Limitation in criminal complaints over prospectus misstatements: delayed prosecution failed, and condonation was not accepted.

A criminal complaint alleging misstatement and false statements in a prospectus was barred by limitation because the offences under sections 63 and 628 of the Companies Act, 1956 were punishable up to two years, attracting the three-year period under section 468 CrPC. The later claim that the complainant discovered the falsity only from subsequent material did not establish the starting point of limitation or justify exclusion of time, and the continuing-wrong theory was rejected. As the delay was not specifically and satisfactorily explained before cognizance, the prosecution had become time-barred and the complaint and summoning order were quashed.

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Issues: Whether the complaint alleging misstatement and false statement in a prospectus was barred by limitation, and whether the delay could be saved by invoking the provision for condonation of delay.

Analysis: The offences under sections 63 and 628 of the Companies Act, 1956 carried punishment up to two years, attracting the three-year limitation period under section 468 of the Code of Criminal Procedure. The complaint was filed long after the prospectus was issued, and the explanation that the complainant came to know of the falsity only upon later material did not establish when the relevant facts first arose or when limitation commenced. The complaint did not clearly disclose the basis for exclusion of time or a satisfactory explanation for the delay, and the prosecution could not rely on a continuing-wrong theory to keep limitation alive. In such a time-barred matter, the court must address limitation at the pre-cognizance stage, and the accused acquires a valuable right once the prosecution becomes barred.

Conclusion: The complaint was barred by limitation and the reliance on condonation of delay was not accepted. The complaint and the summoning order were quashed.

Ratio Decidendi: A criminal complaint for offences punishable up to two years must be filed within the statutory limitation period unless delay is specifically and satisfactorily explained before cognizance is taken.

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