BHARGAVA, J. —Petitioner Totalal, who at the relevant time, was a Director of the Edward Mills Co. Ltd., Beawar (hereinafter called the Mills) incorporated and registered as a public limited company under the provisions of the Indian Companies Act, 1882 on 9th August, 1906, has been sentenced to pay a fine of Rs. 500/- for an offence punishable under Sec. 295 (4) of the Indian Companies Act, 1956; in default of payment of fine, he is to undergo simple imprisonment for two months. Along with the petitioner, three other Directors, namely, Chandmal, Rishi Kesh and Lalita Parsad, were also convicted for the same offence, but no revision application has been filed on their behalf.

2. Sec. 295 of the Indian Companies Act 1956 runs thus:—

Sec. 295. Loans to Directors etc. (1) Save as otherwise provided in sub-sec. (2) no company (hereinafter in this sec referred to as the lending company) shall, without obtaining the previous approval of the Central Government in that behalf, make any loan to, or give any guarantee or provide any security in connection with a loan made by any other person to, or any other person by,

(a) any director of the lending company which is its holding company or any

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