Section 633(2) relief cannot shield directors from IPC criminal proceedings outside the Companies Act scheme.

Section 633(2) of the Companies Act, 1956 was held to provide protection only against proceedings for negligence, default, breach of duty, misfeasance or breach of trust connected with an officer's functions under that Act. It could not be extended to criminal proceedings arising from alleged Indian Penal Code offences such as conspiracy, forgery, cheating and falsification of records, because those offences fall outside the statutory scheme of the Companies Act. On that basis, the High Court declined to interdict the pending investigation, and relief under section 633(2) was refused.

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Issues: Whether relief under section 633(2) of the Companies Act, 1956 could be granted to shield the petitioners from criminal proceedings based on offences under the Indian Penal Code.

Analysis: Section 633(2) empowers the High Court to grant relief only in relation to proceedings for negligence, default, breach of duty, misfeasance or breach of trust connected with an officer's position under the Companies Act. The proceedings in question arose from alleged offences under the Indian Penal Code, including conspiracy, forgery, cheating and falsification of records, which are distinct from offences created by the Companies Act itself. The Court held that the protection under section 633(2) cannot be extended to criminal proceedings outside the statutory scheme of the Companies Act, and the pending investigation could not be interdicted on that basis.

Conclusion: The petitioners were not entitled to relief under section 633(2) in respect of the IPC proceedings, and the petition failed.

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