VLS FINANCE LTD. Vs. STATE

JUDGEMENT

(1.) By this petition under Section 482 of the Code of Criminal Procedure (hereinafter referred to as 'Cr.P.C.') read with Article 227 of the Constitution of India, the petitioner seeks directions to expeditiously dispose of the long pending application under Sections 102/451/457 of Cr.P.C.

(2.) The brief facts as set out in the charge-sheet are that on 11.03.1995 the accused persons induced the complainant, M/s. VLS Finance Ltd. to enter into a Memorandum of Understanding and were obliged to subscribe 70 lakhs equity shares of M/s. Sunair Hotels Ltd. The petitioner was informed by the accused persons that 2,09,91,600 shares of M/s. Sunair Hotels Ltd. have been sold in favour of promoters/ directors i.e. accused persons and their family members/ associates and while 70 lakhs shares had been issued in favour of the petitioner. The complainant company had made some payments towards security deposits. The accused persons used Rs.70,00,000/- towards share application money along with another sum of Rs.30,00,000/- deposited by the complainant company in aggregate amounting to Rs. 1,00,00,000/- (Rupees one crores), twenty one times to show infusion of Rs.21,00,00,000/- (Rupees Twenty one crores only) equity capital in M/s. Sunair Hotels Ltd. and to issue shares to the accused persons and their family members/ associates. The accused persons being the Directors were custodian of the property of M/s. Sunair Hotels Ltd. and the funds of complainant company have dishonestly and fraudulently been misappropriated.

(3.) In July, 2009 the complainant moved an application under Sections 451/457 of Cr.P.C. before the trial Court on the ground that the shares, being case property and derivative contraband, should remain seized and nobody should be allowed to use the same except in accordance with the directions of this Court. The accused persons also moved an application questioning maintainability of the said application.