Companies Act Special Court jurisdiction depends on an alleged offence under the Act; IPC-only prosecution stays with ordinary criminal court.

The Special Court under the Companies Act, 2013 can exercise jurisdiction only when an offence punishable under that Act is alleged. Because the prosecution in this matter was based solely on IPC offences alleging forgery, fabrication of company records, cheating and conspiracy, and no Companies Act offence was registered or shown, the jurisdictional precondition for invoking Sections 435 and 436(2) was absent. The ordinary criminal court was therefore competent to try the case, and the plea for discharge on Special Court jurisdiction was rejected; the petition was dismissed.

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Issues: Whether the Special Court constituted under the Companies Act, 2013 had jurisdiction to try the case when the police had registered offences only under the Indian Penal Code and no offence under the Companies Act had been alleged.

Analysis: The jurisdiction of a Special Court under Sections 435 and 436(2) of the Companies Act, 2013 arises when an offence punishable under that Act is alleged. The notification constituting the Special Court was confined to offences under the Companies Act, 2013. In the present case, the prosecution was launched only for offences under the Indian Penal Code on allegations of forgery, fabrication of company records, cheating and conspiracy. No offence under the Companies Act was registered or shown to have been committed, and therefore the precondition for invoking Special Court jurisdiction was absent. The trial court was, accordingly, justified in holding that the ordinary criminal court had jurisdiction.

Conclusion: The plea for discharge on the ground of Special Court jurisdiction was rejected and the petition was dismissed.

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