Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2008 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (4) TMI 502 - HIGH COURT OF ALLAHABADWinding up - petition filed under section 446 of the Companies Act, 1956 read with Rule 9 of the Companies (Court) Rules, 1959 for the quashing of all Civil and Criminal proceedings pending in various Courts and absolving the petitioner from any civil or criminal liability in connection with the affairs of the Company, namely, Moulik Finance and Resorts Limited Held that:- Reserve Bank of India had the power, jurisdiction and authority to file a criminal complaint against the alleged default/contravention made by the Company and its Directors. The submission of the counsel for the petitioner that the initiation of the criminal proceedings was wholly illegal and without any jurisdiction is wholly erroneous. No petition can be filed under section 446 of the Companies Act. Section 446 is only an enabling provision and an interlocutory application could only be filed in a pending matter before the Court seeking leave of the Court to file a suit or other legal proceedings against the Company. If any suit or proceedings is required to be instituted or to be continued with, then leave of the Court is necessary. Section 446 of the Companies Act however does not prohibit taking actions against the Directors and officers or servants of the Company. This provision cannot be invoked for the quashing of the criminal complaint. In view of the aforesaid, this Court is of the opinion that the proceedings initiated by the petitioner under section 446 read with section 633(2) of the Companies Act was not maintainable. Even otherwise, on merit the petitioners are not entitled for any relief whatsoever.
|