BENGALURU: Holding that the petitioners need to face trial, the high court has refused to quash proceedings in a criminal case registered against the MD and directors of a private company.
The Securities and Exchange Board of India (Sebi) had registered the complaint in March 2016 against Kaveri Telecom Products Ltd, Bengaluru, which is engaged in the manufacture of wireless telecommunication products, its MD C Shivakumar Reddy and five other directors.
It is alleged that the company failed to deposit and disburse the Rs 3 crore declared as dividend amount (for 2011-12) to its shareholders within the period prescribed under the law. Section 205 of the Companies Act requires that the dividend amount has to be deposited in a separate account within five days, to be disbursed to shareholders within 30 days thereafter.
The proceedings against them were pending before a special court for economic offences since 2016.
The petitioners claimed there was a delay of three years in filing the complaint, and it is barred by limitation in terms of Section 468 of the Code of Criminal Procedure. Sebi, on the other hand, said that when a show-cause notice was issued on February 13, 2013, the company sought time. Thereafter, one more notice was sent on March 13, 2013 and only afterwards did it start making payments, part by part. tnn
