9911796707
TMI Blog2004 (4) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... e service of opposite party No. 2 Company and while he was in service he was extended the facility of residential accommodation since 93. Petitioner s service was terminated by the Company with effect from 6-10-1999. The Company thereafter asked the petitioner to vacate the residential quarter since he ceased to be in employment of the Company. In spite of notice and reminders, petitioner did not vacate the premises and thereby he alleged to have committed offence under section 630 of the Companies Act by wrongfully withholding the said premises which is the property of the Company. 3. Learned counsel for the petitioner assailed the criminal proceeding and the order of cognizance as being illegal and wholly without jurisdiction. Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sonment for a term which may extend to two years." 5. From bare perusal of the aforesaid provision, it is manifest that if any employee of a company wrongfully obtains illegal possession of any property of a company or having in possession of such property wrongfully withholding the same, is liable to be prosecuted and punished. 6. Having regard to the submission made by the learned counsel, the only question that falls for consideration is whether an officer or employee of a company whose services has been terminated can be brought under the mischief of the provision of Companies Act. In other words whether any employee or the officer of a company whose service has been terminated cannot be prosecuted under the aforesaid section me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a company having any property of a company in his possession wrongfully withholds it or knowingly applies it to purposes other than those expressed or directed in the articles and authorized by the Act. It may well be that an officer or employee may have lawfully obtained possession of any such property during the course of his employment but wrongfully withholds it after the termination of his employment. That appears to be one of the functions of clause ( b ). It would be noticed that clause ( b ) also makes it an offence if any officer or employee of a company having any property of the company in his possession knowingly applies it to purposes other than those expressed or directed in the articles and authorized by the Act. That wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turned or restored to the company and the company is deprived of its possession. If the officer or employee of the company does any such act by which the property given to him is wrongfully withheld and is not restored back to the company, it will clearly amount to an offence within the meaning of section 630 of the Act. The object of enacting the sections is that the property of the company is preserved and is not used for purposes other than those expressed or directed in the articles of association of the company or as authorized by the provisions of the Act. On a literal interpretation of section 630 of the Act the wrongful withholding of the property of the company by a person who has ceased to be an officer or employee thereof may not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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