Wrongful retention of company property can attract section 630 even after employment ends, despite civil or arbitral remedies.

Section 630 of the Companies Act, 1956 is described as a benevolent provision aimed at securing the speedy return of company property wrongfully retained by an officer, employee, former officer, former employee, or a person claiming under them. The text notes that its reach is not limited to current service and may apply to continued retention after cessation of employment. It also states that civil rights, a memorandum of understanding, or arbitration do not, by themselves, exclude criminal liability where wrongful withholding of company assets is alleged. Disputed questions about title, authority to retain, and the genuineness of the asserted arrangement are said to require trial rather than quashing review.

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Issues: Whether the complaint alleging wrongful withholding of company property by a former managing director disclosed an offence under section 630 of the Companies Act, 1956 so as to justify refusal to quash the proceedings under section 482 of the Code of Criminal Procedure, 1973, and whether the availability of civil or arbitral remedies barred the criminal prosecution.

Analysis: Section 630 is a benevolent provision intended to secure speedy return of company property wrongfully retained by an officer, employee, ex-officer, ex-employee, or a person claiming under them. Its operation is not confined to existing officers or employees, and wrongful retention after cessation of employment can attract the provision. The Court also held that the existence of civil rights, a memorandum of understanding, or arbitration does not by itself eliminate criminal liability where the complaint alleges wrongful withholding of company assets. Questions such as title, authority to retain, and the genuineness of the asserted arrangements were treated as disputed questions of fact requiring trial and not suitable for evaluation in quashing proceedings.

Conclusion: The complaint disclosed a triable offence and the proceedings were not liable to be quashed; the petition was dismissed.

Ratio Decidendi: A complaint under section 630 of the Companies Act, 1956 is maintainable against a former officer or employee who is alleged to wrongfully withhold company property, and such proceedings should not be quashed under section 482 of the Code of Criminal Procedure, 1973 when the defence raises disputed questions of fact.

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