Kerala High Court
Vinode V. Luka vs State Of Kerala on 8 April, 2025
2025:KER:29896
Crl.M.C.Nos.6580, 7382
& 7383 of 2017 1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE G.GIRISH
TUESDAY, THE 8TH DAY OF APRIL 2025 / 18TH CHAITHRA, 1947
CRL.MC NO. 6580 OF 2017
CRIME NO.2184/2012 OF ERNAKULAM CENTRAL POLICE STATION, ERNAKULAM
AGAINST THE ORDER IN CC NO.161 OF 2012 OF CHIEF JUDICIAL
MAGISTRATE, ERNAKULAM
PETITIONER/6TH ACCUSED:
VINODE V. LUKA,
AGED 43 YEARS
S/O. LATE V.D. LUKA, RESIDING AT VALLOMPRAIL HOUSE,
VADAKODE P.O., ERNAKULAM, KERALA - 682 021.
BY ADVS.SRI.P.CHANDRASEKHAR
SRI.C.V.MANUVILSAN
SMT.P.M.MAZNA MANSOOR
SMT.SANDHYA R.NAIR
SMT.K.VIDYA
RESPONDENT/STATE/ DE FACTO COMPLAINANT:
1 STATE OF KERALA
REPRESENTED BY THE STATION HOUSE OFFICER,
CENTRAL POLICE STATION, ERNAKULAM THROUGH THE PUBLIC
PROSECUTOR, HIGH COURT OF KERALA,
ERNAKULAM - 682 031.
2 C.O. ALEXANDER, AGED 65 YEARS,
S/O. KUNJACHAN, MANGALATH HOUSE, KANJIKUZHY,
MUTTAMBALAM VILLAGE, KOTTAYAM DISTRICT - 686 004.
BY ADVS. SRI.P.B.ASOKAN
SRI.S.SREEKUMAR ADUKKATH
SRI. SANGEETHARAJ N.R., PUBLIC PROSECUTOR
THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON
17.03.2025, ALONG WITH CRL.MC.7383/2017 AND CONNECTED CASES, THE
COURT ON 08.04.2025 PASSED THE FOLLOWING:
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE G.GIRISH
TUESDAY, THE 8TH DAY OF APRIL 2025 / 18TH CHAITHRA, 1947
CRL.MC NO. 7382 OF 2017
CRIME NO.1001/2011 OF ERNAKULAM CENTRAL POLICE STATION, ERNAKULAM
AGAINST THE ORDER IN CMA NO.148 OF 2013 OF CHIEF JUDICIAL
MAGISTRATE, ERNAKULAM
PETITIONER/6TH ACCUSED:
VINODE V. LUKA,
AGED 43, S/O.V.D.LUKA,
VALLOMPRAIL HOUSE, VADAKODE P.O.,
ERNAKULAM, KERALA-682021.
BY ADVS.SRI.P.CHANDRASEKHAR
SRI.C.V.MANUVILSAN
RESPONDENT/STATE/ DE FACTO COMPLAINANT:
1 STATE OF KERALA
REPRESENTED BY THE STATION HOUSE OFFICER,
CENTRAL POLICE STATION, ERNAKULAM,
THROUGH THE PUBLIC PROSECUTOR,
HIGH COURT OF KERALA, ERNAKULAM-682031.
2 ABHILASH S.R.,
SANTHINIKETHAN, V.P.M ROAD,
EDAPPALLY TOLL, ERNAKULAM-682024.
SRI. SANGEETHARAJ N.R., PUBLIC PROSECUTOR
THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON
17.03.2025, ALONG WITH CRL.MC.7383/2017 AND CONNECTED CASES, THE
COURT ON 08.04.2025 PASSED THE FOLLOWING:
2025:KER:29896
Crl.M.C.Nos.6580, 7382
& 7383 of 2017 3
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE G.GIRISH
TUESDAY, THE 8TH DAY OF APRIL 2025 / 18TH CHAITHRA, 1947
CRL.MC NO. 7383 OF 2017
CRIME NO.945/2011 OF ALAPPUZHA SOUTH POLICE STATION, ALAPPUZHA
AGAINST THE ORDER IN CMA NO.1477 OF 2014 OF JUDICIAL
MAGISTRATE OF FIRST CLASS, RAMANKARI
PETITIONER/7TH ACCUSED:
VINODE V. LUKA
AGED 43 YEARS,
S/O. V.D. LUKA, VALLOMPRAIL HOUSE,
VADAKODE P.O, ERNAKULAM, KERALA-682021.
BY ADVS.SRI.P.CHANDRASEKHAR
SRI.C.V.MANUVILSAN
RESPONDENTS/STATE/DE FACTO COMPLAINANT:
1 STATE OF KERALA
REPRESENTED BY THE STATION HOUSE OFFICER,
CENTRAL POLICE STATION, ERNAKULAM,
THROUGH THE PUBLIC PROSECUTOR,
HIGH COURT OF KERALA, ERNAKULAM- 682031.
2 PETER,
S/O. ROCKEY, THEKKEPALACKAL HOUSE,
ASHRAMAM XI WARD, ALAPPUZHA-688001.
BY ADV SMT.S.SIKKY
SRI. SANGEETHARAJ N.R., PUBLIC PROSECUTOR
THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON
17.03.2025, ALONG WITH CRL.MC.6580/2017, 7382/2017, THE COURT ON
08.04.2025 PASSED THE FOLLOWING:
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ORDER
The petitioner is the sixth accused in C.C.No.161/2012 and
C.C.No.148/2013 on the files of the Chief Judicial Magistrate Court,
Ernakulam, and the seventh accused in C.C.No.1477/2014 on the
files of the Judicial First Class Magistrate Court, Ramankari. The
offence alleged against the petitioner in C.C.No.161/2012 are under
Sections 403, 420 and 120B read with Section 34 I.P.C and that of in
C.C.No.148/2013 are under Sections 403 and 420 I.P.C read with
Section 34 I.P.C and also under Sections 2(c), 3, 4 and 5 of the Prize
Chits and Money Circulation Schemes (Banning) Act, 1978. The
offence alleged in C.C.No.1477/2014 on the files of the Judicial First
Class Magistrate Court, Ramankary are under Sections 409, 418, 420,
120(A) and 120(B) read with Section 34 I.P.C and Sections 2(c), 3, 4
and 5 of the Prize Chits and Money Circulation Schemes (Banning)
Act, 1978. In C.C.No.148/2013, there are altogether nine accused,
and in the other two cases, there are eight accused.
2. The prosecution case is that, with the common intention
to commit cheating, the accused had conspired together and gave
the false promise to the depositors that if they invest in the
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partnership firm by name 'LIS' conducted by the first accused as its
Managing Trustee and accused Nos.2 and 3 as partners, the amount
so deposited would be doubled within a year and that the
investments so made by the depositors would be returned to them
after the prescribed period as double the amount, and thereafter, did
not honour the above commitment and failed to return the amount
so deposited by the depositors. The petitioner was said to be working
as Manager in the above establishment conducted by the first
accused as Managing Trustee and accused Nos.2 and 3 as partners.
The total amount embezzled in the crime involved in
C.C.No.148/2013 is Rs.52,37,375/-, and that of in C.C.No.161/2012
and C.C.No.1477/2014 are respectively Rs.4,63,000/- and
Rs.8,93,125/-.
3. In the present petitions, the petitioner would contend
that he is totally innocent and that he has been falsely implicated in
this case. It is further contended by the petitioner that he was only
an employee of the establishment conducted by accused Nos.1 to 3
and that he cannot be held liable for the offences alleged in these
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cases. For the above reason, the petitioner seeks to quash the
proceedings in these cases.
4. Heard the learned counsel for the petitioner and the
learned Public Prosecutor representing the State of Kerala.
5. Admittedly, the petitioner was working as Manager in the
establishment by name 'LIS' which was run by the first accused as
Managing Trustee and accused Nos.2 and 3 as the partners. The
fourth accused is stated to be the Chairman of the above
establishment, and the 8th accused, the partner of a sister concern
of that partnership firm. It is pertinent to note that, apart from a
general and superficial allegation that the employees at the office of
the establishment by name 'LIS' had also compelled the depositors to
invest in the financial business being conducted by the above firm,
there is absolutely no specific indictment as against the petitioner
herein. There is no case for any of the depositors that the petitioner
herein was entrusted with any amount, or that the petitioner herein
had collected any amount from the depositors after fraudulently and
dishonestly inducing them to believe that their amounts would be
doubled, if they are making investments in the firm conducted by
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accused Nos.1 to 3. Going by the provisions contained in Section 6
of the Prize Chits and Money Circulation (Banning) Act, 1978, if an
employee of a firm or other association of individuals has to be held
liable for the offence committed by the firm, it has to be shown that
he was in-charge of, and was responsible to the firm for the conduct
of business of such firm. It is further provided thereunder that if a
Manager, Secretary or other Officer of any such company or firm has
to be attributed personally with the criminal liability in respect of the
offence committed by such firm, it has to be shown that such offence
was committed with the consent or connivance of, or is attributable
to any neglect on the part of such Manager, Secretary or officer, as
the case may be.
6. For the sake of convenience and easy reference, Section
6 of the Prize Chits and Money Circulation (Banning) Act, 1978 is
extracted hereunder:
6. Offences by companies.--(1) Where an offence under
this Act has been committed by a company, every person who,
at the time the offence was committed, was in charge of, and
was responsible to, the company for the conduct of the
business of the company, as well as the company, shall be
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deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall
render any such person liable to any punishment provided in
this Act, if he proves that the offence was committed without
his knowledge or that he exercised all due diligence to prevent
the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1),
where an offence under this Act has been committed by a
company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable
to, any neglect on the part of, any director, manager, secretary
or other officer of the company, such director, manager,
secretary or other officer shall also be deemed to be guilty of
that offence and shall be liable to be proceeded against and
punished accordingly.
Explanation.--For the purposes of this section-- (a)
"company" means any body corporate and includes a firm or
other association of individuals; and (b) "director", in relation
to a firm, means a partner in the firm."
7. It is clear from the aforesaid provision of law that if a person
has to be held liable for an offence committed by a company, firm or
other association of individuals, it is the incumbent responsibility of
the prosecution to establish that such person was in charge of, and
responsible to the conduct of business of such company, firm or
association of individuals. Likewise, it is clear from sub Section (2) of
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Section 6 stated above that, if an Officer, Secretary or Manager of a
company, firm or association of individuals has to be held personally
liable for the offence committed by such association or firm, the
prosecution has to establish that such offence was committed with
the consent or connivance of, or it is attributable to, any neglect on
the part of such Secretary, Manager or other officer of that firm. As
far as the present case is concerned, there is absolutely nothing on
record to show that the offence involved was committed with the
consent or connivance of the petitioner, or that it is attributable to
any neglect on the part of the petitioner. So also, there is nothing
brought out from the final report and other records relied on by the
prosecution that the petitioner, in his capacity as Manager, was in
charge of, and responsible to the company and the conduct of
business of the company. In that view of the matter, it has to be
stated that the offence alleged in these cases, against the petitioner,
are not brought out from the final report and other records relied on
by the prosecution. Therefore, the request in these petitions to
quash the proceedings against the petitioner in the aforesaid cases,
is perfectly justifiable.
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In the result, all these petitions stand allowed. The
proceedings against the petitioner, who is the 6th accused in
C.C.No.148/2013 and C.C.No.161/2012 on the files of the Chief
Judicial Magistrate Court, Ernakulam, and the 7th accused in
C.C.No.1744/2014 on the files of the Judicial First Class Magistrate
Court, Ramankari, are hereby quashed.
(Sd/-)
G. GIRISH, JUDGE
jsr
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PETITIONER ANNEXURES
ANNEXURE A1 TRUE PHOTOCOPY OF COMPLAINT DATED
14.08.2012, VIDE CMP NO.2983 OF 2012
FILED BEFORE THE HON'BLE CHIEF JUDICIAL
MAGISTRATE COURT, ERNAKULAM.
ANNEXURE A2 TRUE PHOTOCOPY OF FIR DATED 16.08.2012 IN
CRIME NO. 2184 OF 2012, REGISTERED BY THE
CENTRAL POLICE ERNAKULAM.
ANNEXURE A3 TRUE PHOTOCOPY OF FINAL REPORT DATED
25.09.2012 IN CRIME NO. 2184 OF 2012,
FILED BY THE CENTRAL POLICE ERNAKULAM.
ANNEXURE A4 TRUE PHOTOCOPY OF THE ORDER DATED
27.102.2005 IN CRL. M.C.NO.2912/2005
DATED 27.10.2005.
ANNEXURE A5 TRUE PHOTOCOPY OF THE JUDGMENT DATED
30.01.2006 IN W.P.(C) NO. 33743/2005.
ANNEXURE A6 TRUE PHOTOCOPY OF THE ENQUIRY REPORT
DATED 10.02.2006, VIDE NO. D12264/CB
SR/2005 TO THE A.D.G.P. (CRIMES)
ANNEXURE A7 TRUE PHOTOCOPY OF THE AFFIDAVIT FILED ON
BEHALF OF THE STATE DATED 25.11.2014, IN
W.P.(C)NO.12352/14.
ANNEXURE A8 TRUE PHOTOCOPY OF THE INTERIM ORDER DATED
27.11.2014 IN W.P.(C) NO. 12352/14 AND
W.P.(C) NO. 20167/14.
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PETITIONER ANNEXURES
ANNEXURE A1- TRUE PHOTOCOPY OF COMPLAINT DATED
08/03/2011, BEFORE THE INSPECTOR GENERAL
OF POLICE ERNAKULAM.
ANNEXURE A2- TRUE PHOTOCOPY OF FIR DATED 22/03/2011 IN
CRIME NO.1001 OF 2011, REGISTERED BY THE
CENTRAL POLICE ERNAKULAM.
ANNEXURE A3- TRUE PHOTOCOPY OF FINAL REPORT DATED
30/04/2013 IN CRIME NO.1001 OF 2011, FILED
BY THE CENTRAL POLICE ERNAKULAM.
ANNEXURE A4- TRUE PHOTOCOPY OF THE ORDER DATED
27/10/2005 IN CRL.M.C.NO.2912/2005 DATED
27/10/2005.
ANNEXURE A5- TRUE PHOTOCOPY OF THE JUDGMENT DATED
30/01/2006 IN W.P(C)NO.33743/2005.
ANNEXURE A6- TRUE PHOTOCOPY OF THE ENQUIRY REPORT DATED
10/02/2006, VIDE NO.D12264/CB SR/2005 TO
THE A.D.G.P. (CRIMES).
ANNEXURE A7- TRUE COPY OF THE AFFIDAVIT FILED ON BEHALF
OF THE STATE DATED 25/11/2014, IN
WP(C)NO.12352/14.
ANNEXURE A8- TRUE PHOTOCOPY OF THE INTERIM ORDER DATED
27/11/2014 IN WP(C)NO.12352/14 AND
WP(C)NO.20167/14.
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PETITIONER ANNEXURES
ANNEXURE A1 TRUE PHOTOCOPY OF FIR DATED 25.10.11 IN
CRIME NO.789/11, REGISTERED BY THE NORTH
POLICE, ALAPPUZHA.
ANNEXURE A2 TRUE PHOTOCOPY OF FIR DATED 28.10.11 IN
CRIME NO.945/11, REGISTERED BY THE SOUTH
POLICE, ALAPPUZHA.
ANNEXURE A3 TRUE PHOTOCOPY OF FINAL REPORT DATED
25.09.12 IN CRIME NO.945 OF 2011, FILED BY
THE SOUTH POLICE, ALAPPUZHA.
ANNEXURE A4 TRUE PHOTOCOPY OF THE ORDER DATED
27.10.2005 IN CRL.M.C.NO.2912/2005 DATED
27.10.2005.
ANNEXURE A5 TRUE PHOTOCOPY OF THE JUDGMENT DATED
30.01.2006 IN W.P.(C) NO.33743/2005.
ANNEXURE A6 TRUE PHOTOCOPY OF THE ENQUIRY REPORT DATED
10.02.2006 VIDE NO.D12264/CB SR/2005 TO THE
A.D.G.P.(CRIMES).
ANNEXURE A7 TRUE PHOTOCOPY OF THE AFFIDAVIT FILED ON
BEHALF OF THE STATE DATED 25.11.2014, IN
WP(C) NO.12352/14.
ANNEXURE A8 TRUE PHOTOCOPY OF THE INTERIM ORDER DATED
27.11.2014 IN WP(C) NO.12352/14 AND WP(C)
NO.20167/14.
