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Issues: Whether the criminal proceedings for alleged contravention of section 58A of the Companies Act and rule 3(a) of the Companies (Acceptance of Deposits) Rules, 1975, pending for an inordinately long period without trial having commenced, deserved to be quashed in exercise of inherent powers under section 482 of the Code of Criminal Procedure, 1973.
Analysis: The proceedings had remained pending since 1984 without any effective progress and the trial had not commenced even after many years. The Court held that keeping such prosecutions alive indefinitely, without any real steps to conduct the trial, amounted to an abuse of process and was contrary to the need for timely criminal adjudication. The Court also found that the facts justified interference under the inherent jurisdiction of the High Court, and that the continuation of the proceedings would serve no useful purpose.
Conclusion: The issue was decided in favour of the petitioners and the proceedings were held liable to be quashed.