The Madras High Court has set aside the proceedings pending against nine officials of the Tamil Nadu Urban Infrastructure Finance Services, pending before the Economic Offences Court at Egmore here.

[5/1, 07:09] Sekarreporter: The Madras High Court has set aside the proceedings pending against nine officials of the Tamil Nadu Urban Infrastructure Finance Services, pending before the Economic Offences Court at Egmore here.

Justice M Nirmal Kumar quashed the proceedings on the file of the Additional Chief Metropolitan Magistrate [EO-1], while passing orders on two criminal original petitions, the other one from State Industries Promotion Corporation of Tamil Nadu (SIPCOT), on April 25.
[5/1, 07:10] Sekarreporter: The first company, wholly owned by the Tamil Nadu government, had been registered and incorporated under the Companies Act. According to the Registrar of Companies, the company, falling under the ambit of Cost Audit, had not filed the same for 2013-14, even beyond the last date of submission. It amounted to contravention of sub-section (6) of Section 148 of the Companies Act, 2013.

As per this section, a company shall, within 30 days from the date of receipt of a copy of the cost audit report prepared in pursuance of a direction under sub-section (2), furnish to the central government with such report along with full information and explanation on every reservation or qualification contained therein. As per sub-section (8), if any default is made in complying with the provisions of this section, the Company and every officer of the company who is in default shall be punishable in the manner as provided. Since the accused have not complied with the provisions, prosecution was launched.

Aggrieved, they moved the High Court with the present petitions. For petitioner Advocate Ramesh venkatachalabathi argued