J K BOMBAY LIMITED Vs. BHARTI MATHA MISHRA

JUDGEMENT

(1.) Leave granted

(2.) Whether the family members of an employee or an ex-employee of a company can be proceeded with in a criminal Court, convicted and sentenced for the commission of offence under Section 630 of the Companies Act (hereinafter referred to as "the Act") is the question of law to be determined by us in this appeal. Relying upon the judgment of this Court in Abilash Vinodkumar Jain (Smt.) vs. Cox and Kings (India) Ltd., (1995) 3 SCC 732 it has been argued on behalf of the company that the expression "officer or employee" appearing in Section 630 of the Act would include all his family members.

(3.) The admitted facts of the case are that one Mata Harsh Mishra, who is the husband of respondent No. 1 and father of respondent No. 2, joined the employment of the appellant company as Trainee Supervisor in its plant. He was allotted Flat No. 8 in Anil Co-operative Housing Society Ltd., and possession delivered to him for the purpose of his residence during the course of employment while he was in the service of the company. It was made clear to the said employee that he was to remain in possession of the premises only during his employment with the company and had to vacate the flat as and when he ceased to be the employee of the company. The said Shri Mishra tendered his resignation on 31st March, 1994 which was accepted with effect 4-4-1994 vide letter of the company dated 23-4-1994. He was directed to hand over the charge of his work to the Production Manager and vacate the flat in his possession given to him by virtue of his employment. Despite notice, the erstwhile employee did not vacate the premises on the pretext that as he had not been paid his dues, he had a right to remain in occupation. On 16-5-1995, a complaint under Section 630 of the Act was filed by the appellant in the Court of Judicial Magistrate, Thane, against said Shri Mishra, its ex-employee and the respondents 1 and 2 herein. The respondents herein moved an application in the Court of the Magistrate for recall of the order of process. Their application was rejected by the Court of the Judicial Magistrate, First Class, Thane on 13-4-1995. Revision petition filed by them was also dismissed by the Additional Sessions Judge, Thane which compelled the aforesaid respondents to file writ petition in the High Court of Bombay which has been allowed vide the order impugned herein.