2000 (2) TMI 720

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... for the petitioners. Mr. V.S. Raju, is that the petitioners are merely the directors of the company which has been shown as A-1 and that in view of the definition of the 'Officer who is in default' as given in section 5 of the Act, where there is a managing director or a whole time director or a manager or a secretary the liability for any criminal offence attributed to the company cannot be assigned to ordinary directors. 3. This is countered by the learned counsel for the respondents. Shri P.V.S.S.S. Rama Rao, and it is urged that even where a company has a managing director or a whole time director or a manager or a secretary, the question whether other directors are liable or not would depend on the facts and circumstances of the case....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....piry of 8th day also imprisonment with a term which may extend to one year. Similarly, section 113(2) provides that in the case of contravention of the provisions of section 113(1) the company and every officer of the company 'who is in default' shall be punishable with fine which may extend to Rs. 500 per every day during which the default continues. 7. Thus, the basis of fastening of liability on the officers of the company for contravention of sections 73(2A) and 113(2) is that the officer who is sought to be made liable should satisfy the definition of 'Officer in default'. The phrase 'Officer in default' has been defined in section 5 which is extracted below : "5. Meaning of 'Officer who is in default'-For the purpose of any provisio....