Section 630 of the Companies Act applies to past employees and their heirs, allowing prosecution for wrongful withholding of company property.

JUDGMENT :

M. K. Thakker, J.

1. This appeal is filed under section 378(4) of the Code of Criminal Procedure, 1973 (hereinafter referred to as “Cr.P.C”) challenging the judgment and order of acquittal dated 13.10.2023 passed by learned 5th Additional District and Sessions Judge, Kheda in Criminal Appeal No. 40 of 2021 acquitting the respondent-accused from the charges and setting aside the judgment and order passed by the learned Judicial Magistrate First Class, Nadiad dated 18.02.2021 in Criminal Case No.202 of 2010.

2. The facts in a nut shell arising from the present case is as under:

2.1. The complainant company is situated at Nadiad and complainant is the senior officer serving in the complainant company. The company is having its residence and it is allotted to its officers or employees till their service in the complainant Mill.

2.2. The father of the respondent-accused was serving in New Shorok Mill which is one of the division of the complainant company situated at Asarwa and the father of the respondent-accused was allotted room no. 87 till his service period and necessary leave and licence agreement was executed between the complainant and the deceased father of the accused on certain conditions. On allotting room no.87 deceased Dahyabhai Somabhai started to use the said room thereafter, deceased Dahyabhai had voluntarily resigned on 01.07.1978 from the mill and despite he was under obligation to hand over vacant and peaceful possession he did not vacate the premises. Therefore, notice was issued by the complainant company to hand over the possession on the deceased Dahyabhai Somabhai and despite the service of the same, he did not hand over the possession of room no.87 to the complainant. Thus, complainant company had filed Civil Suit being Civil Suit No.48 of 1980 in Civil Court, Nadiad and decree was passed in favour of the complainant. The said judgment and decree was challenged before District Court, Nadiad who has also confirmed the judgment and decree of the learned trial court. Against that order, deceased Dahyabhai filed Second Appeal before this Court which resulted in favour of the respondent-accused and the judgment and order of the both the court below was set aside and this Court has remanded the matter back to the Civil Court, Nadiad with direction that suit was to be refiled as de novo. The complainant company has withdrawn this suit with liberty to file afresh on 29.06.1984. Thereafter, the complainant company filed criminal complaint under section 630 of the Companies Act, 1956 against Dahyabhai Somabhai in the year 1991.

2.3. On 29.11.2005 said Dahyabhai Somabhai Raval expired and due to death of Dahyabhai Somabhai Raval the complaint came to be abated. After the death of the father the respondent-accused, who is the legal heair (son) of the deceased employee, continued to be in wrongful possession of the said room no.87. Thereafter, on 12.01.2010 complainant company filed criminal case being Criminal Case No.202 of 2010 before the Additional Chief Judicial Magistrate, Nadiad under section 630 of the Companies Act, 1956 seeking prayer to deliver the property to the appellant company as per section 630(2) of the Companies Act against accused no.1 Naranbhai Dahyabhai Raval and accused no.2 Babubhai Dahyabhai Raval who continued to be in wrongful possession of Room No.87. Accused no.2 namely Babubhai Dahyabhai Raval passed away during the pendency of the criminal case therefore, trial qua him was abated.

2.4. On 18.02.2021 learned trial court has passed the judgment and order convicting the accused no.1 for the offence punshibale under section 630(b) of the Companies Act imposing the fine of Rs.1,000/- and in default to pay the same, the accused was ordered to undergo simple imprisonment of ten days. It was further directed to the accused no.1, under section 630(2) of the Companies Act, to hand over the possession of room no.87 to the appellate company on or before 18.04.2021 and in default it was ordered to