IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated 04.01.2022

CORAM:

THE HONOURABLE MR.JUSTICE N. SATHISH KUMAR

Crl. O.P. No. 24814 of 2017 and

Crl.M.P.Nos. 14329 and 14330 of 2017

Deva Jaya Thanga Thambi

Direcotr of M/s.Shapre Infotech (India) Limited

#1, Kannu Garden, New Washermenpet

Arunasala Eswarar Koil Street

Chennai - 600 081

...Petitioner

Versus

The Deputy Registrar of Companies,

Tamil Nadu,

Shastri Bhavan II Floor, Block V & VI,

26, Haddows Road, Nungambakkam,

Chennai-600006

...Respondent

PRAYER : Criminal Original Petition filed under Section 482

Cr.P.C., to call for the records in E.O.C.C.No.197 of 2017,

under Section 448 of the Companies Act, 2013, on the file of the

Additional Chief Metropolitan Magistrate [Economic Offence I],

Egmore, Chennai and quash the same.

For Petitioner

: Mr.P.Vasanth

For Respondent

: Dr.D.Simon

Central Govt. Standing Counsel

ORDER

This Criminal Original Petition is heard through Video-

Conferencing, on account of the COVID-19 pandemic situation.

2. This Criminal Original Petition has been filed to

quash the proceedings in E.O.C.C.No.197 of 2017, filed against

the accused for the offence under Section 448 of the Companies

Act, 2013, on the file of the learned Additional Chief

Metropolitan Magistrate [Economic Offence I], Egmore, Chennai.

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

3. The crux of the complaint is that the petitioner

company was inspected by the Inspecting Officer. The Inspecting

Officer has observed that in the profit and loss account for the

year ended 31.03.2011, it was shown that a sum of

Rs.27,85,20,027/- (Rupees Twenty Seven Crore Eighty Five Lakh

Twenty Thousand and Twenty Seven Only) has been written off as

bad debts. As complete details of transactions and break up

details of parties/debtors have been called for by the Officer

In-charge and the reply notice was not satisfied, the

prosecution has been initiated for the offence under Section 448

of the Companies Act.

4. The main contention of the learned counsel appearing

for the petitioner is that the entire prosecution is nothing but

an abuse of process of law and there is no details containing

the entire complaint as to the nature of suppression of

material facts to attract the offence either under Section 447

or 448 of the Companies Act. It is his further contention that

the bad debts was shown in the accounts right from the year

2003, which was not even taken note of by the respondent. It is

his further contention that the Registrar of Companies is also

aware of the fact that the accounts of the company from the year

2003 reflected as the bad debts. Therefore, the contention of

the respondent that as if such bad debts was shown only in the

year 2011 is not proper. At any event, it is his contention that

the entire complaint is bereft of details, false statements or

materials facts and hence submitted that the entire complaint

even taken as a proof, will not constitute any offence against

the petitioner. Hence, the petitioner prayed for quashment of

the proceedings.

5. The learned counsel appearing for the respondent filed

a counter indicating that reply to the show case notice issued

by the petitioner, is not satisfied. Therefore, the complaint

has been filed. The Inspecting Officer has observed that in the

profit and loss account for the year ended 31.03.2011, a sum of

Rs.27,85,20,027/- (Rupees Twenty Seven Crore Eighty Five Lakh

Twenty Thousand and Twenty Seven Only) shown as bad debts, was

written off. They were asked to give a reply to the following

points:

i. Details of all legal cases undertaken

against the parties whose amount were written off is

more than Rs.10 Lakhs.

ii. A full list of case with name and full

addresses where amount written off is more than

Rs.10 Lakhs.

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