M. PITCHAIAH AND ORS. Vs. K.S. PERIYASWAMY

JUDGEMENT

(1.) The petitioners herein are arraigned as accused persons in a private complaint filed by respondent herein in respect of the offence punishable under Section 447 of the Companies Act, 2013; cognizance is taken by the Court against the accused persons.

(2.) The complaint allegation is to the effect that the complainant is a share holder of M/s. BEML Ltd. Company, Bengaluru. The President of India is a major share holder holding 54.03% equity shares by investing public money. He appoints the Board of Directors under the Companies Act, Articles of Association and Memorandum of Association of BEML Ltd. Company (for short 'Company'). The board of directors of the company recommended 25% of the dividend to the share holders of the company for the financial year 2012-13, though the company incurred loss to the extent of 122.00 Crores for the financial year 2012-13. It is contrary to the Section 205 of the Companies Act, 1956 and Section 123 of the Companies Act, 2013 (Hereinafter called as 'Act'). In the 49th AGM held on 13.09.2013, it was questioned by the share holders, but there was no suitable reply. Dividend warrant was sent. The complainant has sent protest to the Company Secretary through E-mail. He had returned the dividend mount to the Company Secretary through registered speed post. 1st accused is the company, 2nd accused is the Chairman and General Manager, Accused Nos.3 to 14 & 16 are the Directors, Accused No.15 is the Company Secretary and Accused No.17 is the BGM of accused No.1 are responsible to the alleged offence.

(3.) Learned Magistrate/Special Court (Economic Offences) Bengaluru, after recording sworn statement of the complainant, has taken cognizance for the offence punishable under Section 447 of the Act of 2013 and issued summons.