Flex Foods Ltd. vs Registrar Of Companies (Delhi And ...
1996 Latest Caselaw 257 Del

JUDGMENT

Jaspal Singh, J.

(1) The petition is against the order of summoning under section 73(2B) of the Companies Act, 1956 passed by the learned Additional Metropolitan Magistrate.

(2) Although the petitioner challenges the order on number of grounds, I am confining myself only to what was convincingly brought home by Mr. Arun Jaitley. It relates to total lack of non-application of mind by the learned Magistrate while passing the impugned order.

(3) The entire order of summoning is cyclostyled with only the name of the petitioner company, the relevant provision of the Companies Act and the next date of hearing added with hand. This is how the order runs : "REGISTRAROF Companies, Delhi & Haryana, New DELHI. Versus M/s. Flex Food Limited & Others. 30-11-93 Present Company Prosecutor for the .complainant. Complaint presented today. It is to be registered. The complainant is a public servant and has prayed for exemption of his personal appearance till further orders. He has further prayed that he is filing the present complaint in his official capacity and he need not be examined under section 220 Cr.P.C. I have perused the complaint and find prima-facie grounds to proceed against the accused under section 73(2A) of the Companies Act, 1956. The presence of the complaint is expected till further orders and he is authorised to prosecute the complaint through Company Prosecutor. The complainant need not be examined under section 200 Cr.P.C. Process be issued accordingly and accused be summoned to appear on 21-1-94. sd/- (M.S.SABHARWAL) ADDL.CHIEF M.M. DELHI. 30-11-93"

(4) The Magistrate in deciding whether process should issue must exercise judicial discretion having regard to the materials placed before him. In other words, the order has to be passed on judicially sound grounds and the order passed must bear testimony to such an approach. But, then, when cyclostyled orders are passed they only betray a cavalier approach to a very solemn duty. Such orders defeat the law and hurt judicial conscience.

(5) I allow the petition, set aside the impugned order and direct the learned Magistrate to give a fresh look, this time judicial, to the whole matter.