GLOBAL DRUGS P. LTD. Vs. M. VENKATANARAYANA

JUDGEMENT

(1.) THIS application is filed under Section 454(5) and (5A) of the Companies Act, 1956 ("the Act", for brevity) praying this Court to take cognizance of the offence committed by accused Nos. 1 to 4 under Section 454(5) of the Act and to summon the accused for being tried and punish in accordance with Sub -sections (5) and (5A) of Section 454 of the Act for having wilfully and deliberately not complied with the requirements under Sub -sections (1), (2) and (3) of Section 454 of the Act.

(2.) M /s. Global Drugs P. Ltd. was directed to be wound up by this Court by order dated April 5, 2005, made in R.C.C. No. 1 of 2004. The official liquidator attached to this Court was appointed as liquidator in terms of Section 449 of the Act. He filed affidavit in support of the application herein. It is stated that as per the information gathered from the Registrar of Companies, Hyderabad, accused are officers/directors of the company on the date of the order of winding up, that accused Nos. 1 and 2 are on the board since the date of incorporation dated October 12, 988, and that accused Nos. 3 and 4 were appointed as directors of the company with effect from November 3, 1992, and November 21, 1997, respectively. The notice under Section 454 of the Act dated May 12, 2005, sent by the official liquidator, was returned unserved with remarks "not claimed" in respect of accused Nos. 1, 2 and 3, and "addressee left" in respect of accused No. 4. It is stated that accused Nos. 1 to 4 are required to file statement of affairs within twenty -one (21) days from April 5, 2005, i.e., the date of winding up order and the last date for filing statement expired on April 26, 2005 and the default is continuing as such. Therefore, the accused are liable to be punished under Section 454(5) of the Act.

(3.) ACCUSED Nos. 3 and 4, who are being tried in this C.A. No. 254 of 2006, were examined under Section 251 of the Criminal Procedure Code, 1973, and they pleaded not guilty. The trial was therefore proceeded with. The company paid assistant in the office of the official liquidator himself was examined as PW1 and marked exhibits P1 to P11 After completion of prosecution evidence, accused Nos. 3 and 4 were examined under Section 313 of the Code of Criminal Procedure on November 1, 2007. They denied the charge and stated that they have not contravened the provisions of Section 454 of the Act. They did not adduce any evidence.