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2018 Supreme(Guj) 1112

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SONIA GOKANI, J.
Dhrangadra Chemical Works Ltd. - Petitioners
Versus
Habibbhai Jummabhai Jam - Respondents
Criminal Appeal No. 1384 of 2017
Decided On : 18-04-2018

Advocates Appeared:
For the Petitioners: Mr. Shriraj Khambete, Nanavati Associates.
For the Respondents: Mr. Rasesh H. Parikh With Mr. Hemang H. Parikh Public Prosecutor.

Headnote:Companies Act, 1956 – Section 630 – This present criminal appeal is filed challenging order by appellate authority – as per facts of the case a quarter was given employee of company but not vacating on retirement – court while quashing the said order held that conviction of accused under sec. 630 of act is proper.

JUDGMENT :

1. Being aggrieved and dissatisfied with the judgment and order dated 15.02.2017, rendered by the learned 2nd Additional Sessions Judge, Dhrangadhra, in Criminal Appeal No. 14 of 2016 in the matter under Section 630 of the Indian Companies Act, 1956, the appellant has moved this Court under Section 378 of the Code of Criminal Procedure, 1973 (for short, ‘the Code’), whereby, the appellate Court quashed and set aside the judgment and order of the learned Additional Chief Judicial Magistrate, Dated: 07.04.2016, rendered in Criminal Case No. 903 of 2013.

Factual Matrix:

2. The facts in nutshell, which would be necessary for adjudicating the dispute between the parties, are as follows.

2.1 The father of Respondent No.1, namely Shri. Jummabhai Mamadbhai Jam, served as a driver in the appellant-Company. He being in employment of the Company was allotted a residential quarter bearing No. W-34 and he resided at the said quarter during the course of his employment. Father of Respondent No.1 passed away on 24.08.1979, while he was in the service of the appellant-Company, and therefore, Respondent No.1, who is son of the late Shri, Jummabhai, had been given the compassionate appointment in place of his father with effect from 09.12.1979.

2.2 The residential quarter No. W-34 allotted to father of Respondent No.1 was subsequently allotted officially to him, who continued to reside in the said quarter, since, then.

2.3 On 18.07.2007, the appellant-Company issued a letter to Respondent No.1 stating therein that the original License Deed qua which the quarter No. W-34 was first allotted is cancelled on 21.08.2007 and if, Respondent No.1 wish to continue in the very quarter, a fresh license deed would be required to be executed before 21.08.2007. Respondent No.1 showed his inclination to continue in the said quarter, and therefore, he was re-allotted the quarter No. W-34. Such re-allotment was done vide License Deed dated 30.07.2007. It was, thus, on account of his being in Company’s employment that he had been given the quarter No. W-4.

2.4 The employment of the respondent No.1 came to an end on 17.08.2011, on his attaining the age of superannuation, and as per the conditions of the License Deed dated 30.07.2007, Respondent No.1 was bound to vacate the said quarter No. W-34 and to hand over the vacant and peaceful possession of the same to the appellant- Company. However, he chose not to do so and continued the possession of quarter No. W-34.

It is alleged that Respondent No.1 was fully aware that he was needed to hand over the vacant and peaceful possession of quarter No. W-34 to the appellant-company on his attaining superannuation and yet, he has not done the same till date.

2.5 Respondent No.1 since chose not to vacate the quarter No. W-34, a legal notice came to be issued by the appellant-Company on 27.05.2013, whereby, it directed Respondent No.1 to vacate the said quarter within 15 days. Eventually, when no heed was paid, the appellant-Company preferred the criminal complaint under Section 630 of the Companies Act before learned Chief Judicial Magistrate, Dhrangadhra. The trial Court after following the detailed procedure and on availing parties due opportunity, rendered judgment and order on 08.04.2016 and held Respondent No.1 guilty and directed him to vacate the quarter No. W-34 within a period of one month and to hand over the peaceful and vacant possession of the same to the appellant-Company.

2.6 It is the case of the appellant-Company that Respondent No.1 chose not to implement the order of the trial Court and on the contrary, he preferred appeal being Criminal Appeal No.14 of 2016 before the learned Sessions Judge, on the ground that the quarter No. W-34 was never in his possession and that his stepmother, the Second wife of his father and her son, namely Anwar Jumma Jam, resided at the quarter and his stepbrother had maintained the possession of the same. He also maintained that his step brother was residing with his father a











































































































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