Accused Discharged Due to Limitation Period Expiry

The petitioners were discharged from the accusations based on the ground of limitation. The court held that since the offences were minor and the Central Government did not act within the limitation period, there was no need to further probe into the alleged offences, and the application was allowed accordingly.

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Issues: Whether the petitioners were entitled to be discharged under section 633(2) of the Companies Act, 1956 on the ground that the proposed prosecutions were barred by limitation under the Code of Criminal Procedure, 1973.

Analysis: The Court held that for offences alleged against company officers, the period of limitation begins when the Central Government, as the person aggrieved, acquires knowledge of the alleged offence. On the material before it, knowledge existed at least by the date of issuance of the show-cause notice, and the prosecution was not instituted within the applicable limitation period. The Court further held that an application under section 633(2) permits the High Court to consider whether there is cause to proceed and, where no cognizance can lawfully be taken because limitation has expired, to refuse further prosecution. The Court also declined to exercise power to extend limitation under section 473.

Conclusion: The petitioners were entitled to be discharged on the ground of limitation.

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