M.SHANMUGHA VADIVEL Vs. ASSISTANT REGISTRAR OF COMPANIES

JUDGEMENT

(1.) THE three former directors of the Company M/s. Teak Tex Processing Complex Ltd., P.B. No.501, Kanjikode, Palakkad, have filed these petitions to quash the complaint filed by the respondent under various provisions of the Companies Act.

(2.) IN the complaint which is the subject matter of Crl.M.C. No. 2560 of 2007, the offence alleged is under Section 217(3) of the Companies Act. According to the complainant, the petitioners failed to furnish Board's report to which the balance sheet of the Company was also to be attached.

(3.) IN the complaint which is the subject matter of Crl.M.C.No. 2566 of 2007, it is alleged that the petitioners have violated Section 297 of the Act which provides that approval of the Board of Directors of the Company is required in respect of contracts entered into by the company in which its directors are interested. Further in case of a company having paid up capital of Rs.1 Crore and above previous approval of the Central Government is required in respect of contracts in which directors are interested. It is alleged that in respect of transaction entered into by the Company, the consent of Board of Directors was not obtained and that the approval of the Central Government was also not obtained by the Company.