S SANTOSH Vs. ASSISTANT REGISTRAR OF COMPANIES

JUDGEMENT

(1.) By consent, the matter is taken up for final hearing.

(2.) The petition is filed seeking a direction to call for the records in E.O.C.C. No. 91/09 on the file of the learned Additional Chief Metropolitan Magistrate's Court (Economic Offence-1), Egmore, Chennai-600 008 and quash the same.

(3.) The 1st Petitioner is the Managing Director and the 2nd Petitioner is the Company Secretary of one M/S. California Software Company Limited. The said Company was inspected by an authorised Officer of the Respondent. It was observed that during the year 1999-2000, the Company had advanced an interest free loan of Rs. 2 crores to California Software Employees Trust, to enable the trust to purchase Rs. 4,00,000/- equity shares of the Company and further issued shares to selected employees of the Company under its Employees Stock Offer plan (ESOP). The Company was asked to furnish the names and addresses of the members of the above said trust and also to furnish the complete address of the trust and names and addresses of the trustees. Further the company was asked to state as to how much has been so far recovered from the trust. If not, to furnish the reasons for the same. Above information called for by the Inspecting Officer was not furnished by the Company and its Directors/Officers/employees which is a contravention under Section 209A (2) of the Companies Act, 1956 (herein after referred as Act).