IS

ANNEXED

AS

ANNEXURE-A

AND

CONSEQUENTLY THIS HONOURABLE COURT MAY KINDLY BE

PLEASED TO SET ASIDE THE ORDER DATED 11.04.2019 TAKING

COGNIZANCE OF THE OFFENCE IN THE COMPLAINT FILED BY

THE

RESPONDENT

REGISTRAR

OF

COMPANIES

IN

C.C.NO.135/2019

PENDING

BEFORE

THE

HONOURABLE

SPECIAL COURT OF ECONOMIC OFFENCES, BENGALURU.

THIS CRIMINAL PETITION HAVING BEEN HEARD AND

RESERVED FOR ORDERS ON 21.03.2022 THIS DAY, THE COURT

PRONOUNCED THE FOLLOWING:

ORDER

This petition filed by the petitioner-accused Nos.1

and 2 under Section 482 of Cr.P.C. for quashing the

criminal proceedings and taking cognizance against the

petitioner in C.C.No.135/2019 pending on the file of

Special Court of Economic Offences, Bengaluru for the

offences punishable under Sections 182(3) and (4) of the

Companies Act, 2013.

2.

Heard the learned counsel for the petitioner

and learned Standing counsel for the respondent.

3.

The case of the prosecution before the trial

Court is that a complaint under Section 200 of Cr.P.C. filed

against the petitioner for the violation of Sub Section (3)

3

read with Sub Section (4) of Section 182 of the Companies

Act alleging that the accused-company M/s. Indian Designs

Exports Private Limited (hereinafter referred to as 'the

company') was registered under the Companies Act, 1956

in the State of Karnataka on 26.09.1995 under the name

"New Age Apparels Private Limited", subsequently the

name of the company was changed to "Indian Designs

Exports Private Limited" from 05.11.2009. The accused

No.1 is the company and accused No.2 is the Managing

Director of the company and as per Section 182 of the

Companies Act, 2013 amended pursuant to the Finance

Act, 2017, every company shall disclose in its profit and

loss account about the contribution by it under Section 182

of the Companies Act and it was observed that there was

political contribution/donation to the tune of Rs.10.00

lakhs each in two occasion to a particular party during a

financial year 2016-17, but, the company has failed to

disclose the political contribution in its profit and loss

account, thereby, violated the provisions of sub-section (3)

of Section 182 of Companies Act. A notice was also issued

4

by calling the explanation and explanation also offered by

the petitioner as they declared the donation in the head of

other expenses under the sub-heading 'Donation'. The said

company has made contribution in contravention of

Section 182(4) of Companies Act. Therefore, the complaint

was lodged for taking cognizance against the company.

After taking cognizance by the Magistrate, the same was

challenged by the petitioner before the Sessions Judge by

filing Crl.R.P.No.447/2019 which came to be dismissed.

Hence, the petitioner is before this Court.

4.

Learned

counsel

for

the

petitioner

has

contended that the petitioner-company has very much

disclosed in its profit and loss account about the political

contribution in the name of donations and there is no

prescribed column in the format. It has very much

disclosed the contribution to the Income Tax Authorities

and claimed the exemption. Even otherwise, the petitioner

gave explanation as to when the notice was issued to the

respondent, in spite of it, a false complaint has been filed

5

against the petitioner is nothing but abuse of process of

law and hence,

prayed

for

quashing

the criminal

proceedings.

5.

In support of his contention, he has also relied

upon the reportable judgment of the Co-ordinate Bench of

this Court in the case of IBC Knowledge Park Pvt. Ltd.

and others vs. Union of India and another in

Crl.P.No.6628/2019 dated 24.01.2020.

6.

Per contra, the Standing counsel appearing for

the respondent has seriously objected the petition by filing

written statement of objections and contended that the

petitioner who is the company shall have to declare the

political donations under Section 182 of the Companies

Act. Merely declaring the donation in the name of donation

to the income tax returns is not enough. The petitioner is

requir