RAJ KUMAR Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) THE above revisions have been filed against the order of the learned Additional Chief Metropolitan Magistrate, E. O.-I, Egmore, Chennai in Crl. M. P. No. 392 of 1999 in E. O. C. C. No. 9 of 1997 and Crl. M. P. No. 393 of 1999 in E. O. C. C. No. 301 of 1998.

(2.) THE brief facts of the case in Crl. R. C. No. 272 of 2003 are as follows: the respondent filed a complaint against the petitioners, Accused-1 to 3 and others, who were the Board of Directors of NEPC Micon Ltd. The gist of the complaint is as follows:- One S. K. Gupta, residing at Kanpur, is holding 200 shares in the said company. He sent a letter dated 10. 5. 1996, complaining that he has received the final dividend warrant dated 18. 3. 1996 for Rs. 264. 25, being the amount of 15% final dividend declared by the company at the Annual General Meeting held on 19. 9. 1995. The warrant purported to have been drawn on 18. 3. 1996 was actually posted on 15. 4. 1996, thereby delaying the payment of dividend by more than five months.

(3.) THE dividend warrants have to be despatched to the shareholders within 42 days from the date of declaration, but the accused have despatched the dividend warrant only on 15. 4. 1996, which is a violation of Section 207 of the Companies Act. The respondent came to know about the said default on 30. 8. 1996, which resulted in a show-cause notice to all the accused on 17. 6. 1996. The accused have replied, admitting the delay and stated that the delay occurred due to tight financial market and the company could not collect its receivables. The complaint is filed within the period of limitation. The accused have committed the offence under Section 207 of the Companies Act and are liable for punishment.