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Issues:
Seeking to quash criminal proceedings under section 482 of CrPC based on relief under section 633(2) of Companies Act, 1956 for personal criminal liability in a case involving sections 406 and 420 of IPC. Analysis: The petitioner filed a petition under section 482 of the Criminal Procedure Code seeking to quash proceedings in CR. No. 310 of 2005 before the Judicial Magistrate First Class, Davanagere. The petitioner sought relief from personal criminal liability under section 633(2) of the Companies Act, 1956 concerning the liability of a company in liquidation. The complaint alleged offenses under sections 406 and 420 of the Indian Penal Code. The petitioner argued that continuing the proceedings against him would amount to an abuse of the legal process. The Court noted that under section 633(2) of the Companies Act, relief can be granted to an officer of a company in proceedings for negligence, default, breach of duty, misfeasance, or breach of trust if it is found that the officer acted honestly and reasonably in the circumstances. The Court emphasized the need for a detailed examination to determine whether the petitioner's conduct was reasonable and whether the alleged actions were only due to negligence, misfeasance, or breach of duty. The Court highlighted that multiple cases of dishonored cheques had been filed against the petitioner, who was identified as the Executive Director of the company facing winding-up proceedings. The Court concluded that the petition seeking to quash the complaint appeared premature as the determination of whether the petitioner acted honestly and reasonably required a detailed inquiry. The Court suggested that the petitioner should approach the Magistrate at the appropriate stage to seek necessary orders. Therefore, the petition was disposed of, leaving it to the Magistrate to assess the petitioner's conduct and determine the appropriate course of action in the ongoing criminal proceedings.
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