S.Sreenivasan vs The State Rep.By
2022 Latest Caselaw 15485 Mad

                                                                               Crl.O.P.No.21670 of 2022

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED 19.09.2022

                                                           CORAM

                                  THE HONOURABLE Mr.JUSTICE G.K.ILANTHIRAIYAN

                                               Crl.O.P.No.21670 of 2022
                                                         and
                                               Crl.M.P.No.14054 of 2022


                     S.Sreenivasan                                             ... Petitioner

                                                            Vs
                     The State Rep.by
                     The Inspector of Police,
                     Economic Offence Wing, Team-II,
                     Namakkal
                     (Ref.Crime No.02/2013)                                    ... Respondent

                     PRAYER: Criminal Original Petition filed under Section 482 of Cr.P.C, to
                     call for the records in C.C.No.10 of 2014 and to set aside the daily order
                     dated 12.08.2022 passed by the Special Court established under TNPID Act,
                     Coimbatore and to quash the final report.

                                          For Petitioner     : Mr.S.Sheik Ismail

                                          For Respondent     : Mr.E.Raj Thilak,
                                                               Additional Public Prosecutor




                     Page 1 of 8


https://www.mhc.tn.gov.in/judis
                                                                                     Crl.O.P.No.21670 of 2022



                                                            ORDER

This Petition has been filed to call for the records in C.C.No.10 of

2014 and to set aside the daily order dated 12.08.2022 passed by the Special

Court established under the Tamil Nadu Protection of Interests of

Depositors (in Financial Establishments) Act, 1997 (hereinafter referred to

as the TNPID Act for short), Coimbatore and to quash the final report.

2. The learned counsel for the petitioner submitted that the petitioner

is arrayed as A-4 and facing trial for the offences under Section 5 of the

TNPID Act & Sections 120(B), 406, 420, 467 and 468 of IPC alleging that

he defaulted in repayment of deposits and interest honouring the

commitment. The respondent, after completion of investigation, filed the

final report and relied upon 544 witnesses to prove their case and during the

course of trial, the prosecution has examined 334 witnesses and marked

1272 exhibits. The Trial Court instead of proceeding to examine the

remaining witnesses, during the course of Trial, the Trial Court dispensed

with the examination of remaining witnesses and permitted the Investigating

https://www.mhc.tn.gov.in/judis Crl.O.P.No.21670 of 2022

Officer to examine and mark those fixed depositors receipts through the

Investigating Officer.

3. The learned counsel for the petitioner further submitted that the

petitioner is losing his opportunity to establish the defence and the right to

fair trial will be deprived, if the petitioner is not examined by the witnesses.

He also submitted that, in fact, the petitioner is ready and willing to settle

even the entire amount to the persons, who invested in the business and he

had properties. However, the Government Authority is not taking any steps

to attach the property to realise the amount to settle in favour of the victims.

He also produced the deposition of other witnesses and he cross examined

each and every witnesses in respect of the agreement entered into between

the petitioner and the victims. He also produced the copy of the agreement

and the petitioner never issued any Fixed Deposit receipts to the victims. As

per the agreement, after investing the amount, they issued receipts.

4. Heard the learned counsel for the petitioner as well as the learned

Additional Government Pleader appearing for the respondent.

https://www.mhc.tn.gov.in/judis Crl.O.P.No.21670 of 2022

5. On a perusal of the impugned order, the Trial Court referred the

order passed by this Court in Cont.P.(MD).No.971 of 2020 dated

21.12.2020. This Court initiated contempt proceedings for non-compliance

of the order passed in Crl.A.(MD).No.113 of 2013. The Trial Court

acquitted the accused in C.C.No.8 of 2011 and aggrieved by the same, two

victims filed an appeal in Crl.A.(MD).No.113 of 2013 before this Court.

This Court set aside the judgement of acquittal by the order dated

08.08.2019 and remanded back the matter to the file of the Trial Court.

Further, the Investigating Officer was directed to file a petition under

Section 173(8) of Cr.P.C for conducting further investigation and it was

made clear that a supplementary final report has to be filed. However, the

Investigating Officer completed the further investigation and filed a closure

report. Therefore, the Contempt Petition was filed, in which, this Court

directed the Trial Court to invoke provisions under Section 165 of the

Indian Evidence Act, 1872.

https://www.mhc.tn.gov.in/judis Crl.O.P.No.21670 of 2022

6. This Court further observed that the said provision cannot be used

to dispense with the primary evidence of any document. The Trial Court

will ensure that most of the original deposit receipts (not all of them) are

marked not through each individual depositor, but through the Investigating

Officer. The Court can issue a direction to the Investigation Officer under

this provision and ask him to produce the documents at one go and most of

them can be marked through him. It was further observed that this Court had

not issued a comprehensive or exhaustive direction and this Court had only

called upon the Trial Court to think of innovative measures for the purpose

of fast-tracking the prosecutions arising under the TNPID Act. Therefore,

the Trial Court dispensed with the examination of 192 depositors and their

documents can be marked through the Investigating Officer, who examined

him. This Court held that the above said Contempt Petition is filed after

remanding the matter in the Criminal Appeal filed against the acquittal,

whereas in the case on hand, it is a fresh case and the trial proceedings are

going on. So far 334 prosecution witnesses have been examined out of 520

depositors. The learned counsel for the petitioner also produced a copy of

the agreement entered into between the petitioner and the victims and also

https://www.mhc.tn.gov.in/judis Crl.O.P.No.21670 of 2022

cross examination of other witnesses. Each and every witnesses have been

cross examined by the petitioner.

7. In the case on hand, there is no question of issuing of Fixed

Deposit receipts, whereas in pursuant to the agreement and on receipt of the

amount invested by the victims, they were issued receipts. Therefore,

necessarily the petitioner ought to have cross examined the witnesses each

and every time, while marking their respective agreement. As such, the

judgment cited by the Trial Court is not applicable to the case on hand.

8. In view of the above facts and circumstances of the case, the order

passed by the Special Court established under the TNPID Act, Coimbatore

in C.C.No.10 of 2014 dated 12.08.2022, is hereby set aside. The Trial Court

is directed to issue summons to all the remaining victims and the petitioner

is permitted to cross examine the witnesses in the manner known to law.

Consequently, the connected Miscellaneous Petition is closed.

https://www.mhc.tn.gov.in/judis Crl.O.P.No.21670 of 2022

9. With the above direction, this Criminal Original Petition is

allowed. Consequently, the connected Miscellaneous Petition is closed.

19.09.2022

Index:Yes/no Speaking/non speaking order kv

To

1. The Inspector of Police, Economic Offence Wing, Team-II, Namakkal.

2. The Public Prosecutor, High Court of Madras.

https://www.mhc.tn.gov.in/judis Crl.O.P.No.21670 of 2022

G.K.ILANTHIRAIYAN. J,

kv

Crl.O.P.No.21670 of 2022

19.09.2022

https://www.mhc.tn.gov.in/judis