Section 436 of the Companies Act, 2013 - Offences triable by Special Courts
Updated: Oct 18
Section 436 (1) (a) of the Companies Act, 2013 states that despite any provisions of the Code of Criminal Procedure, 1973 (CrPC) all offences mentioned under section 435 (1) shall be triable only by a Special Court. Clause (b) provides that when a person suspected of committing an offence under this Act is forwarded to a magistrate pursuant to the provisions of Section 167 of the CrPC, the magistrate may authorise the detention of the person in the custody he deems appropriate for a period not to exceed fifteen days in the case of a judicial magistrate and seven days in the case of an executive magistrate. In case the Magistrate feels that keeping the person in custody after or before the time of detention expires is unnecessary, he can orders the individual to be sent to the Special Court. According to clause (c), the Special Court has the same powers pertaining to the accused forwarded to him under the previous clause as a Magistrate has under Section 167 of the CrPC. Lastly, clause (d) allows a Special Court to take cognizance of an offence even though the accused has not been committed to it for trial, after reviewing the police report detailing the facts that constitute an offence under this Act or upon receiving a complaint in that regard.
Section 436 (2) enables a Special Court to try an offence not covered by this Act but with which a person can be charged under the CrPC at the same trial.
Section 436 (3) provides for summary trial. It states that any offence under this Act punishable with imprisonment up to three years may be tried in a summary manner by the Special Court, regardless of any provisions of the CrPC. Imprisonment due to conviction in a summary trial cannot exceed one year. In case at the beginning or during a summary trial, the Special Court feels that the case may require the imposition of imprisonment for a term exceeding one year or that the summary trial is undesirable for any other reason, it can after hearing the parties, record an order and then, recall any witnesses and continue to rehear the case according to the procedure for a regular trial.