Parallel labour disputes do not bar a section 630 prosecution for wrongful withholding of company property when trial has already begun.

Parallel industrial proceedings on workman status and alleged illegal retrenchment did not, by themselves, justify quashing or staying a prosecution under section 630 of the Companies Act, 1956. The HC held that the criminal complaint concerned wrongful withholding of company property and had to be tested on its own ingredients, with the complainant retaining the burden of proof. Because evidence in the trial had already commenced and no exceptional ground for interference was shown, the request to halt the prosecution failed and the criminal trial was directed to continue.

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Issues: Whether criminal proceedings under section 630 of the Companies Act, 1956, should be quashed or stayed pending adjudication of the workman-status and retrenchment dispute before the Labour Court.

Analysis: The petition was founded on the contention that the petitioner continued in service because his termination was illegal under the Industrial Disputes Act, 1947, and that the accommodation was part of his service conditions. The Court held that the criminal complaint was for wrongful withholding of company property under section 630 of the Companies Act, 1956, and that the complainant retained the burden to prove the ingredients of the offence. The existence of a parallel labour dispute did not affect the continuation of the criminal trial, especially when evidence had already commenced and speedy trial was a relevant consideration. On the facts, no exceptional ground was made out to justify either quashing or staying the prosecution.

Conclusion: The request to quash or stay the criminal proceedings was rejected and the trial was directed to continue.

Final Conclusion: The criminal prosecution for wrongful withholding of the company flat was permitted to proceed, and the petition seeking interference with the pending trial failed.

Ratio Decidendi: A pending industrial dispute concerning employment status or validity of termination does not, by itself, warrant quashing or stay of a criminal prosecution under section 630 of the Companies Act, 1956, where the offence can be adjudicated on its own ingredients and the trial has already commenced.

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