G SUMATI Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) The above criminal original petition has been filed under Section 482 of the Code of Criminal Procedure praying to call for the records in STC.No.843 of 2001 by the Court of Judicial Magistrate, Vedasandur and quash the same as against the petitioner and for the other reliefs as found in the prayer column of the petition.

(2.) The petitioner would submit that the case is not maintainable against her on ground that the petitioner is a whole time employee and the General Manager of the Industrial Development Bank of India, which engaged in the business of financing medium and large scale industries; that she has been appointed as a Nominee Director in the Board of G.K.Steel and Allied Industries Limited (the first accused in the above case) and was never in charge of or concerned with the day-to-day management of the first accused company and that such arrangements have been made in accordance with the terms and conditions of the loan agreement and other documents executed between the said company and the Industrial Development Bank of India; that the petitioner's nomination to the said Board had also expired on 10.4.2001 itself vide the withdrawal of nomination by I.D.B.I. from the Board of the said company, prior to the commission of the alleged offence; that as per Section 30A of the Industrial Development Bank of India Act, 1964, `a Director appointed in pursuance of an arrangement entered into between IDBI and an industrial concern does not incur any obligation or liability by reason only of the person being a nominee Director or for anything done or omitted to be done in good faith, in discharge of duties as a Director or anything in relation thereto.' On such grounds, the petitioner has come forward to seek for the relief extracted supra.

(3.) The learned counsel appearing on behalf of the petitioner would submit that since the petitioner is fully entitled to the benefit of Section 30A of the Act, he would pray for the grant of the prayer of the petition.