Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Section 630 Scope and object of 1956 ·companies Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Companies Act, 1956: Section 630-Scope and object of-Discussed Section 630-Withholding of company's property by legal heirs of employee of company after his death-Action under section 630 by Company-Interim order in civil proceedings that heirs: not to be dispossessed except by due process of law and proceedings under section 630 being penal in nature not under due process of law-Sustainability of-Held: Remedy is available to the Company to obtain possession of property under section 630-There is no necessity to approach civil court-Hence, order unsustainable. Sections 630 and 291-Withholding of company's property by legal heirs of employee of company after his death, despite notices-Plea that on basis of oral assurance by Chairman of Board of Directors heirs continuing in possession of flat until possession of another flat given-Held: No evidence that Chairman was authorized by Board of Directors to give such assurance for and on behalf of the Company Further, act of Chairman not incidental to business of the Company nor a necessity-Assurance given was more of a gratuitous act-~Hence, not binding and enforceable against Company-After service of notice, heirs wrongfully withheld property-Offence under section 630(1) attracted-Order of High Court in civil suit appointing Court Receiver, delivering him symbolic possession of property, and actual possession to heirs as agent of Receiver does not wipe out offence already committed-Fine of Rs 1000-each imposed-Till order stands, no direction under section 630(2) for obtaining possession to be given Board of Directors/Chairman-Power, scope of-Discussed Jurisprudence- 'Due process of law'-Meaning of-Discussed-Words and Phrases. 'A' managing director of the appellant company, was allotted A property of the company-flat 'S' for residential purpose for himself and his family members while he was in service. After' A's death, his wife and daughter, respondent nos. 1 and 2 continued to occupy the flat and notice to vacate the premises was served. Respondent no 1 informed the appellant-company by letter that on basis of assurance she continued in flat 'S' till possession of flat 'BH' was delivered to her regarding which her husband and the appellant-company had entered into sale agreement. Respondents filed suit for specific performance of contract for sale, transfer and handover of possession of flat 'BH' against appellant company and that they not be disposed of flat 'S' until flat 'BH' is handed over to them. Appellant-company filed complaint under section 630 of the Companies Act, 1956 against respondents for wrongfully withholding the property of the Company. High Court passed interim order preventing respondents from being dispossessed from the premises except by due process of law and that proceeding under section 630 being penal in nature, cannot said to be proceedings under due process of law. Appellant company also filed suit for possession of flat 'S'. High court by interim order appointed Court Receiver and gave him symbolic possession of flat 'S' and the respondents were given actual possession of flat as agents of Receiver, during pendency of suit. Thereafter, magistrate dismissed the complaint. Appellant-company filed an appeal which was also dismissed Hence the present appeal. |
Judge | Hon'ble Mr. Justice P.P. Naolekar |
Neutral Citation | 2005 INSC 275 |
Petitioner | Shubh Shanti Services Ltd. |
Respondent | Manjula S. Agarwalla And Ors |
SCR | [2005] Supp. (1) S.C.R. 264 |
Judgement Date | 2005-05-11 |
Case Number | 712 |
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