M/S Peoples General Hospital Private Ltd. (A Company Incorporated Under Companies Act 1956 Having I vs Union Of India And Others

Anand Pathak, J

Heard on admission as well as I.A.No.17242/2023 for stay.

The instant petition under Section 482 of Cr.P.C. is preferred by the petitioner, a Company incorporated under the Companies Act, 1956 seeking quashment of the proceedings of S.C. No.12/2021 under Section 447 of the Companies Act, 2013 (hereinafter referred to as "the Companies Act") pending in the Court of Special Judge under Companies Act, 2013, Gwalior and order dated 10-01-2021 whereby cognizance has been taken and process has been issued against the petitioner.

It is the submission of learned senior counsel appearing for the petitioner that a complaint has been filed purportedly under Section 447 of the Companies Act at the instance of Registrar of Companies in which the trial Court has taken cognizance vide order dated 10-01-2021 which according to him is illegal as it suffers from jurisdictional error. It is further submitted that as per Section 212 of the Companies Act, investigation can only be carried out by Serious Fraud Investigating Office and by any Investigating Officer who shall have the power of Inspector under Section 217 of the Companies Act to investigate the matter and cognizance of any such offence can only be undertaken by the Special Court if the complaint is in writing by Director, Serious Fraud Investigation Office or any officer of the Central Government authorized by general or special order in writing in this behalf by the Government.

Learned senior counsel for the petitioner referred various provisions of the Companies Act viz. 206, 208, 210 and 211 to bring home the legal position that the complaint filed by the Registrar of Companies suffers from jurisdictional error because Registrar does not have any authority or jurisdiction to file such complaint. He relied upon the judgment of Telangana High Court passed in the case of Sumana Paruchuri Vs. Jakka Vinod Kumar Reddy, MANU/TL/0928/2022 and Karnataka High Court passed in the case of Sri M Gopal Vs. Sri Ganga Reddy in Crl.P. No.3550/2017 to support his submission. While relying upon the judgment of State of Haryana & Ors. Vs. Ch. Bhajan Lal & Ors. AIR 1992 SC 604, it is submitted that express legal bar engrafted in the Companies Act renders the case vulnerable. He pressed for interim relief on the basis of submissions so advanced.

Learned counsel for the respondents opposed the prayer and referred letter dated 18-05-2020 written by Joint Director Office of Director General (Corporate Affairs) to Regional Director (NWR), Ministry of Corporate Affairs, Ahmedabad to submit that permission was given to the Registrar Companies, Gwalior by the said letter. Since competent authority approved the same, therefore, due permission has been granted for prosecution of the case. However, he prayed for two weeks' time to file reply in the matter.

Learned counsel for the respondents further submits that an application under Section 332 and 309(2) of Cr.P.C. for stay at the instance of petitioner is already pending consideration before the Special Court. Therefore, petition is premature.

Heard rival contentions and perused the documents appended with the petition.

Issue notice to the respondents.

At this juncture, learned counsel for the respondents accepts notice on behalf of respondents, therefore, issuance of notice is dispensed with. Two sets of petition along with documents be supplied to Shri Praveen Kumar Newaskar by tomorrow. Respondents are directed to file reply of admission/interim relief on or before next date of hearing.

So far as interim relief is concerned, looking to the submissions so advanced as well as the permission given vide letter dated 18-05-2020 (Annexure A/13), question of interim relief shall be considered on the next date of hearing.

List in the week commencing 3rd October, 2023.