N.KANAGASABAI Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) Trn & Sons at Chidambaram, in Cuddalore District, is a Financial Establishment in terms of Section 2(3) of the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments), Act 1997 (hereinafter referred to as, 'the Act'). The said financial establishment collected huge deposits from public. Finally, the said establishment failed to repay the said deposits with interests as assured. Therefore, the depositors made complaints to the police. Based on the same, a case in Crime No. 4 of 2004 under Section 420 of IPC and Section 5 of TNPID Act was registered by the Economic Offences Wing Police at Cuddalore. Totally, there were as many as eight accused in the said case. During the investigation of the case, the Inspector General of Police, Economic Offences Wing-II, Chennai submitted a letter to the Government in C1/9411/Economic Offences Wing/2006, dated 20.4.2007, requesting the Government to attach the properties belonging to the partners of the said Establishment since the properties in the name of the establishment would not be sufficient to meet the demands. Having considered the same, the Government issued G.O. Ms. No. 1461, Home (Police-19) Department, dated 17.10.2007 attaching as many as 19 properties by way of an order of interim attachment under Section 3 of the Act. Though the said order was passed on 17.10.2007 as required under Section 4(3) of the Act, the competent authority, namely, the District Revenue Officer, Cuddalore, did not make any application to the Special Court seeking to make the interim order of attachment as absolute. While so, the petitioners filed this Writ Petition seeking to quash the said Government Order in G.O. Ms. No. 1461 dated 17.10.2007. On admitting the Writ Petition, this Court granted an interim order, directing the respondents not to disturb the possession of the petitioners. The said order came to be passed on 16.12.2007. According to the respondents, in view of the said interim order of this Court, no further application was made under Section 4 of the Act.

(2.) Subsequently, on completing the investigation, the Inspector of Police, Economic Offences Wing, filed a final report before the Special Court upon which the learned Judge has taken cognizance in C.C. No. 47 of 2006. In the said final report, 8 persons are arrayed as accused including these two petitioners.

(3.) Before the learned Judge, the petitioners filed a petition seeking discharge from the said case. The said petition in Crl. M.P. No. 5851 of 2007 was dismissed by the Special Court by order dated 19.5.2009. Challenging the same, the petitioners filed Revisions before this Court in Crl. R.C. Nos. 591 and 1041 of 2009. By order dated 4.8.2009, Crl.R.C. No. 591 of 2009 was allowed and by order dated 1.2.2011 Crl. R.C. 1041 was allowed by this Court thereby discharging these two petitioners from the case. As against the said discharge order passed in favour of the 2nd petitioner, the State went on Special Leave Appeal to the Honourable Supreme Court in S.L.P. (Crl.M.P.) No. 20243 of 2009. The same was dismissed by the Hon'ble Supreme Court on 1.2.2010. Thus, the case against the rest of the accused alone is still pending trial before the learned Special Judge.