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1940 (6) TMI 14 - HC - Companies Law

Issues:
Appeal against the order for prosecution under sections 192, 193, 465, 471, and 477 of the Indian Penal Code for forging a resolution of a company.
Validity of the Company Judge's order under section 476 of the Criminal Procedure Code without a preliminary inquiry.
Justification of the prosecution order against the individuals involved in the forgery.

Analysis:
The judgment delivered by the High Court of Lahore involved an appeal challenging the order for the prosecution of two individuals under various sections of the Indian Penal Code related to forgery. The appeal was based on the argument that the Company Judge was not a competent authority to order prosecution under section 476 of the Criminal Procedure Code without conducting a preliminary inquiry. However, the Court dismissed this argument, emphasizing that the relevant section allows the Court to proceed without a preliminary inquiry if deemed unnecessary. The Court highlighted that the wording of the section itself does not mandate a preliminary inquiry, and previous decisions did not establish its legal necessity. Therefore, the Court found no merit in the argument challenging the Company Judge's order without a preliminary inquiry.

Regarding the justification for the prosecution order against the individuals involved in the forgery, the Court upheld the Company Judge's decision as proper and justified. The Court agreed that the evidence presented was sufficient to establish a prima facie case, indicating the necessity of prosecution without a preliminary inquiry. Specifically, in the case of one individual, K.S. Saadat Ali Khan, his counsel argued that he had no personal interest in the forged document and might have been misled by a relative who benefited from the alteration. The Court acknowledged this argument and granted an opportunity for K.S. Saadat Ali Khan to explain his involvement in initialing the alteration. Despite finding that K.S. Saadat Ali Khan did not directly benefit from the forgery, the Court allowed him to present his case before the Court, delaying the proceedings against him and keeping his appeal pending until further clarification on his role in the forgery.

In conclusion, the High Court of Lahore affirmed the validity of the prosecution order under section 476 of the Criminal Procedure Code without a preliminary inquiry and justified the prosecution of the individuals involved in the forgery based on the evidence presented. The Court's decision to allow K.S. Saadat Ali Khan to explain his actions reflects a fair consideration of his potential lack of personal gain from the forgery, indicating a balanced approach to the legal proceedings in this case.

 

 

 

 

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