Non-cognizable company offence complaints cannot be left to police investigation; the Magistrate must dispose of the complaint under law.

A complaint alleging a non-cognizable offence under section 629 of the Indian Companies Act, 1956 could not be sent for police investigation under section 156(3) of the Code of Criminal Procedure, 1898. The High Court held that such an offence remained outside the scope of investigation contemplated by section 156(3), and even if the direction were treated as one under section 155(2), the Magistrate was bound to call for a report and then dispose of the complaint. The Magistrate could not simply leave the statutory complaint to police action. The impugned order was set aside and the complaint was directed to be dealt with according to law.

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Issues: Whether a complaint under section 629 of the Indian Companies Act, 1956, relating to a non-cognizable offence could be forwarded to the police under section 156(3) of the Code of Criminal Procedure, 1898, and whether the Magistrate could decline to pass a final order on the complaint by leaving the matter entirely to police investigation.

Analysis: Section 629 of the Indian Companies Act, 1956 was treated as an offence that is non-cognizable by reason of section 624 of that Act. A non-cognizable offence is not fit for investigation in the manner contemplated by section 156(3) of the Code of Criminal Procedure, 1898. Even if the earlier direction were to be viewed as one under section 155(2) of the Code, the Magistrate was still required to call for a report and thereafter pass final orders on the complaint. The Magistrate could not simply direct the police to register a case and investigate while withholding disposal of the statutory complaint.

Conclusion: The forwarding of the complaint under section 156(3) was illegal, and the petitioner succeeded on the validity of the impugned order.

Final Conclusion: The order of the court below was set aside and the complaint was directed to be taken back and disposed of in accordance with law.

Ratio Decidendi: A statutory complaint alleging a non-cognizable offence cannot be left for police investigation under section 156(3), and the Magistrate must itself proceed to dispose of the complaint under the proper procedure prescribed by law.

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