Dattatraya Murali Shirodkar v. The Deputy Registrar Of

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 10.01.2022

CORAM

THE HON'BLE MR.JUSTICE N.SATHISH KUMAR Crl.O.P.No.6853 of 2018 and Crl.M.P.Nos.3516 & 3517 of 2018 Dattatraya Murari Shirodkar ... Petitioner Vs The Deputy Registrar of Companies, Tamil Nadu, having office at Shastri Bhavan, 26, Haddows Road, Chennai - 600 006.

... Respondent PRAYER: Criminal Original Petition filed under Section 482 of Criminal Procedure Code, to call for the records in E.O.C.C.No.399 of 2017 on the file of the Additional Chief Metropolitan Magistrate Court, E.O.1, Chennai-3, quash the summons and all further proceedings thereof.

For Petitioner : Mr.PL.Narayanan For Respondent : Dr.D.Simon, Central Government Standing Counsel

O R D E R

This Petition has been filed to quash the proceedings initiated by the Respondent for the alleged violations in conducting Annual General Body Meeting and filing Balance Sheet in time as stipulated in the Companies Act 1956.

2. This Petitioner is arrayed as Accused No.5 in EOCC No.399 of 2017. The main contention of the learned counsel for the Petitioner is that the Petitioner is an independent Director, he was nominated and hence he is not responsible for any act by the other Directors to constitute an offence under Companies Act 1956. Hence he sought to quash the proceedings.

3. Counter affidavit has been filed by the Respondent, wherein para 5 clearly stated as follows:

https://hcservices.ecourts.gov.in/hcservices/

"5. The Respondent humbly submits that petitioner/5th Accused is not liable for any act or commission by the company or by any officers of the company which constitute a breach or violation of any provision of the Companies Act, vide Section 14

(12) of the Companies Act, 2013 and also in tune with the General Circular No.08/2011 issued by the Ministry of Corporate Affairs."

4. As the Respondent himself admitted that the Petitioner is independent director, he is not responsible for any act or commission by the company. Further, merely because they are nominated himself as a Director, he cannot be prosecuted for the alleged violation. In such a view of the matter, the proceedings initiated against the Petitioner is quashed.

5. In the result, the Criminal Original Petition is Ordered. Consequently, connected Miscellaneous Petitions are closed.

Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar ggs / kbs To

1. The Additional Chief Metropolitan Magistrate Court, E.O.1, Egmore at Allikulam, Chennai - 3.

2. The Deputy Registrar of Companies, Tamil Nadu,Shastri Bhavan, 26, Haddows Road, Chennai - 600 006.

3.The Public Prosecutor, High Court, Madras - 600104. +1 cc to Dr.Simon, CGSC Sr.NO. 2514 Crl.O.P.No.6853 of 2018 and Crl.M.P.Nos.3516 & 3517 of 2018 pmk(CO) A.SK(08.02.2022) https://hcservices.ecourts.gov.in/hcservices/