(1.) THIS is an appeal by the State from the judgment of the City Magistrate, Jaipur, dated the 10th of December, 1959, acquitting the accused persons of an offence under Section 220 of the Companies Act, 1956 (hereinafter referred to as the Act ).
(2.) MESSRS. Tonk Calico Printers (Private) Limited was registered as a private company on the 29th of September, 1956 and the other two accused Mehtabchand golchha and Harinarain Rathi were its Directors. The Company failed to file copies of its balance-sheet and profit and loss account with the Registrar of Companies. The plea of the accused was that as the business of the Company was not commenced and its capital was not raised, there was no necessity of submitting the documents. It was argued in the trial Court that as no annual general meeting was held, the question of filing the documents did not arise and the same argument has been advanced before us.
(3.) THE trial Magistrate held that the provisions of Section 220 were controlled by section 166 of the Act and that as no general meeting was held, the Company or its directors did not incur any liability for non-submission of the balance-sheet etc. to the Registrar. This is why he passed an order of acquittal as mentioned above.