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TMI Blog1952 (6) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... filed a complaint against the opposite party Shri Jagat Narain Rohatgi purporting to be under section 282-A of the Indian Companies Act. The allegations in the complaint inter alia are that from September, 1946, to 12th April, 1949, the accused opposite-party was the managing agent and managing director of the complainant company, that in such capacity the accused wrongfully obtained possession of properties of the company detailed in the complaint, that by dishonest and fraudulent representation (including express assurances that the accused would return all properties held by him on behalf of the company) the accused induced the directors of the complainant company to accept the accused's resignation, that the accused was refusing to deli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the place at which the registered office of the company is situate." The learned counsel appearing for the opposite party has placed strong reliance on the words "under this Act" and has argued that the effect of the use of these words in section 3 of the Indian Companies Act is to make prior sanction of the High Court a condition precedent to the cognizance by a Magistrate of a case relating to an offence under the Indian Companies Act. I can find no warrant whatsoever for this interpretation of section 3 of the Indian Companies Act. He has not argued that the Magistrate has no jurisdiction to try the case. The argument advanced by him is that the jurisdiction arises only after the necessary direction or sanction is given by the High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to the prosecution of persons under section 282-A of the Companies Act seems to have been laid down either under section 3 of the Indian Companies Act or in any other section of the Act. This argument of the learned counsel, therefore, seems to be devoid of all merit. Section 282-A of the Indian Companies Act is only a declaratory section specifying the ingredients constituting an offence under the Indian Companies Act. The proceedings relating to the trial of such offences are not proceedings under the Indian Companies Act but they are proceedings under the Criminal Procedure Code. Section 3 of the Indian Companies Act was interpreted by the Allahabad High Court in a Full Bench case reported in Harish Chandra v. Kavindra Narain Sinha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st class shall try any offence against this Act. (2)If any offence which by this Act is declared to be punishable by fine only is committed by any person within the local limits of the ordinary original civil jurisdiction of the High Court of Judicature at Fort William, Madras and Bombay, such offence shall be punishable upon summary conviction by any Presidency Magistrate of the place at which such court is held." It is no doubt correct that the said section does not clearly specify the court by which the offences against the Companies Act are to be tried but they do indicate that the legislature at any rate contemplated their trial by the Court of a Presidency Magistrate or a Magistrate of the first class. In an indirect way they are in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt can take cognizance of the offence straight off and try the accused itself, without following the procedure laid down in the Code." In view of the law laid down in the said case I am unable to see any force in the arguments of the learned counsel for the applicants. The learned counsel for the opposite-party has also raised certain other points which according to him, are legal points and go to the root of the matter. He has argued that according to the complaint itself no ingredients of any offence either under the Indian Companies Act or under the Indian Penal Code have been made out. Further he has submitted that section 282-A of the Indian Companies Act ceas as to be applicable as soon as the property is taken into custodia legis. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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