9911796707
|
Home
Issues: Jurisdiction of criminal court under section 113(2) of the Companies Act, 1956
Analysis: 1. Jurisdiction of Criminal Court: The applicant sought to quash criminal proceedings under section 113(2) of the Companies Act, 1956. The prosecution alleged non-transfer of purchased shares within the prescribed time limit. The complaint was filed, and the Chief Judicial Magistrate transferred the case for inquiry under section 192 of the Code of Criminal Procedure. The accused challenged the jurisdiction of the criminal court, contending that prosecution powers lie with the Enforcement Board of India under the Companies Act. 2. Legal Provisions: The definition of 'court' under section 2(11) of the Act distinguishes between matters related to a company and offences against the Act. Section 10E establishes the Board of Company Law Administration with powers conferred by the Act. Sub-sections (4C) and (4D) grant the Board powers akin to a civil court under the Code of Civil Procedure, 1908. The court's jurisdiction under section 10E extends to matters concerning companies, including offences against the Act. 3. Court's Jurisdiction: The court analyzed the provisions of sections 2(11) and 10E, concluding that criminal courts have jurisdiction to entertain complaints related to offences against the Companies Act. The court emphasized that the criminal court, including a Magistrate of the First class, holds jurisdiction to try such offences. The argument challenging the criminal court's jurisdiction was dismissed, affirming the court's authority to adjudicate matters under the Act. 4. Decision: The court upheld the jurisdiction of the criminal court to decide cases involving offences against the Companies Act. The application to quash the criminal proceedings was dismissed, affirming the legality and jurisdiction of the court to adjudicate matters under section 113(2) of the Companies Act, 1956. The judgment emphasized the distinction between matters related to companies and offences against the Act, reinforcing the court's authority in such cases.
|
