MA SI MUTHUVEERAN CHETTIAR Vs. MOTTAYAN CHETTIAR

JUDGEMENT

(1.) This is an application by the accused in C.C. No. 19 of 1941, on the file of the Sub-Divisional Magistrate of Musiri to quash the proceedings against them.

(2.) The offence with which they have been charged is under Section 4 (5) of the Indian Companies Act, with being members of an association formed in contravention of Section 4 (2), which requires that no company of more than 20 persons shall be formed unless it is registered. It is admitted that the company was formed in 1922-1923, at a time when Sub-sections (1) and (2) to Section 4 had been enacted, but not Sub-sections (3) to (5), which were enacted only in 1936. Mr. V. T. Rangaswami Aiyangar for the petitioners has raised three contentious. The first is that the Sub-Divisional Magistrate was wrong in holding that he could not drop proceedings when once he had initiated them. The second is that Section 4 (5), which was enacted in 1936, has no retrospective effect and cannot affect the petitioners who formed their association in 1922 or 1923. The third is that the complainant in this case has no locus standi to file a complaint and that the Sub-Divisional Magistrate was therefore wrong in taking cognizance of this case on such a complaint.

(3.) I have not been able to find any legal objection to the proceedings being dropped by the Sub-Divisional Magistrate if he " finds that he ought not to have taken cognizance of this offence.