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2022 (6) TMI 316 - HC - Companies LawViolation of principles of natural justice - Validity of prosecution proceedings - service of SCN - Case of petitioners is that, prior to launching the criminal prosecution, no show cause notice was given to the petitioners - HELD THAT:- Initiation of criminal proceedings without giving show cause notice is against the principles of natural justice. There is no mentioning in the complaint about issuance of show cause notice. There is also no proof filed to show issuance of show cause notice and its service on the petitioners. If show cause notice had been given, petitioners would have got the opportunity for rectifying their defects. When that opportunity is not given, criminal prosecution is liable to be quashed. There is no specific averment made in the complaint as to whether the Directors are responsible for the offences alleged to have committed by the Company. No speaking order was passed by the Additional Chief Metropolitan Magistrate at the time of taking cognizance of the cases. A reading of the complaint in these cases shows that it was specifically mentioned that show cause notice was issued on 13.08.2018/28.11.2017. In the list of documents, show cause notice is shown as document relied by the prosecution. It is true that the proof for service of the show cause notice on the petitioners is not produced. However, it is for the respondent during the trial to prove the service/non-service of the show cause notice. When there is clear averments made in the complaint that the show cause notice was issued on 13.08.2018/28.11.2017, the contention of the learned counsel for the petitioners that no show cause notice was issued to the petitioners cannot be accepted. The offences alleged against the petitioners are statutory violations for non complying certain mandatory provisions. This Court can gather from the records summoned that the Additional Chief Metropolitan Magistrate had taken cognizance of the cases only after going through the complaint allegations and materials filed in support of the complaint allegations. These petitions have been filed only to protract the proceedings and deserve to be dismissed - Petition dismissed.
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