2000 (7) TMI 854 - HC - Companies Law

Summary

Issues:
Jurisdiction of the Special Judge for Economic Offences at Hyderabad, Limitation plea raised by accused-petitioners.

Jurisdiction Issue Analysis:
The petitioners, accused in a case under section 113 of the Companies Act, sought to quash proceedings before the Special Judge for Economic Offences in Hyderabad. The complainant alleged non-delivery of shares duly transferred in his name. The petitioners contended that the complaint should have been filed where the company's Registered Office is located, not in Hyderabad. The High Court referred to a Supreme Court case establishing that the cause of action for such offenses arises where the Registered Office of the company is situated. As the company's office was in Mumbai, not Hyderabad, the High Court held that the Special Judge in Hyderabad lacked jurisdiction to entertain the complaint.

Limitation Issue Analysis:
The accused-petitioners also raised a plea regarding limitation. The court acknowledged that limitation is a mixed question of fact and law and should be adjudicated by the trial court. The accused-petitioners' plea on limitation was kept open for consideration by the trial court. The High Court did not express an opinion on the limitation issue and left it open for the trial court to decide. Consequently, the High Court directed the Special Judge in Hyderabad to return the complaint to the complainant for presentation before the appropriate court having jurisdiction to try the case in accordance with the law.

This judgment clarified the jurisdictional aspect concerning offenses under section 113 of the Companies Act, emphasizing that the place of the Registered Office determines the cause of action. Additionally, the High Court ensured that the limitation issue was left open for the trial court to decide. The ruling provided guidance on the proper forum for filing complaints related to non-delivery of shares and certificates, emphasizing compliance with statutory procedures and the importance of determining the correct jurisdiction for legal proceedings.