Case Note & Summary
The Supreme Court heard appeals by certificate against a judgment of the Calcutta High Court dated 13 August 1968, which had held that the memorandum of appeals from orders of acquittal were barred by Article 114 of the Limitation Act, 1963. The appellant, the Assistant Registrar of Companies, West Bengal, had filed complaints before the Chief Presidency Magistrate, Calcutta, alleging that certain officers/directors of Standard Paint Works (P) Ltd. had committed offences under the Companies Act, 1956 by failing to file annual returns together with annual accounts and balance sheets as required under Section 210 of the Companies Act. The Presidency Magistrate acquitted the accused on 4 April 1968 in all cases. The appellant then presented four petitions of appeal in the High Court on 1 July 1968 through an advocate authorized by a vakalatnama executed by the Assistant Registrar. The High Court dismissed the appeals as time-barred. Before the Supreme Court, the appellant contended that the appeals were filed not under Section 417 of the Code of Criminal Procedure, 1898, but under Section 624B of the Companies Act, 1956, which allegedly conferred an independent right of appeal. The Court examined Section 624B and Section 417 of the Code. It held that Section 624B does not confer any right of appeal from an order of acquittal; it merely empowers the Central Government to direct or authorize any person to present an appeal from an order of acquittal passed by any court other than a High Court. This provision is analogous to Section 417(1) of the Code, which enables the State Government to direct the Public Prosecutor to present an appeal. The Court emphasized that appeal is a creature of statute, and Section 404 of the Code provides that no appeal shall lie except as provided by the Code or other law. Since Section 624B does not create a right of appeal, the right to appeal in cases of acquittal is governed exclusively by Section 417 of the Code. For an acquittal in a case instituted upon complaint, sub-section (3) of Section 417 requires that the complainant obtain special leave from the High Court to appeal, and sub-section (4) mandates that the application for special leave be made within 60 days from the order of acquittal. No such application was made by the appellant. Further, Article 114 of the Limitation Act, 1963 requires the appeal under Section 417(3) to be filed within 30 days from the date of grant of special leave. The appeals were presented on 1 July 1968, more than 60 days after the acquittals, without any grant of special leave. The Supreme Court, per Ray J., held that the appeals were rightly not entertained by the High Court because (a) there was no application for grant of special leave under Section 417(3), (b) the appeals were incompetent without such leave, and (c) they were barred by limitation. The Court also distinguished Section 483 of the Companies Act, which provides a right of appeal in winding-up matters, as a provision that actually confers a right of appeal, unlike Section 624B which only deals with the person through whom an appeal may be presented. Accordingly, the Supreme Court dismissed the appeals.
Headnote
A) Criminal Procedure - Appeals from Acquittal - Special Leave Mandatory - Code of Criminal Procedure, 1898, Sections 417(3), 417(4) - An appeal against an order of acquittal in a case instituted upon complaint requires the complainant to obtain special leave of the High Court under Section 417(3); the application for such leave must be made within 60 days under Section 417(4). In the present case, no application for special leave was made, and therefore the appeals presented on 1 July 1968 against acquittals dated 4 April 1968 were incompetent. Held that the appeals could not be entertained without grant of special leave. (Paras 1-4) B) Companies Law - Appeal Provision - Section 624B Companies Act, 1956 - Section 624B does not confer a right of appeal from an order of acquittal; it only empowers the Central Government to direct a company prosecutor or authorize any person to present an appeal from an order of acquittal passed by any court other than a High Court. This provision is similar to Section 417(1) of the Code of Criminal Procedure which enables the State Government to direct the Public Prosecutor to present an appeal. Held that Section 624B is not a section conferring a right of appeal but only specifies the person through whom appeal may be presented. (Paras 1-4) C) Limitation Law - Appeal Period - Article 114 Limitation Act, 1963 - An appeal under Section 417(3) of the Code of Criminal Procedure must be filed within 30 days from the date of grant of special leave. The orders of acquittal were passed on 4 April 1968 and the petitions of appeal were presented on 1 July 1968 without any application for special leave; therefore the appeals were barred by limitation. Held that the High Court rightly held the memorandum of appeals barred by Article 114. (Paras 1-4) D) Criminal Procedure - Appeals - Section 404 Code of Criminal Procedure, 1898 - Appeals are a creature of statute; no appeal lies from any judgment or order of a criminal court except as provided for by the Code or by any other law for the time being in force. Section 624B of the Companies Act does not fall within such other law as it confers no right of appeal. Held that the right to appeal in cases of acquittal is governed solely by Section 417 of the Code of Criminal Procedure. (Paras 1-4)
Issue of Consideration
Whether Section 624B of the Companies Act, 1956 confers a substantive right of appeal from an order of acquittal passed by a criminal court for offences under the Companies Act, and whether appeals filed by the complainant against acquittal were maintainable under Section 417 of the Code of Criminal Procedure, 1898 without special leave and within limitation.
Final Decision
The Supreme Court dismissed the appeals. It held that the High Court rightly did not entertain the appeals because (a) there was no application for grant of special leave under Section 417(3) of the Code of Criminal Procedure, (b) the appeals were incompetent without such special leave, and (c) they were barred by limitation under Article 114 of the Limitation Act, 1963. Section 624B of the Companies Act was not a section conferring a right of appeal.
Law Points
- Appeal is a creature of statute
- Section 624B Companies Act does not confer right of appeal but only authorizes Central Government to present appeals
- Section 417 CrPC governs appeals from acquittal
- special leave under Section 417(3) CrPC mandatory for complaint cases
- limitation under Article 114 Limitation Act
- Section 404 CrPC prohibits appeals except as provided by Code or other law
