TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether a criminal complaint under Section 630 of the Companies Act, 1956 against an ex-employee for wrongful withholding of company quarters was maintainable and whether the summoning order was liable to be quashed under Section 482 of the Code of Criminal Procedure, 1973.
Analysis: The quarters had been allotted to the petitioner during her employment and it was admitted that she continued in possession even after cessation of service. The Court found that Section 630 of the Companies Act, 1956 is not confined to existing employees but also extends to ex-employees who wrongfully withhold company property. On the admitted facts, the complaint alleged wrongful withholding of the company's premises, and the Magistrate's summoning order was held to be legal and proper. No ground for exercise of inherent jurisdiction to quash the proceedings was made out.
Conclusion: The complaint was maintainable against the ex-employee and the petition for quashing was rejected.
Final Conclusion: The proceedings under Section 630 of the Companies Act, 1956 were permitted to continue, and the challenge under Section 482 of the Code of Criminal Procedure, 1973 failed.
Ratio Decidendi: Section 630 of the Companies Act, 1956 applies to ex-employees who continue to wrongfully withhold company property, and such complaints are maintainable where the admitted facts disclose continued unauthorized possession.
TaxTMI 
