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Issues: Whether a High Court under Section 633(2) of the Companies Act can entertain an application for relief to company officers where criminal proceedings in respect of the same alleged defaults have already been instituted and process issued by a Magistrate.
Analysis: Section 633(1) empowers the court before which proceedings are pending to relieve an officer from liability if he has acted honestly and reasonably; Section 633(2) permits an officer, apprehending that proceedings might be brought, to apply to the High Court for similar relief. Once proceedings in respect of the alleged negligence or default have been initiated before a Magistrate and process has been issued, those pending proceedings fall squarely within the ambit of Section 633(1) and the Magistrate is the appropriate forum to consider relief. Provisions of the Code of Criminal Procedure concerning cognizance, limitation and condonation of delay (Sections 467, 468, 469 and 473) do not alter the fact that filing of a complaint and attendant proceedings before the Magistrate constitute proceedings in respect of the offence; accordingly Section 633(2) is directed to apprehended proceedings, not to cases where proceedings have in fact commenced.
Conclusion: The High Court petition under Section 633(2) is not maintainable once proceedings have commenced before the Magistrate; the petition is dismissed. In favour of Respondent.