Company property recovery under Section 630 can be ordered during trial when no independent right to retain possession is shown.

Section 630 of the Companies Act, 1956 is a beneficent, quasi-criminal provision aimed at speedy recovery of company property wrongfully withheld after cessation of employment. Where the employee's right to retain the allotted property ends with employment and no independent right or express agreement to remain in possession is shown, the Court may direct delivery of possession under Section 630(2) without waiting for final conviction or conclusion of the criminal trial. On the facts, the company's right to recover the flat was clear and wrongful withholding was established, so the direction to vacate was upheld and immediate restoration of possession was secured.

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Issues: Whether, in proceedings under Section 630 of the Companies Act, 1956, the Court could direct an employee to deliver vacant possession of company property during the pendency of the criminal trial, and whether such direction required prior conviction or final adjudication under Section 630(1).

Analysis: Section 630 is a beneficent and quasi-criminal provision intended to secure speedy retrieval of company property wrongfully withheld by an officer or employee after cessation of employment. The entitlement to retain the allotted property is coterminous with the employment and, on termination or resignation, the occupant must return the property unless an independent right or an express agreement to the contrary is shown. The Court found that the company's right to recover the flat was explicit, that the respondent had no independent right to remain in possession, and that the materials on record showed wrongful withholding. It further held that the power under Section 630(2) is not postponed until the end of the trial, and that the absence of a formal conviction does not bar an order for delivery of possession where the company's right is clear.

Conclusion: The direction for delivery of possession pending trial was upheld and the respondent was ordered to vacate the flat in favour of the petitioner-company.

Final Conclusion: The application succeeded in securing immediate restoration of the company flat, while the criminal trial was directed to proceed expeditiously.

Ratio Decidendi: Where company property is being wrongfully withheld after cessation of employment and no independent right to continue in possession is shown, the Court may order delivery of possession under Section 630(2) without waiting for final conviction, because the provision is intended to provide speedy restoration of company property.

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