Karnataka High Court
Indiranagar Chit Funds And ... vs Sri Rabindra Kumar on 18 March, 2021
Author: H.P.Sandesh
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF MARCH, 2021
BEFORE
THE HON'BLE MR. JUSTICE H.P. SANDESH
CRIMINAL PETITION NO.4902/2020
C/W.
CRIMINAL PETITION NO.4166/2020
CRIMINAL PETITION NO.4887/2020
CRIMINAL PETITION NO.4888/2020
CRIMINAL PETITION NO.4889/2020
CRIMINAL PETITION NO.4890/2020
CRIMINAL PETITION NO.4892/2020
CRIMINAL PETITION NO.4894/2020
CRIMINAL PETITION NO.4895/2020
CRIMINAL PETITION NO.4897/2020
CRIMINAL PETITION NO.4900/2020
CRIMINAL PETITION NO.4901/2020
CRIMINAL PETITION NO.4904/2020
CRIMINAL PETITION NO.4905/2020
CRIMINAL PETITION NO.4907/2020
CRIMINAL PETITION NO.4908/2020
IN CRIMINAL PETITION NO.4902/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
4. SRI VAISHAK BABU
No.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SRI RABINDRA KUMAR
S/O N.PRASAD
AGED ABOUT 40 YEARS
R/AT No.3/5, 9TH CROSS
PAMPA EXTENSION, HEBBAL
BENGALURU - 560024
... RESPONDENT
(BY SRI SHANKARAIAH B., AND SRI AMIT KUMAR, ADVOCATES)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.20540/2019 PENDING BEFORE THE XVIII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
3
IN CRIMINAL PETITION NO.4166/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SRI BHASKAR H
S/O SRI HANUMANTHARAJU M.
AGED ABOUT 47 YEARS
RESIDING AT PRASIDDI VINAYAKA AIR CONDITIONER
NO.3063, PRASIDDI HOUSE, 11TH CROSS
4
GAYATHRI NAGAR, RAJAJINAGAR
BENGALURU - 560021
... RESPONDENT
(BY SRI G.H.SRINIVAS, ADVOCATES)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.2644/2019 PENDING BEFORE THE XXXVIII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4887/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING
COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
5
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SHOBA RAMESH
W/O DR.A.C.RAMESH
AGED ABOUT 56 YEARS
RESIDING AT No.592
10TH ' A' MAIN, 5TH BLOCK
JAYANAGAR, BENGALURU - 560041
... RESPONDENT
(BY SRI H.N. SHASHIDHARA, ADVOCATES-(THROUGH V.C.))
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.9186/2019 PENDING BEFORE THE XXII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4888/2020
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
6
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
HARISHKUMAR T.G.,
S/O MR. T.P.GANAPATHY
RESIDING AT 1611, B BLOCK
NEAR UCO BANK, SAHAKARANAGAR
BENGALURU - 560092
... RESPONDENT
(BY SMT.SUMA G., ADV. FOR SRI DHIRENDRA N.KATTI, ADV.)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.10908/2019 PENDING BEFORE THE XVIII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4889/2020:
BETWEEN:
INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
7
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
... PETITIONER
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SRI SANDEEP M.J.
S/O SRI JAYARAM
AGED ABOUT 35 YEARS
RESIDING AT No.500
'GOKULA NILAYA' JYOTHI LAYOUT
1ST CROSS,VINAYAKA LAYOUT
BASAVANAPURA MAIN ROAD
BENGALURU - 560036
... RESPONDENT
(BY SRI C. SHANKAR REDDY, ADVOCATE-(THROUGH V.C.))
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.53860/2019 PENDING BEFORE THE LVII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4890/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
8
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING
COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SHOBA RAMESH
W/O DR.A.C.RAMESH
AGED ABOUT 56 YEARS
RESIDING AT No.592,
10TH ' A' MAIN, 5TH BLOCK,
JAYANAGAR, BENGALURU - 560041
... RESPONDENT
(BY SRI H.N. SHASHIDHARA, ADVOCATES-(THROUGH V.C.))
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.9185/2019 PENDING BEFORE THE XXII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
9
IN CRIMINAL PETITION NO.4892/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI PADMAVILAS KUTTAN
MANAGING DIRECTOR
No.258, P.B.NO.3803
6TH CROSS, I STAGE, INDIRANAGARA
BENGALURU-560038
3. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
4. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
10
AND:
SRI B.JAYAPPA
S/O BASAPPA
AGED ABOUT 58 YEARS
No.740, 10TH MAIN ROAD
VINAYAKA LAYOUT
NAGARABHAVI 2ND STAGE
BENGALURU - 560072
... RESPONDENT
(BY SRI H.M.RUDRA KUMAR, ADVOCATES)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.1969/2019 PENDING BEFORE THE XXII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4894/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
11
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
4. SRI VAISHAK BABU
S/O CHANDRASHEKAR BABU
AUTHORISED REPRESENTATIVE OF
M/S. INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, I STAGE, INDIRANAGARA
P.B.NO.3803, BENGALURU - 560038
5. SMT. VANITHA BABU
W/O CHANDRASHEKAR BABU
AUTHORISED REPRESENTATIVE OF
M/S. INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, I STAGE, INDIRANAGARA
P.B.NO.3803, BENGALURU - 560038
ALSO AT No.33, PKAN BUILDING
OPP: BDA COMPLEX, 1ST STAGE
INDIRANAGARA, BENGALURU-560038.
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SMT.PALLAVI PRABHU
W/O RAHUL SHEKAR
AGED ABOUT 34 YEARS
RESIDING AT No.15, 2ND FLOOR
1ST CROSS, 9TH MAIN, CHAIRMANS LAYOUT
HRBR 1ST BLOCK, BANASWADI FIRE STATION
BENGALURU - 560043.
... RESPONDENT
(RESPONDENT SERVED)
12
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.55615/2019 PENDING BEFORE THE LVII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4895/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
13
AND:
PRASIDDI VINAYAKA AIR CONDITIONER
A PROPRIETORSHIP CONCERN AND
REPRESENTED BY ITS PROPRIETOR SMT.G.H.NAGAMANI
No.3063, PRASIDDI HOUSE, 11TH CROSS
GAYATHRI NAGAR, RAJAJINAGAR
BENGALURU - 560021.
... RESPONDENT
(BY SRI G.H.SRINIVAS, ADVOCATE)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.2645/2019 PENDING BEFORE THE XII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4897/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
14
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
MR.UDAY SHANKAR
S/O LATE MR.N.KESAVA REDDY
AGED ABOUT 49 YEARS
RESIDING AT No.75, 3RD CROSS
515 COLONY, BDA LAYOUT
INDIRANAGAR 80 FEET ROAD
NEW THIPPASANDRA POST
BENGALURU-560075.
... RESPONDENT
(BY SRI K.S.PERIYA SWAMY, ADVOCATE)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.55134/2019 PENDING BEFORE THE LVII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4900/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
15
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING
COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SHOBA RAMESH
W/O DR.A.C.RAMESH
AGED ABOUT 56 YEARS
RESIDING AT No.592
10TH ' A' MAIN, 5TH BLOCK
JAYANAGAR, BENGALURU - 560041
... RESPONDENT
(BY SRI H.N. SHASHIDHARA, ADVOCATES-(THROUGH V.C.))
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.9182/2019 PENDING BEFORE THE XXII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
16
CRIMINAL PETITION NO.4901/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
KALA ARTHANARI
C/O MR. RAJESH
LATE V. SUBRAMANIAN
AGED ABOUT 70 YEARS
17
RESIDING AT No.109, 9TH MAIN
GOKUL EXTENSION, 1ST STAGE, 2ND PHASE
BENGALURU-560054.
... RESPONDENT
(BY SRI.KARTHIK P.M., ADV. FOR SMT.BRINDA K. VARMA, ADV.)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.14330/2019 PENDING BEFORE THE XV ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4904/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING
COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
18
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SMT.SHOBHA RAMESH
W/O DR.A.C.RAMESH
AGED ABOUT 56 YEARS
RESIDING AT No.592
10TH ' A' MAIN, 5TH BLOCK
JAYANAGAR, BENGALURU - 560041
... RESPONDENT
(BY SRI H.N. SHASHIDHARA, ADVOCATES-(THROUGH V.C.))
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.9184/2019 PENDING BEFORE THE XXII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4905/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
19
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
SRI MANJUNATHA K.
S/O LATE V.M.KRISHNAIAH SETTY
AGED ABOUT 57 YEARS
RESIDING AT No.19
13TH CROSS, KADIRENAHALLI
BENDRENAGAR, BSK II STAGE
BENGALURU-560 070.
... RESPONDENT
(BY SRI SHANKAR NARAYAN VELU V., ADVOCATE FOR
SMT. JAMUNA BAI, ADVOCATE)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.1652/2019 PENDING BEFORE THE XVI ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
20
IN CRIMINAL PETITION NO.4907/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
AND:
HARISHKUMAR T.G.
S/O MR. T.P.GANAPATHY
RESIDINGA AT 1611, B-BLOCK
NEAR UCO BANK, SAHAKARANAGAR
BENGALURU-560 092.
... RESPONDENT
(BY SMT.SUMA G., ADV. FOR SRI DHIRENDRA N. KATTY, ADV.)
21
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.10909/2019 PENDING BEFORE THE XVIII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
IN CRIMINAL PETITION NO.4908/2020:
BETWEEN:
1. INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956 AND
HAVING ITS REGSITERED OFFICE
NO-258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
REPRESENTED BY ITS AUTHORIZED SIGNATORIES
MR.CHANDRASEKHARA BABU AND
MR.RAVI KUMAR P.K.
2. SRI RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF INDIRANAGARA
CHIT FUNDS AND TRADING
COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
3. SRI CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED
No.258, P.B.NO.3803, 6TH CROSS
I STAGE, INDIRANAGARA
BENGALURU - 560038
... PETITIONERS
(BY SRI UNNIKRISHNAN M., ADVOCATE)
22
AND:
SHOBA RAMESH
W/O DR.A.C.RAMESH
AGED ABOUT 56 YEARS
RESIDING AT No.592
10TH ' A' MAIN, 5TH BLOCK
JAYANAGAR, BENGALURU - 560041
... RESPONDENT
(BY SRI H.N. SHASHIDHARA, ADVOCATES-(THROUGH V.C.))
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
OF CR.P.C PRAYING TO QUASH ALL PROCEEDINGS IN
C.C.NO.9183/2019 PENDING BEFORE THE XXII ADDITIONAL
CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS AGAINST
THESE PETITIONERS.
THESE CRIMINAL PETITIONS HAVING BEEN HEARD AND
RESERVED FOR ORDERS ON 06.03.2021 THIS DAY, THE COURT
PRONOUNCED THE FOLLOWING:
ORDER
Crl.P.Nos.4902/2020, 4166/2020, 4887/2020, 4888/2020,
4889/2020, 4890/2020, 4892/2020, 4894/2020, 4895/2020,
4897/2020, 4900/2020, 4901/2020, 4904/2020, 4905/2020,
4907/2020 and 4908/2020 are filed under Section 482 of Cr.P.C.
praying this Court to quash the proceedings in
C.C.No.20540/2019 pending on the file of XVIII Additional Chief
Metropolitan Magistrate, Bengaluru; C.C.NO.2644/2019 pending
on the file of XXXVII Additional Chief Metropolitan Magistrate,
Bengaluru; C.C.NO.9186/2019 pending on the file of XXII
Additional Chief Metropolitan Magistrate, Bengaluru;
C.C.NO.10908/2019 pending on the file of XVIII Additional Chief
Metropolitan Magistrate, Bengaluru; C.C.NO.53860/2019
pending on the file of LVII Additional Chief Metropolitan
Magistrate, Bengaluru; C.C.NO.9185/2019 pending on the file of
XXII Additional Chief Metropolitan Magistrate, Bengaluru;
C.C.NO.1969/2019 pending on the file of XXII Additional Chief
Metropolitan Magistrate, Bengaluru; C.C.NO.55615/2019
pending on the file of LVII Additional Chief Metropolitan
Magistrate, Bengaluru; C.C.NO.2645/2019 pending on the file of
XII Additional Chief Metropolitan Magistrate, Bengaluru;
C.C.NO.55134/2019 pending on the file of LVII Additional Chief
Metropolitan Magistrate, Bengaluru; C.C.NO.9182/2019 pending
on the file of XXII Additional Chief Metropolitan Magistrate,
Bengaluru; C.C.NO.14330/2019 pending on the file of XV
Additional Chief Metropolitan Magistrate, Bengaluru;
C.C.NO.9184/2019 pending on the file of XXII Additional Chief
Metropolitan Magistrate, Bengaluru; C.C.NO.1652/2019 pending
on the file of XVI Additional Chief Metropolitan Magistrate,
Bengaluru; C.C.NO.10909/2019 pending on the file of XVIII
Additional Chief Metropolitan Magistrate, Bengaluru; and
C.C.NO.9183/2019 pending on the file of XXII Additional Chief
Metropolitan Magistrate, Bengaluru respectively against these
petitioners and pass such other orders as deem fit in the facts
and circumstances of the case.
2. The factual matrix of the case is that the petitioners
were running M/s. Indiranagar Chit Funds and Trading Company,
registered as a Chit Fund Company under the provisions of the
Companies Act, 1956 in the year 1976. The Company gained
popularity over a period of time in the Chit Fund business and
has completed about 2000 chit groups. It is the further
contention of the petitioners that the Company grew to become
a force to reckon with in the Chit Fund Business and transacted
with several Crores of Rupees and with more than around 5000
satisfied customers. In fact, the Company was started by one
Mr.Achuthan Nair, i.e., the father of the second and third
petitioners. That after his demise, his sons
Mr.P.K.Chandrasekhara Babu and Mr.P.K.Ravi Kumar were
managing the business as its Directors.
3. Due to the general slump in the financial market and
also due to the demonetization of money, many of the
subscribers of the chits, who were paying in cash started
defaulting in payment of monthly installments. That apart,
many customers/subscribers, who had bid for the chit also did
not repay M/s. Indiranagar Chit Funds and Trading Company, as
a result of which, there was short fall in collection every month.
However, the expenses and out flow from the Company did not
reduce. Due to financial pressures as stated supra, the chit
groups were also not fully subscribed. The Company instead of
focusing on recoveries started repaying the customers whose
chits had matured by borrowing heavily with huge rate of
interest i.e., 2% to 4%, as a result of which, there was financial
pressure over the Company.
4. It is further contended that in many cases, the
customers did not take the chit and left it with the Company to
get interest which would be the subscription for a new chit. This
resulted in unhealthy and unfinished group having less collection
every month and with the shortage of collections and inflow of
funds was only in Books and not in reality. Thus, the Company
was in the red which resulted in no inflow of cash. It is also
contended that M/s. Indiranagar Chit Funds and Trading
Company sold some of its properties and repaid many
customers. This being the factual situation, the Superintendent
in the office of the Assistant Registrar of Co-operative Societies,
filed a complaint before the Indiranagar Police Station when
many subscribers of Chit Fund Companies started complaining
regarding the default of the Company. The first respondent-
Police registered a complaint under Section 420 of IPC and
Section 76 of the Chit Fund Act, 1982 (for short 'the Act, 1982')
against the Directors of the M/s. Indiranagar Chit Funds and
Trading Company. The filing of criminal case triggered panic
amongst subscribers of the first petitioner, who filed many
cheque bounce cases against the petitioners. In fact, the
petitioners were not allowed to set right things and the
Indiranagar Police sealed all offices of the first petitioner and
seized all accounts books and froze all the Bank accounts. Thus,
the cheque was returned due to accounts being frozen and
returned unpaid with the remarks "Refer the Drawer".
5. It is further contended that in the meanwhile, one
Mr.Rajendra.P filed a petition under Section 9 of the Insolvency
and Bankruptcy Code, 2016 (for short 'the I&B Code, 2016')
read with Rule 6 of the Insolvency and Bankruptcy (Application
to Adjudicating Authority) Rules, 2016 (for short 'I&B Rules,
2016') by inter alia seeking to initiate the Corporate Insolvency
Resolution Process against the first petitioner on the ground that
it has committed default. The said petition was filed before the
National Company Law Tribunal, Bengaluru Bench and numbered
as CP (IB) No.322/BB/2019. The said petition came up before
the National Company Law Tribunal (NCLT), Bengaluru Bench on
28.01.2020 and the Tribunal was pleased to admit the petition
and ordered that a Moratorium be declared in respect of the first
petitioner and its Directors i.e., the second and third petitioners.
By virtue of the order dated 28.01.2020 of the NCLT, Bengaluru
Bench and Section 101 of the I&B Code, 2016, the proceedings
initiated by the respondent against the petitioners herein will
have to be quashed.
6. The common ground urged in all the petitions is that
Section 101 of the I&B Code, 2016 states that once an
application for initiation of Corporate Insolvency is filed and
admitted before the National Company Law Tribunal, a
Moratorium shall commence in relation to all the debts and all
pending legal action or proceedings in respect of any debts shall
be deemed to have been stayed. That apart, Section 3(11) of
the I&B Code, 2016 describes "Debt as a liability or obligation in
respect of the claim which is due from any persons and includes
a financial debt or operation debt". Accordingly, since Section
101 sub clause 2(a) postulates that all pending legal actions or
proceedings in respect of any debt shall deemed to have been
stayed.
7. It is contended that under Section 101(3) states that
when an order of admitting the application under Section 96 of
I&B Code, 2016 has been made in relation to a firm, the
Moratorium would also apply against all the partners of the firm.
Further, Section 141(2) of the Negotiable Instruments Act (for
short 'the NI Act'), i.e., at explanation, it states that the Director
in relation to a firm means a Partner of the firm and hence, the
proceedings initiated against all these petitioners by all the
respondents herein needs to be quashed.
8. Learned counsel appearing for the petitioners would
vehemently contend that separate complaints are filed by the
different subscribers against the Company as well as other
petitioners. Learned counsel also would submit that the NCLT
has admitted the petition and liquidation proceeding is going on
and the moratorium orders is also passed. Learned counsel
would submit that it was declared that the insolvency proceeding
was initiated and also the liquidation order was also passed and
hence, there cannot be any proceedings against the Company as
well as its Directors.
9. Learned counsel in support of his arguments, also
relied upon the recent judgment of the Apex Court passed in
Civil Appeal No.10355/2018 between P.MOHANRAJ AND
ORS. v. M/S. SHAH BROTHERS ISPAT PVT. LTD. Learned
counsel referring to this judgment brought to the notice of this
Court para Nos.33, 53 and 65 and would vehemently contend
that there cannot be any proceedings against the petitioners.
The Hon'ble Apex Court held in the judgment referred supra that
Section 138 of the NI Act also attracts against the petitioners.
The moratorium proceedings contained under Section 14 of the
I&B Code, 2016 would apply to Section 138 proceedings also.
Hence, the proceedings initiated against these petitioners are to
be quashed.
10. Per contra, learned counsel appearing for the
respondent in Crl.P.No.4897/2020 would vehemently contend
that the proceedings initiated by one of the subscribers is only
for Rs.8 Crores and the due amount payable is of Rs.47 Crores.
11. Learned counsel also filed a memo stating that
Section 482 of Cr.P.C. is totally not applicable in respect of the
cases which are pending before XXXIII Additional Chief
Metropolitan Magistrate, Mayo Hall Unit, Bengaluru. The ratio
rendered by the Apex Court in the judgment decided on
01.03.2021 in Civil Appeal No.10355/2018 between
P.MOHANRAJ & ORS V. M/S. SHAH BROTHERS ISPAT PVT.
LTD., is clear that the proceedings under Section 138 of
Negotiable Instruments Act though covers under the I&B Code,
2016, that is only in respect of Corporate Debtor and hence, the
proceedings have to be continued against the Directors. Learned
counsel would vehemently contend that the bar is only for
institution of the suit and not in respect of proceedings under
Section 138 of Negotiable Instruments Act.
12. Sri.H.N.Shashidhara, learned counsel appearing for
the respondents in Crl.P.Nos.4887/2020, 4890/2020,
4900/2020, 4904/2020, 4908/2020 would vehemently contend
that the validity of the period of moratorium is only for six
months. Since the order has been passed in the month of
January, 2020, the same has also expired. Therefore, the
petitioners cannot take shelter under the order of moratorium.
Learned counsel in support of his arguments, would rely upon
the judgment of the Apex Court in the case of SHAH
BROTHERS ISPAT PVT. LTD., v. P.MOHANRAJ AND ORS
reported in 2018 SCC Online NCLAT 415, wherein the similar
question was raised before the Court and the Apex Court had
discussed regarding Section 14 of the I&B Code, 2016 and at
para No.6, it has been observed that the proceedings under
Section 138 of NI Act is a penal provision, which empowers the
Court of competent jurisdiction to pass order of imprisonment or
fine, which cannot be held to be proceeding or any judgment or
decree of money claim. Imposing of fine cannot held to be a
money claim or recovery against the Corporate Debtor nor order
of imprisonment, if passed by the Court of competent jurisdiction
on the Directors, they cannot come within the purview of Section
14. Infact, no criminal proceeding is covered under Section 14 of
I&B Code. The Court of competent jurisdiction may proceed with
the proceeding under Section 138 of Negotiable Instruments Act,
even during the period of moratorium.
13. The learned counsel appearing for the other
respondents also adopts the arguments canvassed by the
learned counsel, who represented on behalf of the respondents
before this Court as stated supra.
14. In reply to the said arguments, learned counsel for
the petitioners would submit that the contention of the
respondents' counsel that the bar is only in respect of the suit
cannot be accepted and the petitioners are not disputing the
order of liquidating the Company. In the recent judgment of the
Apex Court, it has been held that it attracts Section 138 of NI
Act also. Learned counsel appearing for the respondents would
contend that I&B Code is not meant for protecting criminal
proceedings and the very submission of the learned counsel for
the petitioners is to make camouflage and the same cannot be
accepted.
15. Having heard the learned counsel for the petitioners
and also learned counsel for the respondents, this Court has to
appreciate the material available on record. It is not in dispute
that the subscribers of the Chit Fund have initiated the
proceedings against these petitioners under Section 138 of the
NI Act. The main contention of the learned counsel for the
petitioners before this Court is that one of the subscribers
approached the NCLT and NCLT admitted the petition for
moratorium and passed an order in the month of January, 2020.
Learned counsel appearing for the petitioners also extracted
Section 101 of I&B Code, 2016.
16. Learned counsel appearing for the respondents
relying upon the very same provisions, would vehemently
contend that the moratorium period is valid only for six months
as per Section 101 of the I&B Code, 2016. The order has been
passed in the month of January, 2020 and now we are in the
month of January, 2021. It is also important to note that the
Apex Court in the judgment referred supra by the learned
counsel for the respondents held that in fact, no criminal
proceedings is covered under Section 14 of I&B Code, 2016.
17. Learned counsel appearing for the petitioners
brought to the notice of this Court the recent judgment of the
Apex Court and would contend that the petitioners are also not
disputing the fact of initiation of the criminal proceedings and
also not disputing the liability, but his main contention is in view
of the recent judgment of the Apex Court, wherein it has been
held that the proceeding under Section 138 of NI Act is also
covered, though it was earlier held that the I&B Code does not
cover Section 138 proceedings.
18. Learned counsel also brought to the notice of this
Court para No.65 of the said judgment, wherein it is stated that
Section 33(5) of the I&B Code, 2016 is analogous to Section
14(1)(a) and extracted Section 33(5) of the Code. It is also
important to note that the Apex Court has discussed in detail
with regard to invoking of Section 138 of NI Act, wherein it has
been held that Section 14 of the I&B Code, 2016 also comes
within the purview of Section 138 of NI Act, but restricted its
scope in respect of only Corporate Debtors. In para No.77, it
has been held that as far as Directors/persons in management or
control of the Corporate Debtor are concerned, a Section
138/141 proceeding against them cannot be initiated or
continued without the Corporate Debtor.
19. The Apex Court dealt with the principles laid down in
the case of ANEETA HADA v. GODFATHER TRAVELS &
TOURS (P) LTD., reported in (2012) 5 SCC 661 and held that
the proceeding against the Directors cannot be initiated or
continued without the Corporate Debtor because Section 141 of
the NI Act speaks of persons in charge of, and responsible to the
Company, for the conduct of the business of the Company, as
well as the Company. The Apex Court referring to all these
paragraphs held that since the Corporate Debtor would be
covered by the moratorium provision contained in Section 14 of
the I&B Code, 2016, by which continuation of Section 138/141
proceedings against the Corporate Debtor and initiation of
Section 138/141 proceedings against the said debtor during the
Corporate lnsolvency Resolution Process are interdicted, what is
stated in para Nos.51 and 59 in Aneeta Hada (supra) would
then become applicable. The legal impediment contained in
Section 14 of the I&B Code, 2016 would make it impossible for
such proceedings to continue or be instituted against the
Corporate Debtor. Thus, for the period of moratorium, since no
Section 138/141 proceeding can continue or be initiated against
the Corporate Debtor because of a statutory bar, such
proceedings can be initiated or continued against the persons
mentioned in Section 141(1) and (2) of the NI Act. This being
the case, it is clear that the moratorium provision contained in
Section 14 of the I&B Code, 2016 would apply only to the
Corporate Debtor, the natural persons mentioned in Section 141
continuing to be statutorily liable under Chapter XVII of the NI
Act.
20. The Apex Court in detail discussing the same held
that Section 138/141 proceedings against the Corporate Debtor
is covered by Section 14(1)(a) of the I&B Code, 2016 and
allowed the appeal. However, Section 138/141 proceedings in
this case will continue both against the Company as well as the
Appellants for the reason given by them in para No.77 above as
well as the fact that insolvency resolution process does not
involve a new management taking over. It is also observed that
the moratorium has come to an end in the case the Apex Court
also discussed with regard to the Scope of Section 138 in Crl.A.
and held that the moratorium provisions not extend to the
persons other than the Corporate Debtor and appeal stands
dismissed.
21. Having perused the principles laid down in the
judgment referred supra and also the facts of the present cases
on hand, it is clear that the subscribers of the Chit Fund have
initiated the proceedings under Section 138 of the NI Act and the
material available on record also discloses that one of the
subscribers invoked the I&B Code, 2016, wherein moratorium
order has been passed under Section 14 of the I&B Code, 2016
and the petitioners' counsel also produced the documents for
having appointed a liquidator in respect of the Company. This
Court has already discussed the principles laid down in para
No.77 of the recent judgment of the Apex Court in P.Mohanraj's
case, wherein it has been discussed in detail the judgment of
Aneeta Hada and held that the legal impediment contained in
Section 14 of the I&B Code, 2016 would make it impossible for
such proceedings to continue or to be initiated against the
Corporate Debtor. Thus, for the period of moratorium, since no
Section 138/141 proceeding can continue or shall be initiated
against the Corporate Debtor because of a statutory bar such
proceedings can be initiated or continued against the persons
mentioned in Section 141(1) and (2) of the NI Act. Hence,
Section 14 of the I&B Code, 2016 would apply only to the
Corporate Debtor. The natural persons mentioned in Section 141
continuing to be statutorily liable under the Chapter XVII of the
NI Act and in conclusion it is held that Section 138/141
proceedings, in the case, will continue both against the Company
as well as the appellants for the reasons given by the Apex Court
in para No.77 as well as the fact that the insolvency resolution
process does not involve a new management taking over.
22. In view of the principles laid down in the judgment,
it is crystal clear that Section 14 of the I&B Code, 2016 would
apply only to the Corporate Debtor and hence, the very
contention of the petitioners that the judgment of the Apex
Court would come to the aid of the petitioners herein cannot be
accepted.
23. In view of the discussion made above, I proceed to
pass the following:-
ORDER
The petitions are hereby dismissed.
Sd/-
JUDGE
PYR
