NALCO Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) In all these three petitions the petitioners assail the order dated 1/12/1994 of the learned AddI. Chief Judicial Magistrate-cum-Special Judge, Cuttack taking cognizance of the offence under Section 211 of the Companies Act and issuing process.

(2.) The petitioners are, the National Aluminium Company Limited, a Government of India undertaking, its Chairman-cum-Managing Director, the Company Secretary and the present Chairman-cum-Managing Director.

(3.) The order of cognizance is challenged mainly on the ground of lack of sanction against the petitioners, the Managing Director-cum-Chairman and the Company Secretary and on the ground of Limitation. Sri I. Mohanty, learned counsel for the petitioners submitted that the petitioners 2 and 4 having been appointed by the President of India initially as Directors and then, Chairmancum-Managing Director, initiation of a criminal proceeding as against them without prior sanction of the appropriate authority as required under Section 197 of the Cr. P.C. is illegal and liable to be quashed. Submission is made that in view of Section 21 of the I.P.C., these officers being public servants, for their prosecution sanction under Section 197, Cr. P.C. was the basic requirement, which having not been complied with, the order of cognizance is bad and liable to be set aside.