KUTTIAMU Vs. MAJESTIC SHARES AND SECURITIES PVT. LTD.

JUDGEMENT

(1.) THE petitioner in these cases is admittedly a director in M/s. Majestic Shares and Securities Pvt. Ltd. It is also not in dispute that respondent No.2 is the Managing Director as revealed from Annexures 2 to 5. The Assistant Registrar of Companies has filed a complaint against the company, the managing director and the director (petitioner) alleging that they had failed to comply with the provisions contained in S.159 of the Companies Act and therefore they were liable to pay penalty as laid down under S.162 of the Act. A copy of the complaint is on record as Annexure I.

(2.) IT is contended by the petitioner that he is not liable to be prosecuted in his capacity as director since respondent No.2, the Managing Director alone is to be proceeded against, in view of Sec.5 of the Act.

(3.) A perusal of the above statutory provision shows that there is considerable force in the above contention raised by the petitioner. As mentioned earlier, there is no dispute that respondent No.2 is the managing director of the company and the petitioner is only a director. If the managing director is available, necessarily he is "the officer who is in default" and he alone is liable and answerable for any violation of the provisions of Act.