VIKRAM KAPUR Vs. DEPUTY REGISTRAR OF COMPANIES

JUDGEMENT

(1.) Crl.O.P.No.16025 of 2018 is filed by A2 to A10 and Crl.O.P.No.11345 of 2018 is filed by A1, who are facing trial in EOCC.No.68 of 2018 for the offence under Sec. 148(6) r/w. 148(8) ;of the Companies Act, 2013, pending on the file of the learned Additional Chief Metropolitan Magistrate [E.O.1], Egmore at Allikulam Complex, Chennai-3 and to quash the same.

(2.) The gist of the complaint is that the A1/Company is a wholly owned Tamil Nadu Government Company registered and incorporated under the Companies Act. The Company was formed by the Government of Tamil Nadu for development and promotion of industries in the State. The petitioners/A2 to A10 are the nominee Directors of A1 Company. The respondent, Registrar of Companies found A1/Company falls under the ambit of Cost Audit, not filed the Cost Audit Report for the financial year 2013-14, even beyond the last date of submission which is contravention of sub-sec. (6) of Sec. 148 of the Companies Act, 2013 [hereinafter referred to as "the Act"]. As per Sec. 148(6), a Company shall within thirty days from the date of receipt of a copy of the cost audit report prepared in pursuance of a direction under sub-sec. (2) furnish Central Government with such report along with full information and explanation on every reservation or qualification contained therein and as per sub-sec. (8), if any default is made in complying with the provisions of this sec. , the Company and every Officer of the Company who is in default shall be punishable in the manner as provided. Since the accused have not complied with the provisions, prosecution launched.

(3.) The contention of the petitioners is that the Companies Act, 2013 was enacted with effect from 29/8/2013, however, under Sec. 1(3) of the said Act, different provisions will be notified on different dates. Sec. 148 of the Act was notified with effect from 1/4/2014, as per the provision, the audit shall be conducted by a Cost Accountant in practice who shall be appointed by the Board. The meeting of the Board of Directors of SIPCOT was convened on 28/6/2016, in Chennai. In that meeting, the Board noted that