HC sets aside order of company court

The Madras High Court has set aside an order of the Company court quashing criminal proceedings against a person pending in a magistrate court here.
A division bench said inherent jurisdiction given to the Company Court under Rule 9 of the Companies (Court) Rules could not be used to stifle a valid prosecution launched against the accused.
The court said every court must in the absence of an express provision in the concerned procedure code be deemed to possess all such inherent powers necessary to do complete justice.
It also said inherent power cannot be exercised in case where there are specific provisions governing the field and that power is intended to be used in very exceptional circumstances. Since the power is inherent in all courts, its exercise should be self-regulated, the court said.

A division bench, comprising Justice R Banumathi and Justice K K Sasidharan, made the observation while setting aside the order of the Company Court quashing the criminal proceedings against one R Vijayakumar pending before the XI Metropolitan Magistrate at Saidapet here.
Vijayakumar took anticipatory bail in April, 2002 and obtained an order to settle the claim made by the Administrator appointed to look after the affairs of Anubhav Group of Companies in March 2005. He took several years to file a petition to absolve him from criminal prosecution. By the time he filed the petition, the trial was in the final stage.

Vijayakumar, without disclosing the material facts, obtained an order absolving him from criminal liability and so the bench said it was of the opinion that the order quashing the prosecution against him was liable to be set aside.