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2005 (5) TMI 324 - SC - Companies LawWhether an employee, past employee or a legal heir or family member of such an employee and only if such named person does not comply with the order of the court, he would be liable to be sentenced which may extend to imprisonment for two years? Whether the possession of respondents of the property belonging to the company, namely, the Sonmarg flat, after the death of Shri S.C. Agarwalla, is unlawful and unauthorized and therefore wrongful? Held that:- Appeal partly allowed. After the death of Shri Agarwalla on 2-11-1992, the respondents 1 and 2 remained in possession of the company’s Sonmarg flat. Admittedly they were not in employment of the company nor company has authorized them to remain in possession of the same particularly after notice dated 9-11-1994 to vacate the premises and hand over the possession to the company. The possession of the company’s flat by the Respondents, after the service of notice to vacate the premises by the company, is wrongful withholding of the property of the company. The respondents by having wrongfully withheld the possession of the company’s flat and not delivering the property to the company, have committed an offence. The interim order of the High Court dated 16-11-1998 in the civil suit filed by the appellant-Company does not wipe out the offence committed already for which criminal complaint was filed. Subsequent to that order, the possession may not be wrongful, but on the date of complaint and till the date of that order, the Respondents did wrongfully withhold that property, attracting the offence under section 630(1). Having regard to the factual position of the case, we think that imposition of fine of Rupees One thousand each would be a proper punishment for wrongful withholding the Sonmarg flat.
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