GODREJ R KOTWAL Vs. HOECHST INDIA LTD

JUDGEMENT

(1.) THIS is a petition filed by the petitioner praying this Court to set aside the order dated 29.2 . 1996 passed by the Metropolitan Magistrate of 39th Court, Vile Parle, Mumbai, and the order dated 30.4 . 1997/2.5 . 1997 in Appeal No.47 of 1996 of the Court of Sessions at Greater Mumbai.

(2.) THE respondent no. 1 - Company herein filed a complaint under section 408 of the Indian Penal Code and Section 630 (1) and (2) of the Companies Act, 1956, before the Metropolitan Magistrate, 14th court at Girgaum, Bombay, and the same was taken on file as Case No.24/s of 1990. THE substance of the complaint is that the petitioner/accused, even after retirement on 30.9 . 1987, has been wrongfully withholding the flat entrusted to him during the period of his employment and by so doing the petitioner/accused is causing wrongful gain to himself and wrongfully loss to the Company. However, it is the case of the petitioner/accused that the disputed flat is not the property of the company but he himself had secured the said flat on tenancy basis and that being so there is no question of the company entrusting him as an employee of the company and consequently, there is no question of returning possession of the disputed flat to the company.

(3.) ON the basis of these findings, the learned Magistrate passed the following order :- " The accused is convicted under section 630 of the Companies Act. Accused is sentenced to pay fine of Rs. 500/- in default to suffer S. I. for 10 days in each of the default, i. e. aforesaid period of 71 months and continue to pay the same amount, in default to suffer S. I. for 10 days each upto the date he delivers possession of the disputed flat to the company. The accused is further directed to restore the possession of the disputed flat i. e. flat no. 21 Jamasji Apartment, 32, Sleaster Road, Bombay 400007, to the company on or before 14.4 . 1995 under section 630 (2) of the Company Act. In default of the above, the accused shall undergo sentence of one year S. I. If the fine is paid, an amount of Rs. 25,000/- out of it be paid to the company as compensation. "