Companis Act, 1956 | S. 630

S. 630. Penalty for wrongful withholding of property.
(1) If any officer or employee of a company -
(a) wrongfully obtains possession of any property of a company; or
(b) having any such property in his possession, wrongfully withholds it or knowingly applies it to purposes other than those expressed or directed in the articles and authorised by this Act,he shall, on the complaint of the company or any creditor or contributory thereof, be punishable with fine which extend to one thousand rupees.
(2) The Court trying the offence may also order such officer or employee to deliver up or refund, within a time to be fixed by the Court, any such property wrongfully obtained or wrongfully withheld or knowingly misapplied, or in default, to suffer imprisonment for a term which may extend to two years.

NOTES:
* Wrongful withholding of compnay’s property – is made punishable with fine only and becomes an offence only when Court directs defaulter to deliver or refund property and such order of Court is not complied with – therefore, s. 630 of Companies act is not a penal provision – principle of strict construction of penal provision – not applicable.
AIR 2003 SC 3157 (B) : 20003 (3) Supreme Today 402 (Lalita Jalan v. Bombay Gas Co. Ltd.)