2002 (3) TMI 957 - HC - Indian Laws

Summary

Issues:
Delay in filing a complaint under Section 207 of the Companies Act, 1956; Condonation of delay without notice to the accused; Legal validity of condoning delay without hearing the accused.

Analysis:
The judgment by the High Court of Himachal Pradesh addressed the issue of condoning a delay in filing a complaint under Section 207 of the Companies Act, 1956 without providing notice to the accused. The petition challenged the order of the Chief Judicial Magistrate, which had condoned a delay of two years and four months in filing the complaint without informing the accused. The primary question before the court was whether the delay could be condoned without notice to the accused, as per the provisions of the Code of Criminal Procedure.

The court highlighted the significance of Section 468 of the Code, which bars the court from taking cognizance of an offense after the expiration of the limitation period. However, Section 473 of the Code empowers the court to condone the delay under specific circumstances, such as proper explanation or interest of justice. The court emphasized that the accused is entitled to a notice when seeking an extension of time for filing a complaint, as the bar under Section 468 creates a valuable right for the accused. Extending the limitation period without notifying the accused would infringe upon the accused's rights and render the order illegal and unsustainable.

In this case, the court found that the Chief Judicial Magistrate had condoned the delay without providing notice to the accused, leading to a violation of the accused's rights and resulting in gross injustice. Consequently, the court allowed the petition, set aside the impugned order, and quashed the proceedings initiated based on that order. The case was remanded to the trial court with directions to afford the petitioners an opportunity to oppose the application for condonation of delay and then proceed with the case in accordance with the law.

Therefore, the judgment emphasized the importance of procedural fairness and the accused's right to be heard when seeking an extension of time for filing a complaint, ultimately leading to the setting aside of the impugned order and a remand for further proceedings with due process.