Madras High Court
Siragiri Farms India (P) Limited vs State Represented By on 2 February, 2022
Crl.O.P.No.20027 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 02.02.2022
CORAM
THE HONOURABLE MR.JUSTICE M.NIRMAL KUMAR
Crl.O.P.No.20027 of 2021 and
Crl.M.P.No.10890 of 2021
1.Siragiri Farms India (P) Limited,
33-Kanishka Complex, First Floor,
Opp. To Canara Bank, Kangeyam Road,
Chinnamalai, Erode District.
(Represented by A2, A3, A4).
2.A.Sathishkumar
3.K.Alagesan
4.A.Sasikumar ... Petitioners
Vs.
1.State represented by,
Inspector of Police,
Economic Offences Wing II Unit,
Erode.
2.Malarkodi ... Respondents
PRAYER: Criminal Original Petition is filed under Section 482 of the
Code of Criminal Procedure, to call for the records in C.C.No.3 of 2015
pending on the file of the Special Judge, Special Court under Tamil Nadu
Protection of Interest of Depositor Act, 1997, Coimbatore and quash the
same.
Page No.1 of 10
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Crl.O.P.No.20027 of 2021
For Petitioners : Mr.G.Murugendran
For R1 : Mr.E.Raj Thilak,
Additional Public Prosecutor
For R2 : Mr.K.Nagendra Prasad
*****
ORDER
This Criminal Original Petition has been filed to quash the
proceedings in C.C.No.3 of 2015, on the file of the Special Court for
trying of cases under the Tamil Nadu Protection of Interests of Depositors
Act, 1997, Coimbatore.
2.The order of this Court, dated 27.10.2021 in Crl.O.P.No.20027 of
2021 is extracted as follows:-
“The petitioners/ A1 to A4 have filed the above
petition seeking for quashing of C.C.No.3 of 2015 pending
on the file of the Special Judge, Special Court under Tamil
Nadu Protection of Interest of Depositor Act, 1997
Coimbatore.
2.The contention of the petitioners is that totally there
are 107 depositors in this case and the amount involved is
Rs.1,39,03,568/-, for 87 depositors, the money has been paid
to them and they received the same, deposed no further
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Crl.O.P.No.20027 of 2021
action necessary. With regard to 10 persons MOU showing
settlement of dues, produced before this Court, for the
balance 10 persons who were unable to be traced
immediately, the Demand Draft to the tune of Rs.11,93,200/-
in the name of Competent Authority/ District Revenue
Officer, Erode, in Demand Draft No.006166 dated
18.10.2021 produced. He further submitted that, in view of
the entire depositors having been paid, further prosecution is
not necessary. Further the Competent Authority can invoke
Section 5A of the Tamil Nadu Protection of Interest of
Depositors Act and compound the offence. The Competent
Authority is not receiving the Demand Draft for the ten
untraceable persons and acknowledging the settlement made
to 97 depositors. He further submitted that, on 25.10.2021
the trial Court questioned the accused under Section 313 of
Cr.P.C. Thereafter, the case is posted to 27.10.2021. On
27.10.2021 the petitioners/accused were given last chance to
examine the defence witness. He further submitted that,
thereafter, shortly judgment would be rendered. The
petitioner's grievance is that when majority of the depositors
settle, the balance 10 persons Demand Draft made ready
and the petitioners interest is to settle the depositors. The
Competent Authority to get satisfied and file a compounding
petition, for the reasons best known, no such steps taken,
despite the petitioners producing all the materials. The trial
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Crl.O.P.No.20027 of 2021
Court is refusing to look into the efforts taken by the
petitioners in settling its depositors. The petitioners are
business entrepreneur, the business failed and with great
difficulty the depositors settled, the petitioners cannot be
treated like regular criminals.
3. The Additional Public Prosecutor submitted that, in
this case 107 depositors cheated of which only 87 depositors
settled, with regard to the 10 others, MOU is produced, now,
the same to be verified and with regard to the other 10
persons, they are to be traced. The amount of Rs.11,93,200/-
can be deposited before the Competent Authority and it is for
the Competent Authority to inform, whether all depositors
paid and their dues are settled. He further submitted that he
has to verify the MOU produced and also with regard to the
amount quantified for the balance 10 depositors who are yet
to be identified, their whereabouts to be found and dues to be
paid.
4. The petitioners have settled substantial number of
depositors and after only ten depositors the amount to be
paid for them now Demand Draft taken in the name of
Competent Authority and to be deposited. Finding force in
the submission of the learned counsel for the petitioners,
substantial amount already paid by the petitioners and for
the rest of the persons, MOU to be verified and for the
balance 10 depositors they are to be traced, Demand Draft
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Crl.O.P.No.20027 of 2021
produced.
5. In view of the same, this Court is inclined to admit
the petition, stay the proceedings of the trial Court till the
disposal of the above Petition. In the meanwhile, the
petitioners have to deposit the Demand Draft to the
Competent Authority/District Revenue Officer, Erode, who
shall receive the same and credit to C.C.No.3 of 2015 and its
Crime No.44 of 2013. 6. Notice to the second respondent
returnable by 17.11.2021. Private notice is also permitted.
Post this matter on 17.11.2021.”
3.The learned Additional Public Prosecutor appearing for the 1st
respondent filed status report and the relevant portion is extracted as
follows:-
“1) I humbly submit that I am the first respondent
herein and I am well aquatinted with the facts and
circumstances of this case and I am filing this counter
affidavit.
2) It is humbly submitted that in the above case two
charge sheets was filed as mentioned here under
(a) Charge sheet No.1 filed on 18.11.2014 on the
basis of the claim of 96 depositors comprising a total
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Crl.O.P.No.20027 of 2021
amount of Rs.1,26,28,068/- (Rupees one cores twenty six
lakhs twenty eight thousand and sixty eight)
b) Charge sheet No.2 filed on 12.07.2016 on the basis
of the claim of 11 depositors comprising a total amount of
Rs 12,75,500/- (Rupees twelve lakhs seventy five thousand
and five hundred).
3) It is humbly submitted that basis of the above said
two charge sheets the trial of this case has begun and out of
the total number of 120 witnesses, so far 115 witnesses were
examined. The accused were filed a petition in CMP.No
2076/21 at the trial court for recall the 3 Investigation
officers of PWs 113, 114 and 115 and the petition was
allowed and the case is posted for examination of
Investigation officers.
4) It is humbly submitted that so far as the above said
two charge sheets the number of the depositors cheated is
107 and the total amount cheated is Rs. 1,39,03,568/-
( Rupees one corers thirty nine lakhs three thousand five
hundred and sixty eight)
5) It is humbly submitted that though the petitioners
claimed that out of 107 depositors the amounts of 87
depositors were settled and they were recalled and
settlement was recorded is concerned.
6) It is humbly submitted that the petitioners submitted
petition mention as the Company was settled the deposit
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Crl.O.P.No.20027 of 2021
amount to the depositors and out of 107 depositors, 87
witness(depositors), were recalled and settlement was
recorded by the Hon'ble Trial Court and 8 witnesses
(depositors) were entered into Memorandum of
Understanding with the company and claim amount also
settled to the depositors and remaining 12 depositors
concerned where about not known, however the petitioners
have been taken steps to trace out the depositors to settle the
amount and the said amount is ready. It is further submitted
that the petitioners are deposit the 12 depositors claim
amount to be deposit before the Competent Authority,
Erode.”
4.He further submitted that out of 107 depositors, 87 depositors
were recalled and settled with the deposited amount and their statements
were recorded by the trial Court. Further, 8 depositors were entered into
the Memorandum of Understanding with the petitioners company and the
same has been produced before this Court. The balance 12 depositors'
whereabout is not known and their deposited amount have already
deposited with the DRO/Competent Authority, Erode.
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Crl.O.P.No.20027 of 2021
5.This Court considered the rival submissions and perused the
materials available on record.
6.The petitioner has filed this Quash Petition primarily on the
ground that all the depositors were settled of their dues. Only few
depositors could not be traced, but their deposited amount has already
been deposited with the DRO/Competent Authority, Erode.
7.As per the direction of this Court, the petitioners deposited the
balance amount of Rs.11,93,200/- (Rupees eleven lakh ninety three
thousand and two hundred only) with the Competent Authority/DRO,
Erode. The copy of the demand draft No.006166, Axis Bank,
Ayothiyapattinam Branch and the letter of the Competent Authority in
Ref.No.28230/2016/C5, dated 11.11.2021 are produced before this Court.
8.In view of Section 5(A) of the Tamil Nadu Protection of Interests
of Depositors Act, 1997 that the offence under TNPID Act can be
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Crl.O.P.No.20027 of 2021
compounded on payment of the entire amount due to the depositors with
or without interest and Section 420 IPC is also compoundable offence and
in view of the entire amount paid to depositors who claimed the amount,
further rest of the depositors amount deposited with the competent
authority, this Court is inclined to quash the proceedings in C.C.No.3 of
2015, on the file of the Special Judge, Special Court under Tamil Nadu
Protection of Interest of Depositor Act, 1997, Coimbatore, against the
petitioners and the same is quashed. Accordingly, this Criminal Original
Petition is, accordingly, allowed. Consequently, the connected Criminal
Miscellaneous Petition is closed.
02.02.2022
Index: Yes/No
Internet: Yes/No
vv2
Note: Issue Order Copy on 23.02.2022.
To
1.The Special Court for Tamil Nadu Protection of Interest of
Depositor Act, 1997, Coimbatore.
2.The Inspector of Police,
Economic Offences Wing II Unit,
Erode.
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Crl.O.P.No.20027 of 2021
3.The Public Prosecutor,
High Court, Madras.
M.NIRMAL KUMAR, J.
vv2
Crl.O.P.No.20027 of 2021
02.02.2022
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