JANAK C MEHTA Vs. STATE REP

JUDGEMENT

(1.) Criminal O.P.No.4613 of 2004 has been filed under Section 482 Cr.P.C., to quash the case in X Crime No.5 of 2003 on the file of the respondent.

(2.) The brief facts of the case are as follows:- The first petitioner/A1, President of N/s.L.K.P.Shares and Securities Ltd., The second petitioner/A2 is the Branch Coordinator of the above said companies. The company deals in buying and selling of shares among other business and have branches all over India. The first and second accused work in the Head Office of the Company at Mumbai. Every branch is independent entity and has its own manager. Who is responsible for the day-to-day business of the branch. The first and second accused rarely used to visit the Chennai branch. The third accused was the Manager of the Chennai branch. The third accused was totally in charge and responsible for the day-to-day affairs of the branch. The auditors of the company who audit the accounts regularly prepare their accounts based on the inputs given by the branch head/A3.

(3.) One Kalyani who is impleaded as intervener, lodged a complaint with the respondent alleging that she was having Account No.K-4 with LKP Shares and Securities for the purpose of trading in shares on the National Stock Exchange. At the end of the year 2000, there was a credit balance of Rs.9.57 lakhs in the her account and also shares worth Rs.11.97 lakhs were not delivered by LKP Shares and Securities. She also opened an account with LKP Shares and Securities during February 2000 in the name of Sri RSR Securities Pvt. Ltd., for the purpose of trading in shares, in account No R-14. The third accused by name Rajagopal operated the account maintained in the name of RSR Securities Pvt., Ltd., without the complainant's (Kalyani) knowledge or consent and there exists a debit balance of Rs.21.08 lakhs in the said account No.R14 of RSR Securities Pvt., Ltd., Thereafter the complainant-Kalyani and her husband stepped down as Directors of RSR Securities Pvt Ltd., and Rajagopal and the complainant's brother one Mr.Sridhar took charge as Directors of RSR Securities Pvt.,Ltd., It is alleged that Rajagopal promised to take over liability of RSR Securities Pvt., Ltd., being the aforesaid debit balance. But, Rajagopal failed to pay the amount of Rs.9.57 lakhs being credit balance in the account of the complainant, (Account No.K.4) and also Rs.11.97 lakhs, being the value of the undelivered shares.