" has been specifically omitted, whereas, "trading" i....