H. P. GUPTA versus HIRALAL

H. P. GUPTA versus HIRALAL

The offence under s. 207 occurs at the place where the failure to discharge the obligation arises, namely, at the registered office of the company where posting of the dividend warrant should happen, and thus only the court within whose jurisdiction the registered office is situate can try the offence.

Parties
Appellant: H.P. Gupta; Respondent: Hiralal
Jurisdiction
India
Judgment Date
24 February 1970
Procedural Posture
Criminal Appeal / Appeal on Certificate From Allahabad High Court
Outcome
Appeal allowed
Legal Topics
Jurisdiction, Failure to Pay Dividend, Companies Act, 1956 S. 207
Company Law Jurisdiction Failure to Pay Dividend Companies Act, 1956 S. 207

Case Brief

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Parties

H.P. Gupta

Appellant

Hiralal

Respondent

Procedural Posture

Criminal Appeal / Appeal on Certificate From Allahabad High Court

Legal Issues

  1. 1 Whether the Magistrate at Meerut had jurisdiction to try complaints under s. 207 of the Companies Act, 1956 for failure to pay dividend

Ratio Decidendi

The offence under s. 207 occurs at the place where the failure to discharge the obligation arises, namely, at the registered office of the company where posting of the dividend warrant should happen, and thus only the court within whose jurisdiction the registered office is situate can try the offence.

Court Disposition

Appeal allowed

Orders

  • High Court's orders set aside
  • Meerut Magistrate has no jurisdiction; venue of trial is Delhi