Section 630 Companies Act applies to legal heirs where company property is allegedly retained after an employee's death.

A complaint under section 630 of the Companies Act, 1956 can be maintained against the legal heirs of a deceased employee where company property is alleged to be wrongfully withheld after the employee's death. The earlier view excluding relatives of an erstwhile employee was displaced by the Supreme Court's ruling recognising the provision's application in such circumstances. The High Court treated maintainability as established and held that a dispute over whether the property belonged to the company raised a factual issue for trial, not for quashing proceedings. The complaint was therefore held maintainable against the widow of the deceased employee.

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Issues: Whether a complaint under section 630 of the Companies Act, 1956 is maintainable against the legal heirs of a deceased employee for recovery of company property wrongfully withheld after the employee's death.

Analysis: The earlier view that section 630 did not extend to relatives of an erstwhile employee stood displaced by the Supreme Court's ruling that the provision is attracted where company property is wrongfully retained after the employee's demise. The Court therefore treated the complaint as legally maintainable against the widow of the deceased employee. The contention that the property did not belong to the company was held to be a factual matter to be raised before the trial court and not in a petition for quashing.

Conclusion: The complaint under section 630 was held maintainable against the legal heir of the deceased employee, and the orders dismissing the complaint were quashed.

Ratio Decidendi: A complaint under section 630 of the Companies Act, 1956 lies against the legal heirs of a deceased employee if company property is alleged to be wrongfully withheld after the employee's death.

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