IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 25.04.2022

CORAM

THE HONOURABLE MR.JUSTICE M.NIRMAL KUMAR

ORDERS RESERVED ON

08.04.2022

ORDERS PRONOUNCED ON

25.04.2022

CRL.O.P.NOS.16025 AND 11345 OF 2018

&

CRL.MP.NOS.8221 AND 8145 OF 2018

1. Vikram Kapur,

Tamil Nadu Urban Infrastructure

Financial Services,

112, Thiyagaraya Road, T.Nagar,

Chennai – 600 017.

2. Ambuj Sharma

3. Kandasamy Shanmugam

4. Mangat Ram Sharma

5. MD.Nasimuddin

6. Ramachandran Thanalapathy

Krishnamoorthy,

7. Subramanian Meyyappan

8. Govindasamy Ravikumar

9. Meenakshi Sundaram Krishnan Malathi

... Petitioners

in Crl.O.P.No.16025/2018

M/s.State Industries Promotion

Corporation of Tamil Nadu Ltd.,

19-A, Marshalls Road,

Egmore, Chennai – 600 009.

... Petitioner

in Crl.O.P.No.11345/2018

Vs.

The Deputy Registrar of Companies, Tamil Nadu

Having Office at Shastri Bhavan,

26, Haddows Road,

Chennai – 600 006.

... Respondent/

Complainant in both Crl.O.Ps

https://hcservices.ecourts.gov.in/hcservices/

Common Prayer : Criminal Original Petitions filed under Section

482 of Criminal Procedure Code

i) to call for the records in EOCC.No.68/2018 on the file of the

Additional Chief Metropolitan Magistrate [E.O.1], Egmore at

Allikulam

Complex,

Chennai-3

and

quash

the

same.

(Crl.O.P.No.16025 of 2018)

ii) to call for the records pertaining to the summons issued by

the Additional Chief Metropolitan Magistrate in EOCC No.68/2018

dated 14.03.2018 quash the same (Crl.O.P.No.11345 of 2018)

For Petitioners

in both Crl.O.Ps

: Mr.N.R.Elango

Senior Counsel

for Mr.Ramesh Venkatachalapathy

For Respondent

in both Crl.O.Ps

: Dr.D.Simon

Central Government Standing Counsel

COMMON ORDER

Crl.O.P.No.16025 of 2018 is filed by A2 to A10 and

Crl.O.P.No.11345 of 2018 is filed by A1, who are facing trial in

EOCC.No.68 of 2018 for the offence under Section 148(6) r/w. 148

(8) ;of the Companies Act, 2013, pending on the file of the

learned Additional Chief Metropolitan Magistrate [E.O.1], Egmore

at Allikulam Complex, Chennai-3 and to quash the same.

2.The gist of the complaint is that the A1/Company is a

wholly owned Tamil Nadu Government Company registered and

incorporated under the Companies Act. The Company was formed by

the Government of Tamil Nadu for development and promotion of

industries in the State. The petitioners/A2 to A10 are the

nominee Directors of A1 Company. The respondent, Registrar of

Companies found A1/Company falls under the ambit of Cost Audit,

not filed the Cost Audit Report for the financial year 2013-14,

even beyond the last date of submission which is contravention

of sub-section (6) of Section 148 of the Companies Act, 2013

[hereinafter referred to as “the Act”]. As per Section 148(6),

a Company shall within thirty days from the date of receipt of a

copy of the cost audit report prepared in pursuance of a

direction under sub-section (2) furnish Central Government with

such report along with full information and explanation on every

reservation or qualification contained therein and as per sub-

section (8), if any default is made in complying with the

provisions of this section, the Company and every Officer of the

Company who is in default shall be punishable in the manner as

https://hcservices.ecourts.gov.in/hcservices/

provided. Since the accused have not complied with the

provisions, prosecution launched.

3.The contention of the petitioners is that the Companies

Act, 2013 was enacted with effect from 29.08.2013, however,

under Section 1(3) of the said Act, different provisions will be

notified on different dates. Section 148 of the Act was

notified with effect from 01.04.2014, as per the provision, the

audit shall be conducted by a Cost Accountant in practice who

shall be appointed by the Board. The meeting of the Board of

Directors of SIPCOT was convened on 28.06.2016, in Chennai. In

that meeting, the Board noted that

(i)As per the Compan