S V ARUMUGAM Vs. STATE

JUDGEMENT

(1.) The present petition, filed under Section 482 of the Code of Criminal Procedure 1973, seeks quashing of complaint No.1323/1/2006 filed by respondent No.2 impleading a private limited company, its Managing Director i.e. the petitioner and its Manager (Legal) as the accused and the order dated 02.09.2009 passed by the learned Metropolitan Magistrate summoning the petitioner to face trial for the offences punishable under Sections 409/420/ 467/471 read with Section 120B IPC is also challenged.

(2.) In a nutshell, the relevant facts are that petitioner S.V.Arumugam is admittedly the Managing Director of the company Shiva Texyarn Limited (formerly known as Annamalai Finance Limited), incorporated under the Indian Companies Act 1956 and engaged in the business of finance.

(3.) On 04.04.1995 Annamalai Finance Limited (hereinafter referred to as the =Annamalai Company ) sanctioned a loan in sum of 6,00,000/- to M/s.Ashok Kriplani & Co., a proprietorship concern of respondent No.2 Ashok Kriplani i.e. the complainant, and disbursed the said sum in three installments in sum of 2,00,000/- each to the respondent No.2 on 04.04.1995, 12.06.1995 and 26.04.1995 respectively. In order to secure repayment of said loan, by way of security, the respondent No.2 pledged certain shares belonging to him. The respondent No.2 also mortgaged the first floor of property bearing Municipal No.10/18, Old Rajinder Nagar, New Delhi by depositing the title deed of the said property vide Memorandum of Deposit of Title Deeds dated 26.04.1995 and on 27.04.1995 i.e. the next date wrote a letter in acknowledgement of the mortgage. A loan agreement dated 04.04.1995 styled as =Agreement cum Pledge was executed between Annamalai Company and the respondent No.2, the relevant terms whereof read as under:-