1997 (4) TMI 406 - HC - Companies Law

Summary

Issues:
1. Maintainability of the complaint filed.
2. Unlawful possession of official quarters by the accused/respondent.

Analysis:

The judgment by the High Court of Madras pertains to an appeal against the acquittal of the accused/respondent in a case involving possession of official quarters without authority. The complainant, a company, filed a private complaint under section 630 of the Companies Act, 1956, against the accused for possessing metal without proper authority. The accused was dismissed from the company, but continued to occupy the official quarters allotted to him, despite multiple notices to vacate. The trial magistrate acquitted the accused on the grounds of maintainability of the complaint, stating that the senior personnel officer who filed the complaint was not competent to do so.

The High Court analyzed the evidence and contentions presented. It was argued that the senior personnel officer had the authority to file and sign the complaint, as per the company's authorization. Reference was made to a Supreme Court ruling highlighting the competence of an authorized officer to file a complaint on behalf of the company. The High Court found that the trial magistrate erred in dismissing the complaint based on the competence of the senior personnel officer, as the subsequent authorization letter from the company ratified his actions. The court also noted that the accused could not claim continued employment status after the dismissal order was approved by the High Court.

The High Court concluded that the trial magistrate's judgment was erroneous and set it aside. The accused was found guilty under section 630 of the Companies Act and convicted accordingly. The accused was sentenced to pay a fine of Rs. 1,000 and directed to vacate the official quarters within a specified time frame, failing which he would face imprisonment. The court emphasized that the accused must pay the fine and vacate the premises as directed. The appeal was allowed, and the judgment of the trial magistrate was overturned.

In summary, the High Court found the complaint maintainable, established the accused's unlawful possession of official quarters, and convicted the accused under section 630 of the Companies Act, setting aside the trial magistrate's acquittal judgment.