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2008 (1) TMI 607 - HIGH COURT OF GUJARATPower of courts to grant relief - show cause notices - petitioners have sought excuse in respect of any offence, if committed, by the petitioners, by invoking the provisions contained in section 633(2) of the Companies Act Held that:- Ad interim relief granted earlier directing the Registrar of Companies to stay his hands is required to be confirmed till the final disposal of these petitions. Looking to the nature of offences alleged against the petitioners and explanation tendered by them in their replies, the Court is of the prima facie view that the petitioners have taken all due care and caution in complying with the provisions of the Act and even if there may be minor lapses, those are required to be condoned. For such minor lapses and defaults of technical nature to prosecute the Company’s highest ranking Officers is not just and proper. To prosecute a person is of a serious consequence. If there is no basic foundation, the person cannot be compelled to pass through the gamut of such turmoils. If at the initial stage, the Court is prima facie satisfied that the prosecution may not ultimately sustain, the Court would certainly show its indulgence so as to meet with the ends of justice or to prevent the abuse of the process of law. The Court, therefore, restrains the Registrar of Companies from launching prosecution for the alleged offences and further restrains him from proceeding further pursuant to the impugned notices challenged in all these petitions. The Court is of the view that all the three essential ingredients which the Court should take into consideration while granting interim relief i.e., prima facie case, balance of convenience and irreparable loss or injury are present in this case and hence, such relief cannot be denied to the petitioners.
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