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DECLARATION........................................................................................................................1
ACKNOWLEDGEMENTS.......................................................................................................2
SCOPE OF STUDY...................................................................................................................5
OBJECTIVES............................................................................................................................5
RESEARCH METHODOLOGY...............................................................................................5
INTRODUCTION......................................................................................................................6
Purpose...................................................................................................................................7
Offences Triable.....................................................................................................................9
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SPECIAL POWER OF SPECIAL COURT.............................................................................14
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16
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INTRODUCTION
The innocuous little Chapter XXVIII (dealing with Special Courts) has been one of the least
discussed and debated chapters of the Companies Bill, 2012. Neither the Parliament nor the
media appears to have paid any attention to it.
Special courts are one most commendable constitute introduced by this Act. This is trend
recently to constitute special courts for every single legal constitute. The main reason for
establishment of such special court is technicalities involved in these technical matters. The
Companies Act, 2013 has proposed to form "Special courts" for the purpose of providing
speedy trial and disposal of offences. Chapter XXVIII of the Companies Act, 2013, deals
with special courts.
The Central Government may, for the purpose of providing speedy trial of offences under this
Act establish or designate as many Special Courts as may be necessary. A Special Court is a
single judge Court who shall be appointed by the Central Government with the concurrence
of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is
working.
A person shall not be qualified for appointment as a judge of a Special Court unless she is,
immediately before such appointment holding office of a Sessions Judge or an Additional
Sessions Judge.
Section 436 sets out the offences which are triable by special courts. As per section 436(1)(a)
all offences under sub-section (1) of section 435 of the Companies Act, 2013 shall be triable
by the special court for the area in which the registered office of the company in relation to
which the offence is committed or where there are more Special Courts than one for such
area, by such one of them as may be specified in this behalf by the High Court concerned.
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WHAT IS A SPECIAL COURT UNDER THE BILL?
A court established or designated by the Central Government by notification under the Act.1
PURPOSE
The purpose of establishing a special court appears to be to provide a speedy trial of
offences, punishable under the Companies Act, 2013, which are punishable with
imprisonment of 2 years or more, the Ministry of Corporate Affairs has notified the
provisions dealing with Special Courts with effect from 18 May 2016. The intention behind
setting up these courts is to let magistrate courts try minor violations, and that graver offences
should be dealt by Special Courts.
1 Jeffrey. N. Gordon & Mark. J. Roe, Concept of special court (Cambridge University Press,
Cambridge, 2014), 305 (Last visited on 03.04.2017)
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person may thereafter be forwarded to the Special Court having jurisdiction.2
Intentionally giving false evidence upon any Any person giving 449
examination on oath or solemn affirmation, such false evidence
authorised under the Companies Act, 2013
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Offence Who is Punishable? Section
OFFENCES TRIABLE
As per the provisions of the Companies Act, 2013, following offences are triable by Special
Courts:
(i) offences for which the Companies Act, 2013, provides for imprisonment of 2 years or more;
(ii)cases forwarded by a Magistrate (where he thinks detention is unnecessary) for any offence
committed under the Companies Act, 2013. This provision will come into play when a
person is arrested and detained in custody, and it appears that the investigation cannot be
completed within the period of 24 hours as required under the Code of Criminal
Procedure, 1973 (CrPC) and there are grounds for believing that the accusation or
information is well-founded, and detention is authorized by Magistrate for a period not
exceeding 15 days (if ordered by Judicial Magistrate) or 7 days (if ordered by Executive
Magistrate), as the case may be. In such cases, the Special Court has the same power as
the Magistrate having jurisdiction to try such case;
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(iii) take cognizance of an offence under the Companies Act, 2013, without the accused being
committed to it for trial upon: (a) perusal of the police report of the facts constituting
such offence, or (b) if a complaint has been filed in that behalf;
(iv) try at the same trial an offence for which an accused may be charged under CrPC in
addition to an offence under the Companies Act, 2013;
(v)if the Special Court thinks fit, it may try in a summary way, any offence under the Companies
Act, 2013, which is punishable with imprisonment for a term not exceeding 3 years,
provided that in the case of any conviction in such trial, person cannot be sentenced for
imprisonment for a term exceeding 1 year.
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non-payment of dividend on complaint in writing by a person authorised by the Securities
and Exchange Board of India. Where the complainant is the Registrar or a person authorised
by the Central Government, the presence of such officer before the Court trying the offence
shall not be necessary. The court may require personal attendance of these complainants at
the trial.4
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8. 2nd Special Court, Calcutta State of West Bengal
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imprisonment or fine or with both, shall be compoundable with the permission of the Special
Court. Any offence which is punishable under this Act, with imprisonment only, or with
imprisonment and also with fine, shall not be compoundable.
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COMPENSATION FOR ACCUSATION WITHOUT
REASONABLE CAUSE (SECTION 445)
The provision of Section 250 of the Code of Criminal Procedure, 1973 shall apply mutatis
mutandis to compensation for accusation without reasonable cause before the Special Court
or the Court of Session.6
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CONCLUSION
ConstitutionofatribunalisbyitselfhighlydebatableintheentireschemeoftheIndian
Constitution. Constituting a special court to administer criminal justice is not only
unnecessarybutalsoharmfultotheintegrityofthejudiciary.Wehavetopullupouractand
believethatsystemshaveloopholes,deficienciesandshortcomings.Theanswertothatisnot
inallcasescreatinganalternatesystem.
Anadditionalcauseforworryisthatthiswholeconceptdoesnotappeartobedebatedinthe
Parliament.GiventhemannerinwhichtheBillwaspassedinthelowerhouse,averyin
depthanalysisoftheseprovisionsiswarrantedandwouldbeofvitalconsequence.
Politiciansandparticularlythegovernmentsofthepasthaveshownlittlerespectfortheletter
of thelaw.Itwouldbefoolishtoallowtheexecutiveorentrustitwithcreatingaparallel
criminaljusticeadministeringsystemwithpowersforprovisionofsummaryjustice.Criminal
justiceadministrationshouldhavesacrosanctpositioninthejudicialsystem.Itcannotbe
belittledandtamperedwithinthisfashion.
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REFERENCES
BOOKS:
DateyV.S.,StudentsGuidetoCorporateLaws,(Taxmann,5thEd.)
K.Majumdar,Dr.G.K.KapoorCompanyLaw&Practice,(Taxmann,5thEd.)
WEBSITES:
https://www.legistify.com/blogs/view_detail/100-special-courts-under-the-companies-
act-2013-notified
http://www.legallyindia.com/views/entry/special-courts-under-the-companies-act-
2013-notified-corpcomms-elp-in-com
http://www.companiesact.in/Companies-Act-2013/New-Concept-Detail/6/Special
%20Courts
http://ebook.mca.gov.in/default.aspx
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