A Director of a Limited Company was prosecuted before Metropolitan Magistrate for certain offences involving a punishment up to 3 years imprisonment under the provisions Companies Act, 2013. The Director contended that M

The moot point under Section 436 of the Companies Act, 2013 is that the offences under the Companies Act, 2013, which are punishable with imprisonment of two years or more are triable only by the Special Court established under section 435 of the Companies Act, 2013. In terms of Sec 435(2)(b) of the Act, it is only in the case of offences punishable with imprisonment of a term less than two years, the provision empowers a Judicial Magistrate of First class or a Metropolitan Magistrate to try the offence. As per Sec 435(2) (a) of the Act, only a single judge holding office as Session Judge or Additional Session Judge, is authorised to hear cases involving offences punishable under this Act with imprisonment of two years or more. The Special Court need not be an altogether new Court established for this purpose. It could be an existing court designated as a Special Court by Notification issued under section 435 of the Companies Act, 2013. In the given case, the Director is being prosecuted by a Metropolitan Magistrate for offences involving punishment upto 3 yrs and therefore the said Metropolitan Magistrate is not empowered under the Act for hearing such a case. Therefore, the contention of the director is valid.