S C BHATIA Vs. P C WADHAWA

JUDGEMENT

(1.) SHRI S. C. Bhatia, director, Indana Spices and Food Industries Ltd., 72, Janpath, New Delhi, has filed this petition under Section 482 of the Criminal Procedure Code, for quashing complaint annexure 'P -7', summoning order annexure 'P -8' and the proceedings arising therefrom pending in the court of Shri T. R. Bansal, Judicial Magistrate, Ist Class, Chandigarh. The brief facts of the case relevant for the disposal of this petition are that P. C. Wadhawa, respondent, filed a complaint under Section 73 of the Companies Act, 1956, against the petitioner alleging that Indana Spices and Food Industries Limited floated debentures in August, 1991. He applied for 40 debentures of the company and issued cheque for a sum of Rs. 3,000 bearing No. 569179, dated August 9, 1991, on Haryana State Co -operative Apex Bank Limited, Sector 28 -D, Chandigarh, for the purchase of the debentures. The application form and cheque were deposited with the Canara Bank. Debentures were, however, not allotted to him within the stipulated period, On non -allotment of debentures, the company was required to refund the amount of Rs. 3,000 within eight days of the expiry of a period of 10 weeks from the date of closure of the issue, but the company illegally withheld and used the amount of Rs. 3,000 for its own gain. The amount was refunded by Shri S. C. Bhatia, vide cheque which was received on April 10, 1992, but was presented to the bank on April 14, April 11 and 13 being holidays. The amount was illegally retained by the company for a period of five and a half months after the lapse of the statutory period of 10 weeks plus eight days and no interest was paid for this period in spite of various letters written to the company. The director of the company violated the provisions of Sub -section (2A) of Section 73 of the Companies Act, 1956, and was liable for action under Sub -section (2B) of that section.

(2.) AFTER hearing counsel for the complainant and going through the record, the Chief Judicial Magistrate, Chandigarh, summoned the present petitioner to stand trial for an offence under Section 73 of the Companies Act.

(3.) NO return was filed by the respondent.