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Showing contexts for: section 630 in Judgment/Texmaco vs . Nathoo Ram/ Case No.566/3/U.S.630 Of ... on 16 March, 2010Matching Fragments
JUDGMENT/Texmaco Vs. Nathoo Ram/ CASE NO.566/3/U.S.630 of Companies Act, 1956//DATED 16.3.2010/Convicted/Page 4 of 35 / /k
4. On the above complaint being filed, the accused was summoned, and thereafter a notice for the offence of section 630 of The Companies Act 1956, was served upon the accused in terms of Section 251 Cr.P.C to which the accused claimed trial.
(2) The Court trying the offence may also order such officer or employee to deliver up or refund, within a time to be fixed by the Court, any such property wrongfully obtained or wrongfully withheld or knowingly misapplied, or in default, to suffer imprisonment for a term which may extend to two years."
10. It is settled law that the scope of inquiry in a proceedings u/s 630 is extremely restricted in law and the case is to be confined within those narrow ambit's without permitting any delay. The provision contained in Section 630 has been purposely enacted by the legislature with the object of providing a summary procedure for retrieving the property of the company. It is the duty of the Court to place a broad and liberal construction on the provision in furtherance of the object and purpose of the legislation JUDGMENT/Texmaco Vs. Nathoo Ram/ CASE NO.566/3/U.S.630 of Companies Act, 1956//DATED 16.3.2010/Convicted/Page 7 of 35 / /k which would suppress the mischief and advance the remedy. In Atul Mathur v. Atul Kalra and another, 1989 (4) SCC 514, it was held that the purpose of enacting Section 630 is to provide speedy relief to a company when its property is wrongfully obtained or wrongfully withheld by an employee or an exemployee.
11. In, 1993 CRI. L. J. 2791 "K. G. K. Nair v. P. C. Juneja"
BOMBAY HIGH COURT It is held that, " The provisions of S. 630 are intended to provide speedy and efficacious redress in cases where company's property is wrongfully withheld ............ ..............................................
(b) ........................ that the scope of the enquiry in a proceeding under Section 630 is extremely restricted in law and, consequently, the parties be confined within those narrow ambits without being permitted to dilate or protract the proceeding through extraneous avenues. "
Again this contention is misfounded. Under section 630 of The Companies Act 1956 there is no requirement of law to give any notice of termination of licence or even any notice separately regarding termination of the services. The fact that the property is given to an JUDGMENT/Texmaco Vs. Nathoo Ram/ CASE NO.566/3/U.S.630 of Companies Act, 1956//DATED 16.3.2010/Convicted/Page of 35 / /k employee by virtue of his being in employment of a company which he wrongfully withholds is sufficient to bring the case within the ambit of section 630 of The Companies Act 1956.