Locus standi in company complaints cannot defeat process where a civil court order and prima facie materials support the complainant's rights.

A complaint concerning company-related rights was not rejected for want of locus standi where an operative civil court order had recognised the complainant's entitlement and remained unstayed. Participation in annual general body meetings also supported the connection with the company. On those materials, the statutory objection under the Companies Act did not defeat maintainability, and the Magistrate had sufficient basis to issue process under the criminal procedure framework. The threshold challenge therefore failed, and the criminal proceedings were permitted to continue.

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Issues: Whether the complaint was not maintainable for want of locus standi under the Companies Act and whether the Magistrate was justified in issuing process under the Code of Criminal Procedure.

Analysis: The respondent's entitlement to assert rights in the company had been recognised by a civil court order, which had neither been set aside nor stayed. The respondent had also participated in the annual general body meetings, supporting the existence of his connection with the company. In that background, the statutory bar relied on by the petitioner could not by itself defeat the complaint. The materials before the Magistrate were sufficient to justify issue of process, and the complaint could not be rejected at the threshold on the facts of the case.

Conclusion: The objection to maintainability failed and the Magistrate's order proceeding with the complaint was upheld.

Final Conclusion: The revision was rejected and the criminal proceedings were allowed to continue.

Ratio Decidendi: Where the complainant's right in relation to the company stands recognised by an operative civil court order and materials disclose a prima facie case, a complaint cannot be rejected merely on a general objection of lack of locus standi, and process may be issued under the criminal procedure framework.

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