N DURAISAMY Vs. STATE

JUDGEMENT

(1.) THE fourth accused and the fifth accused in C. C. No. 18 of 2003 on the file of the learned II Additional Sessions Judge (CBI Cases), Coimbatore have respectively preferred the aforesaid criminal original petitions.

(2.) THE common contention of the petitioners is that they were carrying on partnership business by name M/s. Banu Knitters in exporting garments. N. Muthusamy was the Managing Director and he was in charge of the business, managing the export of garments and regulating the financial aspects. The petitioner in Crl. O. P. No. 992 of 2007 was looking after the factory and the petitioner in Crl. O. P. No. 993 of 2007 was a sleeping partner. A loan was raised from Syndicate Bank with the consent of Canara Bank by the partnership firm M/s. Banu Knitters. The Syndicate Bank filed suit in O. A. No. 8 of 1997 against the firm before the Debt Recovery Tribunal, Chennai for recovery of a sum of Rs. 2,13,46,834/= from the firm. The money dispute was settled under a one time settlement scheme and thereupon, the suit was withdrawn by the bank. The Special Director of Enforcement conducted an enquiry under section 18 (2) of the Foreign Exchange Regulations Act wherein he had found that the said Muthusamy looked after all the export activities and was responsible for realisation of the proceeds. The petitioner in Crl. O. P. No. 992 of 2007 was just looking after the factory and the manufacturing activities. The liability of the bank was also discharged. There is no prima facie material to implicate the petitioners and therefore, the complaint lodged as against the petitioners are liable to be quashed, it is contended.

(3.) THE points that arise for determination are