M/S. BUHARI SONS PVT. LTD. MADRAS AND A.M. BUHARI, M.B. BUHARI AND M.C. BUHARI Vs. ASST. REGISTRAR OF COMPANIES, SHASTRI BHAWAN/ MADRAS

JUDGEMENT

(1.) THIS petition has been filed by the accused in C.C. No. 478 of 1983 on the file of the Additional Chief Metropolitan Magistrate, Madras, to quash the proceedings pending against them.

(2.) THE second Petitioner is the Managing Director of the first Petitioner -company and Petitioners 3 and 4 are Directors of the said Company. The Respondent, viz., Asst. Registrar of Companies, Madras, filed a complaint against the Petitioners under Section 58 -A(3)(c), 58 -A(1) and 58(A)(4) of the Companies Act, 1956, on the allegation that the first Petitioner -company has failed to comply with the various provisions indicated above.

(3.) ON the other hand, learned Counsel for the Respondent submitted that seven deposits were received prior to 1 -2 -1975 for a period not less than six months, vide returns of deposits as on 31 -3 -1975, 31 -3 -1976, 31 -3 -1977 and hence they had violated the provision of R. 3(1) of Companies (Acceptance of Deposits) Rules, 1975 which is punishable under Section 58 -A(6) of the Companies Act. It is further submitted by the learned Counsel that the company has accepted fresh deposits from third parties between 3 -4 -1975 and 1 -12 -1975 to the tune of about Rs. 30,000 as is evident from the return of deposits on 31.3.1976 which is in violation of R.3(2)(ii). It was further contended that the offence complained of is a continuing offence and hence the question of limitation does not arise.