HINDUSTAN DEVELOPMENT Vs. KUSHAN CHAND BADER

JUDGEMENT

(1.) THIS is a petition under Section 482 of the Criminal Procedure Code, 1973, challenging the order dated July 29, 1995, whereby the learned Magistrate refused to cancel his earlier order dated September 16, 1994, taking cognizance of the offence under Section 113(2) of the Companies Act, 1956 ('the Act'), against the petitioners on the complaint of Kushal Chand Bader, respondent No. 1.

(2.) PETITIONER No. 1, Hindustan Development Corporation Ltd., is a company incorporated under the Act with its registered office at Modi Building, 27, Sir. R.N. Mukherjee Road, Calcutta. Petitioner Nos. 2 to 6 are its chairman, managing director, directors and secretary, etc. Petitioner No. 7, A, B, C. Consultants Pvt. Ltd., N.C.E. Buildings, Jadav Pur, Calcutta, is petitioner No. 1's registrar and share transfer agent rendering services to the shareholders of the company on behalf of petitioner No. 1.

(3.) AROUND December, 1991, to January, 1992, the petitioner company offered for subscription 61,25,174 - -14 per cent, secured redeemable partly convertible debentures (series IX) of Rs. 150 each for cash at par on a rights basis to its equity shareholders and employees. 1,38,86,500 similar debentures aggregating to Rs. 208.30 crores for cash at par were also offered for purchase to resident Indian public and employees of the company through a public issue. The issue price of Rs. 150 of these debentures was payable in the following manner :