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TMI Blog2020 (2) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... ropolitan Magistrate, Economic Offence, Egmore, Chennai. The learned Magistrate took cognizance of the complaint in E.O.C.C.No.262 of 1997 and issued summons to the respondents/accused therein. The petitioners have been arrayed as A1 and A7 in the complaint. Challenging the summons issued by the learned Magistrate, the 1st petitioner- company has filed a petition before this Court under Section 482 Cr.P.C. in Crl.O.P.No.17646 of 1997. This Court after hearing both sides, dismissed the petition observing that the subject matter to be dealt with by the trial Court. Challenging the said order, the 1st petitioner-Company has filed Special Leave Petitions in Criminal Appeal Nos.900 and 901 of 2003, and the Hon'ble Supreme Court by an order d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the said amendment, the 1st petitioner-Company applied to the Reserve Bank of India and the 1st petitioner was granted registration as a Non-Deposit taking Non-Banking Finance Company under Certificate of Registration No.07.00213. Therefore, the advertisement published by the petitioner Company was in fact an advertisement for deposits, which was not even within the provisions of Section 58-A and which would not apply to the petitioner Company being a non-banking financial company as per Section 45-I(c) of the Act. Therefore, the Registrar of Companies has no authority to issue the summons. The learned Magistrate also failed to consider the legal provisions and framed the charges without considering the materials placed by the 1st petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the respondent to prove his contention. Under such circumstances, once this Court already decided very same issues between the parties, a second option is not maintained as res judicata. Therefore, the petitioner is to be dismissed. 4. Heard the learned counsel on either side and perused the records. 5. It is the contention of the petitioner that the 1st petitioner Company is exempted under Section 58A(7) of the Companies Act. The provisions of Section 58A(7) of the Act specifically makes all provisions of Section 58A of the Act except Section 58A(2) of the Act inapplicable to financial companies and as such no prosecution for offence punishable under Section 58A(6) of the Act will not at all lie on the finance company. Though, the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is liable to be dismissed. 7. On a careful perusal of the entire materials, it is noted that the 1st petitioner Company is a Public Limited Company registered under the Companies Act 1956. The Company was initially incorporated as M/s.Viswpriya Financial Services and Securities Pvt Ltd on 13.05.1991 and later converted to Public Limited Company on 03.09.1997. The 1st petitioner company was at that time managed by the second petitioner. The second petitioner was himself the Chairman and Managing Director and in default, the person responsible for the affairs of the 1st petitioner company. The 1st petitioner Company was a non-Banking Financial Company at the time of issuance of impugned advertisement and therefore, it would be liable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that only the trial Court has to consider all the facts from the materials available and whether the petitioner will come under exemption under Section 58A and 58A(2)b and punishable under Section 58A(6) of the act, has to be decided after recording the evidence. Now, on the very same points, after much longer years has filed this petition invoking the very same provisions before the very same Court. In this regard, it is pertinent to extract the order passed in Crl.O.P.No.17646 of 1997, which reads as follows: "15.As pointed out by the counsel for the respondent, the question as to whether the first petitioner-company is exempted under Section 58A and the copy of the advertisement need not be delivered to the Registrar of Companies an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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