J.M. FINANCIAL ASSET MANAGEMENT LTD. Vs. CHANNEGOWDA

JUDGEMENT

(1.) This Criminal petition is filed under Sec. 482 of Cr.P.C., seeking to quash the order dtd. 22/3/2016 passed by the IV Additional Senior Judge, Madhugiri, who confirmed the issuance of summons as against the petitioner by the order dtd. 7/7/2012 in (PCR.NO.56/2011) C.C.No.760/2012 on the file of the Additional Civil Judge and JMFC, Madhugiri.

(2.) Learned Senior counsel appearing for the Petitioner-Company submits that respondent No.1 - Complainant filed a private complaint in P.C.R.No.56/2011 before the Judicial Magistrate First Class, Madhugiri on 26/8/2011 alleging offences under Sec. 418, 420 read with 34 of IPC wherein respondent No.2 - The Manager of ING Vysya Bank Limited was arraigned as accused No.1 The accused No.2 and 3 are the Managing Director, Chief Executive of M/s J.M. Financial Asset Management Limited (Petitioner herein) and the Investment Manager of the Company. Learned Senior Counsel submits that in the complaint the complainant has stated that he had deposited a sum of Rs.5,00,000.00 (Rupees Five Lakhs Only) with ING Vysya Bank Limited, Kodigehalli Branch, Madhugiri Taluk, in the year 2008. It is contended by the complainant that the respondent No.2 - The Manager of ING Vysya Bank, recommended to the complainant that if he were to invest the said amount with the Petitioner-Company by way of shares, the complainant would be reaping huge dividends. On the recommendation of the respondent No.2, the complainant invested the said sum of Rs.5,00,000.00(Rupees Five Lakhs Only) with the petitioner - accused for purchasing shares. It is contended that in the year 2011, when particulars were sought by the complainant from the petitioner - accused regarding share value, the complainant was informed that his share value had come down to Rs.50,000.00 (Rupees Fifty Thousand Rupees only). It is in the light of this reduction in the share value that a private complaint was lodged by the complainant making allegations against the Manager of ING Vysya Bank, The Managing Director and Investment Manager of the Petitioner - Company, alleging that the accused were aware of the statutory duty and obligations to give true and actual facts of the share business and having not discharged those duties and obligations and without giving any actual and true particulars about the investment of money of Rs.5,00,000.00 (Rupees Five Lakhs Only) to the complainant, on the shares of the Company, once in a month atleast, and without disclosing the loss incurred in spite of receiving legal notice dtd. 18/3/2011, the accused persons have committed wrongful loss to the complainant and are guilty of wrongful gain to themselves.

(3.) The learned Senior Counsel submits that learned Magistrate, who was required to apply his mind as to whether the complaint constitutes any criminal offence, has proceeded to record sworn statement of respondent No.1 and took cognizance and registered the case in C.C. Register and issued process to the accused persons. Being aggrieved, the petitioner - Company filed a Criminal petition invoking Sec. 482 of the Code of Criminal Procedure in Crl.P.No.7399/2013 seeking quashing of the proceedings before the trial Court. This Court by order dtd. 16/7/2015, directed the petitioner to seek remedy before the Sessions Court under Sec. 397 of Cr.P.C., This Court had directed the petitioner to file Revision Petition on or before 14/8/2015. However, the Revision Petition was filed with a delay of 14 days, after the time granted by this Court. The Revisional Court dismissed the petition on merits while declining to condone the delay. Being aggrieved by the order passed by the Revisional Court, this petition is filed with a prayer to quash the order dtd. 22/3/2016 passed by the Revisional Court as well as the order dtd. 7/7/2012 in C.C.No.760/2012 arising out of P.C.R.No.56/2011 and for further relief.