Madras High Court
M/S.Susi Emu Farms India Pvt. Ltd vs The State Of Tamil Nadu Rep. By on 8 March, 2021
C.M.A.No.2708 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 08.03.2021
CORAM:
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
C.M.A.No.2708 of 2014
and
M.P.No.1 and 2 of 2014
M/s.Susi Emu Farms India Pvt. Ltd.,
Rep. by its Managing Director,
M.S.Guru @ Gurusamy,
S/o.Maran,
97-B, Raja Street,
New Bus Stand,
Perundurai – 638 052.
Erode District. .. Appellant
Vs.
1.The State of Tamil Nadu rep. by
The Principal Secretary to Government,
Department of Home,
Secretariat,
Chennai-600 009.
2.The District Revenue Officer,
Erode District,
Erode – 638 001. .. Respondents
PRAYER : Civil Miscellaneous Appeal (CMA) is filed under Section 11 of
the Tamil Nadu Protection of Interests of Depositors (In Financial
Establishments) Act (TANPID), against order dated 11.10.2013 made in
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C.M.A.No.2708 of 2014
O.A.No.13 of 2013 on the file of the Special Court for TANPID Act Cases,
Coimbatore.
For Appellant : Mr.Kumara Devan
For Respondents : Mr.A.Devenarendran
Government Advocate (CS)
JUDGMENT
On previous hearing i.e., 23.02.2021, when the matter was
called, the learned counsel for the appellant submitted that the appellant was
absconded but this Court called for the particulars about the stage of the case
pending in O.A.No.13 of 2013 on the file of the Special Court under TANPID
Act, Coimbatore. Accordingly, 6 cases are pending against the
appellant/accused and he was lastly appeared on 22.01.2001 and all the cases
are still pending,but the trial not concluded.
2. Heard on both sides.
3. On a perusal of the records, it reveals that the appellant preferred
the CMA against the order dated 11.10.2013, passed by the learned Special
Judge under TNPID Act, Coimbatore in O.A.No.13 of 2013, which was filed
by him to raise the order of attachment made in G.O.Ms.No.711, dated
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C.M.A.No.2708 of 2014
21.09.2012 relating to 7445 birds and immovable properties.
4. The learned Government Advocate (CS) for the respondents
submitted that O.A.No.13 of 2013 was filed by the appellant/ petitioner to
raise the order of attachment made in G.O.Ms.No.711, Home (Police XIX)
Department, dated 21.09.2012 relating to 7445 birds and immovable
properties as mentioned in the Schedule II of the Properties in O.A.No.13 of
2013, filed by the appellant. The appellant is a Private Company managed by
its Managing Partner is M.S.Guru @ Gurusamy. The appellant company was
started to promote and propagate the Emu farms in the State of Tamil Nadu.
The Emu bird is a bird of Australian Origin and the appellant Company made
a propagation that Emu bird can survive in any type of climate and Emu farm
is a more profitable business and they also gave attractive promise to the
public. Besides, they entered into agreement with persons offered deposit
Rs.1.5 lakhs and to get Emu Chicks, and other ancillaries and started to
collect Rs.1.5 lakhs from each depositors, collected more than Crores of
rupees.
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C.M.A.No.2708 of 2014
5. But, as agreed the appellant farm failed to repay the
deposit. So, the Police received about more than 3000 complaints from 13000
investors, and came to know about the innocent farmers who were cheated
by giving false promise by the appellant Company. So many cases were
registered against them. The competent authority was given power to attach
the properties of the appellant Company by G.O.Ms.No.711, Home (Police
XIX) Department, dated 21.09.2012. A case in Crime No.2/2012 under
Sections 406,420 IPC and 5 of the TANPID Act was registered on
09.08.2012. The appellant Company and its partners were arrested and
remanded. During the course of investigation, it has been revealed that they
have collected deposits amount in a tune of Rs.97,48,12,520/- from 3767
depositors in two schemes and defaulted to repay the amount(s) as they
promised. So, the competent authority filed O.A.No.26 of 2012 and
O.A.No.12 of 2013 before the TANPID Court, for attachment of movable and
immovable properties of the defaulted farm (appellant company) and its
partners.
6. Accordingly, O.A.No.12 of 2013 was filed by Competent
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C.M.A.No.2708 of 2014
Authority, District Revenue Officer, Erode District, Erode praying to grant
absolute attachment order by the Special Court, under Section 4(3) of Tamil
Nadu Protection of Interest of Depositors (in Finance Establishments) Act
1997 and also permit the petitioner to sell the 12 vehicles (approximate value
Rs.34,30,000/-) and frozen amount rs.21,96,409.18 may be credited in the
name of Competent Authority and District Revenue Officer, Erode District in
the Savings Bank A/o.No.101501000010744 in the Indian Overseas Bank,
Surampettai Branch at Erode under Section 7(6) of Tamil Nadu Protection of
Interests of Depositors (in Financial Establishments) Act 1997.
7. The appellant Company filed O.A.No.3 of 2013 praying to
raise the order of attachment in G.O.Ms.No.703 dated 21.09.2012 relating to
four wheeler vehicles and Bank Accounts and also filed O.A.No.13 of 2013
seeking to raise the order of attachment in G.O.Ms.No.711 dated 21.09.2012
passed by the Government of Tamilnadu relating to the immovable properties
and 7445 Emu birds and pass such other suitable orders.
8. On hearing both sides, the TANPID Court concluded that
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C.M.A.No.2708 of 2014
the properties are purchased by the defaulted farm / Company along with the
partners after formation of the farm, out of deposited amounts collected from
the public, so the appellant Company's properties were attached in O.A.No.26
of 2012 and O.A.No.12 of 2013.
9. Accordingly, O.A.No.3 of 2013 and O.A.No.13 of 2013
filed by the appellant Company to raise the attachment order was dismissed
on 11.10.2013. Aggrieved by the said attachment order, this appeal is
preferred by the defaulted farm through its Managing Director.
10. The questions of Law that arises for consideration is as to
“whether the impugned order passed by the TANPID Court in O.A.No.13 of
2013 is sustainable?”
11. The facts reveals that appellant Company defaulted to
repay the deposit amount to the deposit holders, which was collected by
giving false hope and promise to repay them. Further, the amount collected
from the public was utilised for personal gain by purchase of the movable and
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C.M.A.No.2708 of 2014
immovable properties as shown in the Schedule of G.O(Ms)No.711, Home
(Police XIX) Department, dated 21.09.2012. Most of the depositors are poor
farmers and their hard earned agricultural money was forced to be deposited
in the appellant Company who gave false hope and fanciful attraction with
regard to repayment with bonus amount. So, the appellant cheated many
depositors for more than Crores of rupees and the legal action had been taken
against them, and also the Criminal cases were also lodged against them,
which are pending without much progress.
12. At the time of the arguments, technically the appellant's
counsel stating that appellant is absconded, but information from TANPID
Court reveals that he is attending the Court. Since the appellant Company
farm cheated many of the depositors for holding crores of amounts in their
hand and utilised public money by purchasing movable and immovable
properties for their personal gain. Therefore, action taken by competent
Authority to safeguard the interest of the depositors and to disburse the
deposit amount through the sale proceeds arising out the sale of movable and
immovable properties belongs to the accused.
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C.M.A.No.2708 of 2014
13. The learned Special Judge under TANPID Act,
Coimbatore rightly passed the order making the attachment as absolute and
permitted to sell the properties, which is valid under law. Accordingly,
question of law is answered in favour of the respondents.
14. Therefore, the appeal is dismissed as devoid of merits and
the learned Special Judge under TNPID Act, Coimbatore is directed to
dispose of the main case as early as possible, without giving adjournments.
Consequently, connected Miscellaneous petitions are closed. No costs.
08.03.2021
rri
Index : Yes/No
Speaking Order: Yes/No
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C.M.A.No.2708 of 2014
T.V.THAMILSELVI,J.
rri
C.M.A.No.2708 of 2014
and
M.P.No.1 and 2 of 2014
08.03.2021
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