SPECIAL COURTS UNDER COMPANIES ACT, 2013

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.

Constitution:

The Special court will be constituted within the jurisdiction of every High court and the Central govt will appoint a Single Judge in consultation with the Chief justice of the High Court of that jurisdiction. The Judge of a “Special court” must be a person holding an office of a Sessions judge or an Additional Sessions judge.

Offences triable:

In spite of the provisions of Code of Criminal Procedure the following offences are triable by, the Special courts

• All offences under this Act shall be tried only by the Special court within whose jurisdiction the Registered office of the company is situated.
• An accused or a suspect under this act is forwarded and is detained by the Magistrate for a period of 15 days (Judicial Magistrate) or 7 days (Executive Magistrate) and if the magistrate feels that such detention is unnecessary beyond upon or before the expiry of the period, he should order to forward such person to the concerned Special Court.
• The special court has the discretion to exercise the power vested with the Magistrate in relation to the person forwarded to him.

• The Special court may, based on the report of the Police, of the facts constituting an offence under this act or upon complaint in that behalf, take cognizance of the offence, without taking the accused for trial.

• The Special court has the power to try an offence other than an offence under the Companies Act, 2013 with which the accused may be tried under the Code of Criminal Procedure 1973 at the same trial.
• Overriding the provisions of CrPC, the Special court has the power to try in a summary way, the offences under this act which are punishable with imprisonment for a term not exceeding 3 years.
• In case of any verdict in a summary trial, the imprisonment cannot exceed the one year.
• If, at any time the Special court feels that the said case cannot be tried in summary way or the imprisonment should exceed one year, the Special court should after hearing the parties, record an order and thereafter recall any witnesses and rehear the case in accordance with procedure for regular trial.

The high court may exercise the powers relating to “Appeals, Reference & revision” given to it under Chapter 29 & 30 of the CrPC, 1973 in relation to a Special Court under its jurisdiction, as if the Special court is a Sessions court under its jurisdiction.

The provision of CrPC applies to the proceedings before a Special Court as if it applies to a Sessions court and the prosecutor in a Special court is deemed to be a Public Prosecutor.

Compounding under Special courts:
The offences under the act, for which the punishment is “Imprisonment or fine, or with imprisonment or fine or with both “are compoundable only with the permission of the Special court.

In this Article, the provisions relating to the Establishment and powers of the Special courts are briefed. As of now, these provisions are not notified by the Ministry.