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1960 Supreme(P&H) 138

PUNJAB & HARYANA HIGH COURT
D.Falshaw and Gurdev Singh JJ.
State
Versus
Gurdial Singh Gill
Criminal Appeal No. 10 of 1960,
Decided On : AUGUST 18, 1960

The magistrate has the power to adjourn a case or proceed with the case despite the absence of the complainant.

Headnote:

CRIMINAL LAW - COMPANIES ACT - DEFAULT IN FILING ANNUAL BALANCE SHEET AND RETURN - CONVICTION OF DIRECTORS ON THEIR ADMISSION OF GUILT - ACQUITTAL BY SESSIONS JUDGE ON GROUND OF ABSENCE OF COMPLAINANT - APPEAL BY STATE - HELD, ACQUITTAL BY SESSIONS JUDGE WITHOUT JURISDICTION - MAGISTRATE HAD POWER TO ADJOURN CASE OR PROCEED WITH CASE DESPITE ABSENCE OF COMPLAINANT - CONVICTION RESTORED.

Fact of the Case:

The Registrar of Companies filed complaints against a company and its directors for failing to file the annual balance sheet and return. The directors pleaded guilty and were convicted by the magistrate. On appeal, the sessions judge acquitted the directors on the ground that the complainant was absent at the hearing. The state appealed.

Finding of the Court:

The court held that the sessions judge had no jurisdiction to acquit the directors. The magistrate had the power to adjourn the case or proceed with the case despite the absence of the complainant. The conviction of the directors was restored.

Issues: 1. Whether the sessions judge had jurisdiction to acquit the directors in the absence of the complainant? 2. Whether the magistrate had the power to adjourn the case or proceed with the case despite the absence of the complainant?

Ratio Decidendi: 1. The court held that the sessions judge had no jurisdiction to acquit the directors in the absence of the complainant. Section 247 of the Code of Criminal Procedure (CrPC) provides that the magistrate shall acquit the accused if the complainant is absent on the day appointed for the appearance of the accused, unless the magistrate thinks it proper to adjourn the hearing. However, the proviso to Section 247 empowers the magistrate to dispense with the attendance of the complainant and proceed with the case. 2. The court held that the magistrate had the power to adjourn the case or proceed with the case despite the absence of the complainant. The magistrate could have exercised this power under the proviso to Section 247 of the CrPC.

Final Decision: The court accepted the appeals and set aside the order of the sessions judge, restoring that of the additional district magistrate in both the cases. The directors were convicted and sentenced to pay fines or undergo imprisonment in default of payment.

Judgment

Gurdev Singh, J.

1. This order will dispose of two Criminal Appeals Nos. 10 and 11 of 1960 as the points arising for decision in both the cases are the same.

2. On 18th December, 1958, the Registrar of Companies Punjab and Himachal Pradesh, instituted two complaints in the Court of Additional District Magistrate, Jullundur, under Sections 220/162 and 159/162 of the Companies Act against Messrs Malwa Agricultural Society Ltd. and its four Directors, namely, Gurdial Singh Gill, Dr. Autar Singh Gill, Dr. Iqbal Singh and Shri Jagdish Singh, (respondents before us). It was alleged that the Company and its Directors had committed default and failed to file the annual balance-sheet and the return, which should have been furnished to the Registrar at the latest by 22nd October 1958, in spite of notices issued to each of them individually.

3. On 3rd June 1959 when the summary trial in both the cases commenced all the four Directors of the Company appeared and pleaded guilty, Thereupon the learned Additional District Magistrate convicted each of the Directors in both the cases. In the case in which they were prosecuted under sections 220/162 of the Companies Act, Gurdial Singh respondent, Managing Director, was sentenced to a fine of Rs. 200/- while the other three Directors Dr. Autar Singh, Dr. Iqbal Singh and Shri Jagdish Singh were ordered to pay a fine of Rs. 100/- each. In default of payment of fine Gurdial Singh was directed to undergo two months simple imprisonment and the remaining Directors to one months imprisonment of the same nature. In the other case under Sections 159/162, Companies Act, a fine of Rs. 100/- was imposed upon Gurdial Singh and Rs. 50/- on each of the other three Directors. In default of payment Gurdial Singh was ordered to undergo one months and others to 15 days simple imprisonment. The learned Magistrate, however, passed no order with regard to the acquittal or conviction of the Malwa Agricultural Society Ltd. in any of the two cases

4. Despite the fact that all the Directors of the Company had been convicted on their admission of guilt, they went up in appeal in both the cases. The learned Sessions Judge, Jullundur, while noting that the accused had been convicted on their own admission of guilt accepted their appeals, being of the opinion that since the Registrar of the Companies (complainant in the case) was not present at the hearing in the trial Court, they were entitled to acquittal and the Magistrate had no power to convict them. Aggrieved with this order of the learned Sessions Judge dated 5th October 1959 in both the cases referred to above, the State has come up to this Court in appeal.

5. On going through the record we find that the order of the learned Sessions Judge acquitting the accused in both the cases is not only against the provisions of the law but also without jurisdiction. The trial of the present respondents by the Magistrate was a summary one under Section 260, Crl. P. C. Section 414 of the Code lays down that in such a case there shall be no appeal by a convicted person if the Magistrate acting under Section 260 passes a sentence of fine not exceeding Rs. 200/-,

The various sentences awarded to the accused in the two cases which have given raise to these appeals have been set out above. Guidial Singh (respondent), the Managing Director of the Company, in one case was sentenced to pay a fine of Rs. 200/- and in the other Rs. 100/-. Since sentences of none of the accused exceeded Rs. 200/-it is obvious that no appeal lay against the orders of their conviction. The learned Sessions Judge thus acted without jurisdiction in entertaining the appeals and passing the order acquitting the present respondents.

6. Even on merits the order of the learned Sessions Judge cannot be sustained. He was apparently labouring under the impression that once the complainant in a summons case was found to be absent the Magistrate had no option but to dismiss the complaint and acquit the accused. T


















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