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2006 (1) TMI 266 - HC - Companies Law

Issues:
Quashing of proceedings under section 630 of the Companies Act, 1956 | Validity of the order rejecting petitioner's plea of complaint petition not maintainable | Entitlement to retain company quarter under Rule 66 of Assam Plantation Labour Rules, 1956 | Compliance with section 200 of the CPC | Invocation of jurisdiction under section 482 Cr. P.C. and Article 227 of the Constitution of India

Analysis:
The petitioner sought to quash proceedings in CR Case No. 930(c)/2004 under section 630 of the Companies Act, 1956, challenging the legality and validity of the order rejecting the plea that the complaint petition was not maintainable. The complaint alleged non-vacation of a company quarter by the petitioner, leading to prosecution under section 630. The petitioner argued entitlement to retain the quarter under Rule 66 of the Assam Plantation Labour Rules, 1956, citing a pending Reference Case No. 12/2004. Additionally, the petitioner contended that summons were issued without compliance with section 200 of the CPC, urging interference under section 482 Cr. P.C. and Article 227 of the Constitution of India.

The core issue was whether the petitioner could retain the quarter until the Reference Case No. 12/2004's conclusion. The reference concerned extending the petitioner's service, not discharge, as his service ended upon superannuation. The Court clarified that protection under Rule 66(1)(iii) applied only to discharge, not refusal of service extension post-superannuation. Section 630 of the Companies Act, 1956 allowed punishment for wrongful possession of company property, justifying the complaint against the petitioner. The Court upheld the legality of the complaint and rejected the petitioner's objections.

In the judgment, various legal precedents were cited. The Court distinguished cases like S.K. Sarma v. Mahesh Kumar Verma and Rohtas v. State of Haryana, emphasizing the inapplicability of those rulings to the petitioner's situation. The Court also referenced the purpose of enacting section 630 of the Companies Act, 1956, as providing swift relief to companies in property disputes. Quashing proceedings was cautioned to be done sparingly, with the Court emphasizing that the inherent power under section 482 Cr. P.C. aimed to prevent abuse of process or ensure justice. Ultimately, the Court dismissed the revision application, finding no merit and leaving parties to bear their own costs.

 

 

 

 

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