Section 630 Companies Act covers ex-employee's retention of company property, and pending labour disputes do not bar prosecution.

Section 630 of the Companies Act applies where a former employee continues to retain company property allotted in connection with employment, because the right to possession ends with termination of service. A pending labour dispute does not by itself authorise continued retention of the company's property, and a challenge that the matter is civil in nature does not defeat criminal proceedings where the materials disclose a prima facie case. The complaint and summoning order were therefore upheld, and quashing under Section 482 CrPC was not warranted on the facts.

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Issues: Whether proceedings under Section 630 of the Companies Act could be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the ground that the dispute was civil in nature and that the complainant lacked authority.

Analysis: Section 630 penalises an officer or employee who wrongfully withholds company property in his possession, and the expression covers even a former employee retaining property after termination of service. Where accommodation or other property is given in connection with employment, the employee's right to continue in possession ends when the employment ends, and a pending labour dispute does not by itself confer any continuing right to retain the company's property. The materials before the Magistrate disclosed a prima facie case for summoning, and the challenge to the complainant's authority and the claim of a civil dispute did not show any legal infirmity in the criminal process.

Conclusion: The application for quashing was not maintainable on the facts and the summoning and complaint proceedings under Section 630 were upheld against the applicant.

Ratio Decidendi: A terminated employee who continues to retain company property allotted in connection with employment may be prosecuted under Section 630 of the Companies Act, and such proceedings are not barred merely because an employment-related dispute is pending elsewhere.

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