IN THE HIGH COURT OF JUDICATURE AT PATNA

Or. Criminal Miscellaneous No.1 of 2005

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THE OFFICIAL LIQUIDATORM/S GANGA VANASPATI LTD.

... ... Petitioner/s

Versus

OM PRAKASH CHIRANIA and ORS

... ... Opposite Party/s

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Appearance :

For the Petitioner/s

:

Mr. Muktar Singhoffi.Liquid., Adv.

For the Opposite Party/s :

Mr. Mukesh Kant, Adv.

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CORAM: HONOURABLE MR. JUSTICE SANJEEV PRAKASH

SHARMA

ORAL ORDER

61

19-01-2023

1. This is an application filed to take up criminal

proceedings against the accused for having violated the

provisions of Section 454 (5) of the Companies Act and having

not submitted statement of affairs within the requisite time

period as laid down therein. The accused respondents were the

Directors and the officers who were lastly posted on the Board

of Directors of the company liquidation which was engaged in

manufacturing of hydrogenated vegetable oil.

2. The company had been ordered to be winded-up

by this Court vide its order dated 7^th April 1995, in terms of the

opinion of B.I.F.R., under Section 20(1) of the Sick Industrial

Companies Act, 1985. The O.L. was appointed as liquidator of

the company with effect from 24.04.1995. It is stated by the

learned O.L. that the accused were obliged to submit statement

Patna High Court OR. CR. MISC No.1 of 2005(61) dt.19-01-2023

2/3

of affairs within the time limit prescribed i.e. 21 days in terms of

Section 454 (3) of the Act of 1956 but, in spite of the time

having expired, none of the Board of Directors namely, the

respondent accused submitted their statement of affairs nor the

same were filed within the extended period as prescribed. No

reasonable grounds have come forward for not having submitted

the statement of affairs within the time prescribed and therefore,

they deserve to be punished in terms of the said provisions.

3. This Court had taken cognizance of the offence

against the accused persons. Later on vide order dated

10.03.2006 discharged accused no. 4. As far as accused no. 1

Om Prakash Chirania is concerned , he expired on 8^th

September 2022 and was therefore, discharged and similarly

proceedings were closed on 17/11/22 as against Dev Prakash

Rungta who also expired. As regards accused no. 2 is

concerned, all possible steps were taken to secure his presence

before this Court but for years together he has remained

absconding and there is no information about his whereabouts.

The police authority have not been able to search out and

standing warrant has already been issued against him.

4. The company was wound up in terms of the

directions of the B.I.F.R. which found that the affairs of the

Patna High Court OR. CR. MISC No.1 of 2005(61) dt.19-01-2023

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company were not possible to be continued. In view that it had

become sick and was not in a position to pay out its debts

liabilities. Since, the order was passed in compliance of

directions of the B.I.F.R. which was having the entire details of

the statement and affairs of the company, non submission of

statement of affairs subsequently in terms of 454 (3) ought not

be treated and considered as a ground to initiate criminal

proceedings against Directors as, it would be reasonable for

them to take an excuse that the said entire details were lying

with B.I.F.R.

5. Keeping in view thereto, the proceedings initiated

by this Court under 454 (5) of the Companies Act, 1956 are

found to be unnecessary exercise in futility and accordingly, this

Court deems it appropriate to close the proceedings under 454

as against the accused are dropped. Standing warrants issued as

against accused no. 2 is also dropped and criminal prosecution

is closed. The Proceedings are consigned to record.

Suraj/-

Item No. 90

(Sanjeev Prakash Sharma, J)

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