RAJINDER GUPTA Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) THE present is a petition under Section 482 Cr.P.C. for quashment of the complaint dated 12.11.1988, under Section 374 of the Companies Act (Annexure P-1), order dated 24.9.1999 pased by Chief Judicial Magistrate, Sangrur (Annexure P-2) alongwith all subsequent proceedings.

(2.) SOME facts can be noticed in the following manner. A criminal complaint was lodged in the Court of Chief Judicial Magistrate, Sangrur by the Registrar of Companies, against Shri Rajinder Gupta and his co-accused Shri C.S. Dhawan, on the allegations that they have allegedly violated the provisions of Section 372(2) of the Companies Act. M/s Varinder Agro Chemicals Ltd. was incorporated on 8.6.1979 as a Public Limited Company under the Companies Act, 1956. It is alleged by the complainant that is head office is at Barnala, District Sangrur. The authorised share capital of the Company is Rs. 20 crore and paid up capital is Rs. 17,11,40,407/-. Petitioner No. 1 is Managing Director and petitioner No. 2 is the Joint Managing Director of the Company. It is further alleged that M/s Varinder Agro Chemicals Ltd. (hereinafter called the Company) made investment of Rs. 12,07,41,250/- in M/s Abhishek Spinfed Corporation Limited making the invested company a subsidiary without obtaining the prior approval of the central Govt. as required under Section 372(4) of the Companies Act and thereby contravened those provisions. The Company was ordered to be prosecuted for that violation.

(3.) IN this manner, the present petition under Section 482 Cr.P.C. has been filed by the petitioner.