AVTAR SINGH Vs. THE STATE

JUDGEMENT

(1.) THIS order will dispose of two criminal revision petitions Nos. 747 and 807 of 1962, in which the common question of law arising for consideration is:

(2.) THE provision relating to offences under the Companies Act are contained in Sections 621 to 631 of that Act. Section 630, headed as "Penalty for wrongful withholding of property", is in the following words:

(3.) SECTION 624 -A of the Act contemplates the appointment of the Company Prosecutors by the Central Government for the conduct of prosecutions arising out of the Act. It is thus obvious that if the Petitioner was prosecuted under Section 630 of the Companies Act, the Court could not take cognizance of the case against him merely on a police report, nor could the police investigate into the matter, the offence being non -cognizable. It is further evident that on conviction under Section 630 of the Companies Act, the maximum punishment to which the Petitioner would be liable is a fine of Rs. 1,000 only and no imprisonment. On the other hand, if an offence under Section 409 of the Indian Penal Code is proved against him, he can be sentenced to ten years' rigorous imprisonment besides being liable to fine without any limit. There can thus be no doubt that if the Petitioner is not prosecuted under Section 630 of the Companies Act, but tried for an offence under Section 409 of the Indian Penal Code, he would be at a great disadvantage.