In a recent decision, the Bombay High Court found all accused directors of M/s. Geeta Marine Services Pvt. Ltd. not guilty. They were charged with not submitting the necessary paperwork after the company was ordered to close down.
The directors, including Shivkant V. Chaudhary and others, were accused under a rule that requires directors to provide a statement of the company's financial affairs within a certain time. Not doing this can lead to jail time or fines.
"If any person, without a good reason, fails to meet any requirements of the section, he shall be punishable..."
The company was ordered to close on March 19, 2009, and an official was appointed to handle its closure. Notices were sent to the former directors to submit the necessary documents, but they supposedly did not do so.
The prosecution argued that Shivkant V. Chaudhary and the other directors did not submit the required paperwork, even after being reminded multiple times by the court.
During the trial, Shivkant V. Chaudhary and the other accused said they were not guilty. They claimed they had submitted documents, but the prosecution said these were incomplete or not in the right format.
The court looked at evidence, including written statements and witness questioning. A key question was whether the failure to submit documents was without a good reason.
Justice Sharmila U. Deshmukh decided that the prosecution did not prove the accused were intentionally careless. The court found no evidence that Shivkant V. Chaudhary and the other directors had the records needed to file the statement of affairs.
"The prosecution has failed to prove beyond reasonable doubt that the failure to file the statement of affairs by Shivkant V. Chaudhary and the other accused was without reasonable excuse."
The court's decision to find Shivkant V. Chaudhary and the other accused directors not guilty shows that there wasn't enough evidence to prove they intentionally did something wrong.
