CHAMPDANY INDUSTRES LTD Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) This is an application under Section 633(2) of the Companies Act, 1956 (hereafter "the Act"). It is made by five persons and a company. The first three describe themselves as non-executive directors. The first Petitioner is the promoter of the company AI Champdany Industries Ltd., which is the sixth Petitioner. He is 72 years old. The second Petitioner is the chairman of this company. He is 84 years old. The fourth Petitioner is a whole-time director. The fifth is the company secretary. They ask this Court to relieve them of the offences with which they are charged by five show-cause notices, all dated December 28, 2010. They were issued under various sections of the Act.

(2.) This application was filed in this Court on January 10, 2011. It was moved with a tender number on 10th itself. On the day of moving, I granted an injunction in terms of prayer "c" of the petition. As the Central Government did not file any affidavit-in-opposition till March 9, 2011, by an order made on that day time to file their affidavit was further extended peremptorily. In addition to prayer "c" an order in terms of prayer "d" was also granted. Prayers (c) and (d) are as follows:

(3.) It appears that prior to writing a letter dated June 2, 2010, the office of the Regional Director, Eastern Region, Ministry of Corporate Affairs had conducted an inspection and enquiry with regard to the company under q. It appears that this department made an inspection of their books of account, statutory records and other documents. According to them these documents revealed several violations of the Act. Thus they wrote the above letter on June 2, 2010, with copies to all its directors and its statutory auditor, alleging the violations and asking for explanation. The company replied to it by their letter dated July 13, 2010, denying each and every allegation.