P&H: Refuses to Quash Complaint under Companies Act, as disputed factual issue should be decided at trial
The Punjab and Haryana High Court has refused to quash a complaint against M/s Loil Continental Foods Ltd. and two of its directors over alleged acceptance of deposits in breach of the Companies Act, 1956. Justice Manisha Batra held that whether the company received the loans from directors alone or also from their relatives was a disputed factual issue that should be decided at trial.
The Registrar of Companies filed the complaint under Section 58A(6) of the Act after scrutiny of the company’s accounts showed unsecured loans of more than Rs 22 crore listed under the heading From Director &...
