In a reprieve for Bollywood actress Preity Zinta and industrialists Ness Wadia and Mohit Burman,a local Chandigarh court today discharged them in a case where they were accused of not filing their balance sheets and annual returns as co-owners of the Indian Premier League (IPL) franchise Kings XI Punjab.
The Registrar of Companies (ROC) had filed a case against the trio. They were discharged today by the Court of Chief Judicial Magistrate (CJM),Chandigarh after Advocate Aalok Jagga and Ashok Jagga,counsels for the trio,apprised the court that the penalty for delay in filing the balance sheets has been paid by the franchise.
The prosecution had submitted that the co-owners of the company had tried to conceal the financial position of KPH Dreams,which owns KXIP,from the public by not filing the balance sheets and annual returns.
Contending on behalf of the trio,Advocate Aalok Jagga said,According to provisions of the Companies Act,delay in filing of financial statements cannot be said to be a penalising section. Once the penalty has been paid by the franchise,the owners cannot be prosecuted since the offence is compounded (compromised).
Preity Zinta had moved the High Court seeking stay on the proceedings pending in the lower court. Also,the trio had challenged the warrants issued by a lower court on account of their non appearance.
The high court had stayed the proceedings pending in the lower court and had asked ROC to clarify its stand on its complaint filed against the franchise owners. The high court had later disposed of the case and asked the three to represent to the ROC and trial court.
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