PADMINI JESUDURAI J.

This appeal against the acquittal is filed by the Assistant Registrar of Companies, Madras 6, challenging the acquittal, of the respondents, tried by the Additional Chief Metropolitan Magistrate-Economic Offences-II, Egmore, Madras, in C. C. No. 126 of 1985, for an offence under section 372(2) and (4) read with section 374 of the Companies Act, 1956. The appellant filed the complaint against the respondents for the above offence on the allegation that they were the directors of Investment Trust of India Limited (hereinafter referred to as "the company") at the relevant time and an inspection by the Deputy Director (Inspection) attached to the office of the Regional Director, Company Law Board, Madras, made under section 209A of the Companies Act (hereinafter referred to as "the Act") revealed that, during the financial years 1980, 1981 and 1982, the investments made by the company in the shares of other bodies corporate, was in excess of the 30 per cent. limit prescribed under section 372(2) and the approval of the Central Government and the required resolution under section 372(4) of the Act had not been obtained. After issue of show-cause notices,