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1970 (2) TMI 70 - SC - Companies LawWhether once a mode of payment of dividend is agreed to, namely, by posting a cheque or a warrant, the place where such posting is to be done is the place of performance and also the place of payment, as such performance in the manner agreed to is equivalent to payment and results in the discharge of the obligation? Held that:- The offence under section 207 is the failure to pay dividend or to post a cheque or a warrant for the dividend amount. Since the obligation to post the warrant arose at the registered office of the company, failure to discharge that obligation also arose at the registered office of the company. Therefore, the alleged offence must be held to have taken place at the place where the company's registered office is situate and not where the dividend warrant, when posted, would be received. In that view, the High Court was in error in holding that the Magistrate at Meerut had jurisdiction to try the said complaints. The appeals must accordingly be allowed and the High Court's orders set aside. Appeal allowed.
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