Filling of prosecution for violating of section 159/220 of the Companies Act, 1956. - Companies Law - 02/2009

General Circular No. 02/2009 No. 17/97/2099-CL-V Government of India Ministry of Corporate Affairs 5 th Floor A wing, Shastri Bhawan Dr. R.P. Road, New Delhi-110001, Dated the 20 th June, 2009 To All Regional Directors All Registrar of Companies Subjects: Filling of prosecution for violating of section 159/220 of the Companies Act, 1956. It has come to the notice of the Ministry that while deciding the criminal cases filed for violations of Provisions of Section 159 and 220 of the Act 1956, the accused are normally acquitted, discharged by the Courts after imposing penalty as laid down under the Provisions of the Companies Act, 1956. Section 614A (1) of the Companies Act, 1956 empowers the Court trying offences under the Act to direct the accused for filling of documents with the Registrar within a specific time on payment of a fee including the additional fee as required to, be paid under section 611(2) of the Companies Act, 1956. If such order is passed, it is open for the Registrar of Companies to initiate action against the accused under section 614A(2) of the Companies Act, 1956. In view of the above, all Registrar of the Companies are requested to make a prayer before the Hon ble Court to pass an order under section 614A(1) of the Act, while deciding the cases for violations Provisions of Section 159 / 220 of the Companies Act, 1956 so that action as contemplated under penal provisions of section 614A(2) of the Companies Act, 1956 could be taken against the accused directors of the companies. (Diwan Chand) Director (Inspection Investigation)