K K SUBBIER Vs. KMSLAKSHMANA AIYAR

JUDGEMENT

(1.) A sabha of the Sourashtra community was registered as a society. In contravention of the provisions of Section 86 (d) of the Companies Act, the directors sanctioned a loan to the second accused--who was a director--for a period of one year., Before that year had terminated, the present complainant, who is one of the directors, moved his fellow-directors to cancel the earlier resolution. They refused to do this and resolved that as the year for which the loan was made had not then elapsed, they would not interfere. The complainant thereupon filed a complaint in the Court of the City First Class Magistrate of Madura under Section 86 (3) of the Companies Act against the present directory, who were parties to the second resolution. The Magistrate summoned witnesses, but before he had taken their evidence he acquitted all the accused on a reading of the complaint; for he was of opinion that no offence had been committed by the present directors in passing the second resolution. The offence was committed when the loan was made as a result of the resolution passed in 1939 and the persons who were guilty of the offence were those who were parties to the first resolution.

(2.) The complainant approached the Sessions Judge who has referred the matter to this Court, expressing the opinion that the second accused was guilty of abetting the offence by receiving the loan himself.

(3.) The complainant has also filed a revision petition in this Court against the acquittal of the first accused, who is said to have been a party to the first resolution.