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TMI Blog2007 (7) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... and Weaving Mills had installed a mill in Delhi known as Birla Cotton Spinning and Weaving Mill located at Kamla Nagar. The mill had more than 3,000 employees and had 900 quarters in its nearby vicinity. The quarters provided accommodation to the employees. The quarters/residential colonies are popularly known as New Birla Lines, Old Birla Lines, Shivaji Lines, Khilonawala Bagh, etc. They were allotted by the company to its employees on licence basis. The allotments were allegedly made with the terms and conditions that the employee would be entitled to reside in the quarter so long as he continued in employment and would vacate it and handover the vacant possession back to the company upon cessation of his employment. 3. Respondent No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racts of the order are as follows :- "The beneficent provision contained in section 630(1)(b ) of the Act has been enacted by the Legislature with the object of providing summary procedure for retrieving the property of the company. The Companies Act is a special enactment having precedence over the code as it explicitly provides the mode for retrieving the property of the company in the hand of its past employees as noticed above. If the prayer made in the application is allowed, it would be contrary to the legislative intent contained in section 630(1) and (2) of the Act and would amount to nullifying the provision empowering the court to give direction to the past employee for delivery of the possession of the property of the company wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s property, is explicit and is a statutory right in view of section 630 of the Companies Act. Learned counsel contended that the power to restore possession even during the pendency of criminal proceedings is well recognised by virtue of that provision as well as the two decisions cited. 9. The trial court which considered the application of a present petitioner took into consideration the text of section 452(1). It was of the opinion that the court's power to make an appropriate order for disposal to any person claiming to be entitled to possession of the property, a document produced before it or its custody or regarding which any offence appears to have been committed, has to be read in the context of the term 'inquiry' defined in secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrative itself the original owner (M/s. Texmaco Ltd.) entered into a scheme of compromise arrangement which was sanctioned by this court. Thereafter, the successor entity closed down operations and sought to recover the other premises. In these circumstances, it would be imprudent for the court in exercise of its inherent power to virtually short cut and forestall a trial (where the parties have contested) and virtually allow the complaint. Undoubtedly, Parliamentary intention in enacting section 630 of the Companies Act was to ensure a speedy resolution of disputes relating to possession of the company's immovable properties. Yet that does not mean that what ordinarily should be done at the final stage, ought to be done at the interim stag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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