- (1.)THIS is an appeal by the complainant against the appellate order of the Sessions Judge of Saharanpur, whereby he allowed the appeal of the respondents, who were sentenced by the Magistrate to pay a fine of Rs. 250 each under Section 629-A of the Companies Act, hereinafter called the Act.
(2.)FOR proper appreciation of the points involved in the case it would be necessary to consider certain provisions of the Act, as amended by Act 65 of 1960. The material portions of Section 263 of the Act are in the following terms :
"263 (1) :--At a general meeting of a public company or of a private company which is a subsidiary of a public company, a motion shall not be made for the appointment of two or more persons as directors or the company by a single resolution unless a resolution that it shall be so made has first been agreed to by the meeting without any vote being given against it. 2. :--A resolution moved in contravention of Sub-section (1) shall be void whether or not objection was taken at the time to its being so moved. "

(3.)SECTION 629-A is a residuary provision for punishment for breach of the provisions of the Act, where no specific remedy is available in other sections thereof. The material words of this Section are :
"if a company or any other person contravenes any provision of this Act for which no punishment is provided elsewhere in this Act. . . . . the company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to five hundred rupees, and where the contravention is a continuing one, with a further fine which may extend to fifty rupees for every day after the first during which the contravention continues. "