TaxTMI 
TaxTMI 
2022 (4) TMI 1629
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....nies Act 1956 requires that this amount shall be credited to the Fund "Investors Education and Protection Fund". 3. Investors Education and Protection Fund (uploading of information regarding unpaid and unclaimed amounts lying with the companies) Rules 2012 mandates every company shall within 90 days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of Section 166 of the Act and every year thereafter till completion of seven years period, identify the unclaimed amounts as referred to in sub-Section (2) of Section 205C of the Act, separately furnish and upload on its own website as also on the Ministry's website or any other website as may be specified by the Government, a statement of information through E Form 5 INV, separately for each year. 4. Petitioners have not filed E form 5 INV as required under the above rule. Show cause notice was issued on 21.07.2014. No reply was received from the petitioners. Therefore, petitioners are liable to be prosecuted for the offence aforesaid. 5. Learned counsel for the petitioners submitted that the complaint is not maintainable in law for the following reasons, ....
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....ted much prior to the date on which, the complaint was re-presented i.e., on 30.09.2013. There is no explanation forth coming as to why the complaint which was presented on 21.07.2012 was returned and as to why the complaint was re-presented after more than one year. Therefore, this Court has no hesitation to hold that the complaint is vitiated on account of total non-application of mind. 52. As regards the other points canvassed, the observations and the findings rendered by this Court in the previous paragraphs would be equally applicable to these batch of cases, the complaint is vitiated by total non-application of mind. The complainant did not afford an opportunity to the petitioners to rectify the so called defects and the show cause notice itself was issued with a threat of prosecution. The bonafides of the explanation offered, has not been considered rather not even referred to in the complaint. At the first instance, when the complaint is perused one gets an impression that the petitioners were never put on notice and no explanation was submitted by them. When the complainant has issued a show cause notice on 24.10.2013, calling upon the petitioners to explain with....
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....itioners have not done that and therefore, they are liable to be prosecuted. 8. Considered rival submissions and perused the records. 9. The cause of action for filing this complaint is that every company shall within 90 days after holding its Annual General Meeting or the date on which it should have been held and every year thereafter, till completion of seven years period, identify the unclaimed amounts as referred to in sub- Section (2) of Section 205C of the Act and upload on its own website and also on the Ministry's website or any other website specified by the Government through the E Form 5 INV giving details as aforesaid. Petitioners have not filed E Form 5 INV as required, leading to filing of this complaint. 10. One of the submissions of the learned counsel for the petitioners is that Sub-Section (2) of Section 205C of the Act, the amounts referred in (a) to (d), shall form part of Investors Education and Protection Fund, only if it remains unclaimed and unpaid for a period of seven years from the date they became due for payment. The dividend was declared for the period ending 31.03.2013. Therefore, giving a show cause notice before the completion of seven....
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....ng or the date on which it should have been held as per the provisions of Section 166 of the Act and every year thereafter till completion of seven years period. It also requires that for the financial year ending 31st March, the information shall be filed latest by July 31st of the succeeding year. This rule is made obviously for informing the persons interested to claim the amount publicly and to facilitate making their claim. This information should be uploaded in the website as indicated above for every financial year ending 31st of March latest by 31st July of succeeding year. Therefore, the contention of the learned counsel for the petitioners before the completion of seven years period, show cause notice cannot be given for not uploading the aforesaid information and prosecution cannot be launched, in the considered view of this Court, it is not legally sustainable. Therefore, on this ground petitioners cannot seek to quash the complaint. 13. The complaint allegation shows that petitioners have not filed E Form 5 INV as required in the show cause notice issued dated 21.07.2014 given by the respondent. However, it is the case of the petitioners that they gave reply dated 2....