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2015 (7) TMI 495 - HC - Companies LawValidity of Summons issued for offence under Section 630 of the Companies Act 1956 - Validity of Board resolution is already in dispute - Held that:- In the summoning order dated 20th April, 2010 the Magistrate has referred to the sale deed in favor of the complainant/respondent company as well as the order dated 1st November, 1990 passed by this Court in CA No. 403/90 in CP 115/86 and also taken into account that the petitioner/accused was entitled to receive ₹ 7000 per month House rent allowance. The Magistrate has further recorder in the summoning order that the respondent company is the owner of the said property and that prima facie it does appear that the petitioner has wrongfully withheld the said property despite not being entitled to and the legal notice was served on the petitioner pointing out the said wrongful act and demanding the vacation of the property. The Magistrate on the basis of the averments in the complaint and the evidence placed on record found sufficient grounds to proceed and accordingly summoned the accused under Section 630 of the Companies Act, 1956. The said order is a legally correct order. It is settled law that the complaint under Section 630 of the Company Law may be maintainable despite of pendency of the civil litigation, but the facts in the present case are distinct as it is doubtful whether the complaint in the existing circumstances when the board resolution itself is under dispute is maintainable whether the proceedings can continue, therefore, instead of dismissal of complaint, I am of the view that the summoning order are liable to be quashed. The trial Court is directed not to further proceed with the complaint, the same is sine die adjourned till final conclusion is arrived out between the parties about the validity of board resolution. The respondent is granted liberty to revive the complaint if such situation would arise i.e. after deciding the issue of validity of board resolution by the Civil Court.
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