S.B.I. HOME FINANCE LTD. AND KIDAMBI SRINIVASH VARDA KRISHNAMACHARI Vs. REGIONAL DIRECTOR, DEPTT. OF COMPANY

JUDGEMENT

(1.) This is a sequel to an earlier an application of similar effect having been made by the petitioner. That earlier petition being CP No. 275 of 2003, under Sec. 633(2) of the Companies Act, 1956 was dismissed on the ground that it was premature and liberty was reserved thereunder for the petitioner to take appropriate steps upon receipt of a further show -cause notice.

(2.) The second show -cause notice has prompted the petitioner to seek to be excused for any offence that he may have committed or for being exonerated if there was no offence. Sec. 633(2) of the Act empowers the High Court to entertain an application by an officer of a company who has reason to apprehend that any proceeding may be brought against him in respect of negligence, default, breach of duty, misfeasance or breach of trust. The apprehension in this case was based on notices dated December 31, 2004 that charged the petitioner with the violation of the provisions of Sec. 628 read with Sec. 211 on one count, and with the violation of Sec. 628 on the second count.

(3.) It is an undisputed position, as would appear from the affidavit filed on behalf of the Registrar of Companies in the earlier petition, that the petitioner herein came to be a Director of SBI Home Finance Limited (the company) on July 27, 2002. The date is important as on that date depends the fate of the charge on the first count.