Unlawful retention of company property upheld; conviction sustained while limited administrative time to vacate granted upon undertaking.

Conviction for unlawful retention of company property was upheld where the petitioner admitted that his right to occupy company quarters ended on resignation and he continued in possession; the statutory prohibition applies to persons who retain company premises after their occupancy right ceases, and criminal liability was sustained. No substantive leniency was afforded because continued occupation prejudiced other entitled employees; however a limited administrative indulgence was granted to permit vacating by a specified date on condition of a filed undertaking, breach of which exposes the occupier to contempt proceedings.

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Issues: Whether the conviction and sentence passed against the petitioner under section 630 of the Companies Act for continuing illegal occupation of company premises after termination of employment is sustainable, and whether any leniency should be shown.

Analysis: The petitioner admitted being an employee given company quarters, that his right to occupy ended upon resignation, and that he continued in possession thereafter. Section 630 of the Companies Act applies to persons who unlawfully retain possession of company property after their right to occupy has ceased. The trial court convicted and sentenced the petitioner and the Sessions Court confirmed that conviction. The courts found no legal ground for exercise of mercy or technical leniency where the continued occupation prejudices other employees entitled to the accommodation. A limited administrative indulgence to permit vacating by a specified date was allowed on the condition of a filed undertaking, breach of which would expose the petitioner to contempt proceedings.

Conclusion: The conviction and sentence under section 630 of the Companies Act are sustained and the petitioner is not entitled to substantive leniency; vacating of the premises is permitted up to January 15, 1997 subject to the petitioner filing an undertaking and strict compliance.

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