Companies Act, 1956-Section 630:
Wrongful withholding of property of company--Petition against family
members of deceased employee-Maintainability of-Held: Such petition is
maintainable and the accused are liable to be prosecuted under Section 630
since all those who come in possession of premises with express and implied
consent of employee including his family members and do not vaca/e the
premises would be withholding delivery of property to company-It would
also include anyone inducted in possession of property by such persons and
who continue to withhold the property-Code of Criminal Procedure, 1973,
Section 482.
Object of-Discussed.
Interpretation of Statutes-Construction of-Object a/Section 630 being
to retrieve property of company thus not a penal provision as normal attributes
of crime nnd punishment not present-Thus principle of strict construction
relating to criminal statutes not applicable-Companies Act, 1956, Section
630.
Constitution of India, 1950-Article 2 I-Protection of life and personal
liberty-Wrongful withholding of property by employee or anyone claiming
through him of such property-Penalty and prosecution under Section 630-
Violation of Article 2 I-Held: Possession of properties by employee or anyone
claiming through him of such property is unlawful and recovery of the same
on the pain of being committed to a prison or payment of fine not unreasonable
or irrational or unfair to attract rigour of Article 21-Companies Act, 1956,
Section 630.
Words and Phrases:
"Employee or anyone" claiming through him-Meaning of in the context
of Section 630 of the Companies Act, 1956.
"Withholding "-Meaning of.