After dividend payment SEBI cannot initiate action u/s 207 of Companies Act, 1956

Mukkaram Jan Vs SEBI (Karnataka High Court) Karnataka High Court held that once the dividend is paid by the company, SEBI has no power to initiate any action against the company or its directors who have defaulted in payment of dividend as specified under Section 207 of the Companies Act, 1956. Facts- The Company in its Annual General Board Meeting held on 29.09.2009 resolved to declare dividends to its shareholders. Since the Company did not pay the dividends as resolved in its meeting, the respondent (SEBI) issued several notices to the Company calling upon the Company to pay the dividends. ...