2026 (7) TMI 379

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....any, is under challenge in this revision petition. The aforesaid complaint was about the commission of offence under Section 452 of the Companies Act, 2013 by the first respondent herein, a former employee of the petitioner company. The allegation was that the first respondent wrongfully withheld the residential accommodation provided to her and refused to vacate the premises in spite of repeated demands by the petitioner. 2. The learned Magistrate, upon a preliminary hearing on maintainability, held that as per the amended statutory scheme of the Companies Act, the penalties under Section 452 of the Companies Act are to be adjudicated by the Adjudicating Officer appointed under the Companies Act, and not by any criminal Court. The learn....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cash or in default, to undergo imprisonment for a term which may extend to two years. [Provided that the imprisonment of such officer or employee, as the case may be, shall not be ordered for wrongful possession or withholding of a dwelling unit, if the court is satisfied that the company has not paid to that officer or employee, as the case may be, any amount relating to-- (a) provident fund, pension fund, gratuity fund or any other fund for the welfare of its officers or employees, maintained by the company; (b) compensation or liability for compensation under the Workmen's Compensation Act, 1923 (19 of 1923) in respect of death or disablement.]" 6. The amendment made to the aforesaid provision of law by ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r various Sections like 36, 38, 57, 76A, 86, 127, 147 etc. of the Companies Act for the commission of acts which amount to criminal offences. The aforesaid conclusion of the learned Magistrate is totally unfounded. Penalties are provided under various Sections like 159, 172 etc. of the Companies Act with the objective to enforce rules, encourage compliance and recover damages. Those provisions relating to penalties are generally related to administrative, civil or contractual contexts, and not about the penal consequences of acts which amount to criminal offence. As far as Section 452 of the Companies Act is concerned, it is apparent from the punishment provided thereunder that only a Magistrate not below the rank of Chief Judicial Magistra....