- (1.)This is an appeal by a complainant against the appellate order of acquittal passed by the learned Sessions Judge of Saharanpur in a case which was started by Raghunath Swarup Mathur complainant against Har Swarup Mathur Respondent for the alleged contravention of Section 269(2) of the Companies Act.
(2.)Ai Saharanpur there is a company known as the Cooperative Company Limited (Distillers) Saharanpur. All the shares of the Company are held by the family of the parties who are brothers. It is admitted that Har Swarup Mathur was the managing director of the Company before the commencement of the Companies (Amendment) Act, 1960. It is also admitted that he was re-appointed as the managing director of the Company by a resolution of the general body of share holders on 30-9-1961 and began functioning as such. The complaint was that since the approval of the Central Government was necessary Under Section 269(2) of the Companies Act before the re-appointment could take effect and the approval had not been received, Har Swarup Mathur committed a breach of the said section by acting as a managing director of the Company.
(3.)The learned Magistrate who tried the case found the accused guilty Under Section 269(2) of the Companies Act and sentenced him to a fine of Rs. 500 and also to a recurring fine of Rs. 25 per day for every day the contravention continued after the passing of the order. In default of payment of fine the accused was directed to undergo simple imprisonment for a period of one month. It was also provided in the order of the Magistrate that the complainant would receive Rs. 100 as reward including cost of litigation out of the fine, if realised. On appeal by the accused his conviction and sentence were set aside by the learned Sessions Judge and he was acquitted. The complainant has now preferred an appeal to this Court.