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4. In the connected C.C. No. 30756/2021 the allegations of the complaint are same as that of the allegations in the C.C. No. 30750/2021. However, it is alleged in C.C. No. 30756/2021 that the accused have committed the offences punishable U/sec.266G & 628 of the Companies Act, 1956. In the course of trial it was brought to notice of this court that, the offence punishable U/sec.266G was compounded before the Hon'ble Company Law Board, Chennai in C.A No.287/2014 on 22/05/2015, which was also confirmed by Hon'ble High Court of Karnataka in C.A No.17/2015, on 22/07/2022 and permitted the trial of the offences C.C.No. 30750/2021 C/w C.C.No.30756/2021 punishable U/sec.177, 416, 419 & 420 of IPC in C.C. No.30750/2021. Further, it was submitted that the offence punishable U/sec.628 of the Companies Act alleged in C.C. No.30756/2021 was not compounded and as such, said C.C. No.30756/2021 shall be proceeded for the said offence.

5. Thereafter, in the course of the evidence before charge, it was mutually agreed by both the parties that, as the allegations & issues involved in these cases are one & the same, both these cases can be clubbed together for further trial. Accordingly, these two cases were clubbed and the common evidence before charge U/Sec. 244 of Cr.P.C., was recorded. Thereafter, in the course of hearing before charge it was mutually agreed by both the parties that the offence punishable U/sec. 628 of the Companies Act as alleged in C.C. No. 30756/2021 & the offence punishable U/sec.177 of IPC as alleged in CC No. 30750/2021 are one and the same arising out of C.C.No. 30750/2021 C/w C.C.No.30756/2021 a common incident & also having same ingredients and as such either of the said offences have to be charged, but not both. Further, it was also agreed that the offence punishable U/sec. 628 of the Companies Act being under the Special enactment shall prevail over the offence punishable U/sec.177 of IPC, which is a General enactment and as such charge may be framed for the offence punishable U/sec.628 of the Companies Act only. Further, it is also agreed that the offence punishable U/sec.419 & 420 of IPC cannot co-exist as both are different species of the offence of cheating. As such, the ingredients of the allegations made in this case would attract only the offence punishable U/sec.419 of IPC, but not both 419 & 420 of IPC. Accordingly, the charges were framed for the offences punishable U/sec.419 of IPC & Sec.628 of the Companies Act, read over & explained to the accused in the language known to them, wherein they have not pleaded guilty, but claimed for trial. Hence, the case was taken up for trial.

C.C.No. 30750/2021 C/w C.C.No.30756/2021

20. Apart from all the above Ld. Defence counsel has contended that as the very offence of obtaining more than one DINs, which is P/U/Sec.266G of The Companies Act, 1956 was compounded, the corresponding offence P/U/Sec.628 of the said Act would not survive. He also argued that if at all said offence P/U/Sec.628 would survive, Hon'ble High Court while disposing said C.A No.17/2015 would have permitted the trial of said Offence P/U/Sec.628. But, in the said order Hon'ble High court has specifically & clearly held that the trial of the offence punishable U/sec.177, 416, 419 & 420 of IPC in C.C. No.30750/2021 shall be continued, but not stated that the remaining offence punishable U/sec. 628 of the Companies Act after compouding the offence punishable U/sec. 266G of the Companies Act in C.C. No. 30756/2021, on which said C.A No. 17/2015 has arisen shall be continued.

C.C.No. 30750/2021 C/w C.C.No.30756/2021

22. Therefore, as rightly argued by the defence counsel it appears that as the main offence punishable U/sec.266G of the Companies Act was compounded, the other offence punishable U/sec. 628 of the Companies Act, may not survive independently and as such the company law board as well as Hon'ble high court have not stated anything as to whether the proceedings in respect of the remaining offence punishable U/sec.628 of Companies Act as alleged in the said C.C. No. 30756/2021 shall be continued. As such the proceedings for the offence punishable U/sec.628 of the Companies Act after compounding the main offence punishable U/sec. 266G may not survive.