STATE Vs. USTEPALLI SWAMI CHETTY

JUDGEMENT

(1.) THIS is an appeal by the State against the acquittal of the respondents herein on the ground that no proper sanction has been accorded for the prosecution of the accused for offences under Sections 76 and 131 of the Indian Companies Act A complaint was laid against the respondents by the assistant Registrar at the instance of the Registrar of Joint Stock Companies for the said offences. Under Section 248 (2) of the Indian Companies Act, "the Central Government may appoint such registrars and assistant registrars as it thinks necessary for the registration of companies under this Act, and may make regulations with respect to their duties." In pursuance of this power the Central Government has made certain regulations and we are concerned here only with Regulation 14 (a)and (b) Regulation 14 (a) says "the Registrar may in his discretion institute such enquiries or make such investigation in respect of any matter as may in his opinion be necessary for the proper performance of his duties and the due administration of the Act and may institute or cause to be instituted prosecutions under the Act for defaults on the part of companies or persons in furnishing such returns, documents or notices as the law requires them to furnish or for any other non-compliance of the provisions of the Act for which penalties are provided therein. " *

(2.) CLAUSE (b) says "whenever it is found necessary to enforce the penal provisions of the Act against any company or person, the Registrar or Assistant registrar, as the case may be, shall request the State Counsel in case the registered office of the company concerned is situated in the city of Madras, and in other cases, the District Magistrate of the district in which such registered office is situated, to take the necessary steps. "