PUBLIC PROSECUTOR Vs. T P KHAITAN

JUDGEMENT

(1.) THESE three appeals by the Public Prosecutor raise for consideration the proper interpretation of Section 91 (B) (1), Indian Companies Act. The Magistrate before whom the accused in the several appeals were charged has held that there was no contravention of the provisions of this section and has by his judgment dated 301-1956 acquitted the accused. It is from this order of acquittal that these appeals have been preferred. The learned Advocate-General appearing for the appellant urged that he desired to have a considered decision on the construction of the provision I have mentioned above, but as 3 was clearly of the opinion that the decision of learned Magistrate was correct, I did not think it necessary to issue notice to the accused under section 422, Criminal P. C.

(2.) THE facts which have given rise to these proceedings are as follows : Messrs. Oakley Bow-den and Co. (Madras) Ltd. , is a public company registered under the indian Companies Act. It is managed by a Board of three directors and under the articles of the company the Board acts either at meetings or by resolutions passed by circulation.

(3.) ON 2-6-1953 the Board of Directors which then consisted of T. P. Khaitan. V. S. Krishnaswami and V. S. Bhasin passed by circulation the following resolution :