- (1.)This company petition has been filed under Section 633(2) of the Companies Act, 1956, in which it has been prayed that the petitioner may be relieved from his liability in the matter of non-compliance with the requirements of sections 210 and 220 of the Companies Act and the respondent, Registrar of Companies, may be directed not to initiate criminal proceedings against the petitioner or the company in the matter.
(2.)A reply to this petition has been filed by Shri U. D. Sharma, learned counsel for the Registrar of Companies.
(3.)It is submitted by Shri Kuhad, learned counsel, that the industry was declared to be a sick industry within the provisions of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (for brevity "the Act, 1985"). It is submitted that the company was declared to be sick, vide order dated October 3, 1989 (annexure 1), and the company was closed from April, 1987. It is further submitted that the final order of the Board for Industrial and Financial Reconstruction to wind up the company was passed on June 14, 1990 (annexure 2). An appeal under Section 25 of the Act mentioned above was filed and has been admitted on December 7, 1990 (annexure 5). An order staying the operation of order, annexure 2, was also passed on the same day, which is still under operation. It is submitted that the appellate authority, where the appeal is pending, directed the petitioner-company to prepare the accounts and police help was also given to enable the personnel of the company to enter the factory premises. However, in spite of police help as mentioned in para 9 of the petition, they were not able to enter the premises for preparation of the accounts, etc. It is submitted that in these circumstances, the petitioner-company is not able to do so from 1989 onwards. It is, therefore, prayed that a suitable order regarding this may be given to enable the company to prepare the accounts and records for filing before the Registrar of Companies. It is submitted by learned counsel that, in these circumstances, it is apprehended that the managing director of the company and other directors might be prosecuted under sections 210 and 220 of the Companies Act, 1956.