SANJAY SREESHA Vs. SERIOUS FRAUD INVESTIGATION OFFICE

JUDGEMENT

(1.) This petition is filed by the petitioner/accused accused under Sec. 482 of Cr.P.C for quashing criminal proceedings in CC No.34/2012 pending on the file of Special Court for economic offences Bangalore to set aside the order of the trial court dtd. 23/2/2012 for the offence punishable under sec. 209A and 240(3) of the Companies Act, 1956.

(2.) The case of the petitioner is that the respondent is Serious Fraud Investigation (officer herein referred as SFIO) filed complaint under sec. 200 of Cr.P.C against the petitioner for violation of Sec. 240 (3) of Companies Act, alleging that they issued summons to the petitioner on 16/6/2011 and he has not replied to the notice. Again one more summons issued on 20/6/2011 to be appeared on 28/6/2011 and it is also alleged the final summons was issued on 1/7/2011 to appear before them on 7/7/2011 and he has not appeared and he has sent a reply that he was not employed as Auditor of the Company. Therefore private complaint came to be filed and the trial court took the cognizance of the offence against the petitioner, which is under challenge.

(3.) Learned senior counsel appearing for the petitioner has mainly argued on the ground, the petitioner was not employed by the Company as per Sec. 240 of Companies Act. The petitioner was the partner in the firm in which the petition was appointed as Auditor. Such being the case, without making the firm as an accused the petitioner cannot be prosecuted and he cannot be vicariously be held liable for the penal provisions. Therefore, prayed for quashing the proceedings.