V SUBRAMANIAN Vs. STATE

JUDGEMENT

(1.) THIS Criminal Original Petition is filed to call for the records in CC.No,52/2006 on the file of the Special Court at Chennai under Tamil Nadu Protection of Interest of Depositors (In Finance Establishments) Act 1997 and quash the proceedings as far as the Petitioners are concerned. THIS Criminal Original Petition is filed to quash the proceedings in CC.NO.52/2006 against the Petitioners, who are arrayed as A8, A6, A9 and A10 on the file of the Special Court, Chennai for the offences under the provisions of the Tamil Nadu Protection of Interest of Depositors Act (In Finance Establishments) Act, 1997 (herein after referred to as the Act).

(2.) THE basic facts of the case are as follows:- M/s.Sri Arunachaleswara Mills (herein after referred to as the Mills) is a Partnership Firm and the original partners are A2 to A5 and they were managing the Mills from 1966 onwards. THE Mills was collecting deposits from the public from 1988 onwards on a promise to repay the same with interest and whole of these transactions had come to an end by 1996. THEreafter, i.e. from 1996 onwards, there were no fresh deposits, but the earlier deposits were being renewed along with the outstanding interest and in pursuance of it, fresh deposit receipts were issued. THE deposit receipts were issued in the name of "Sri Arunachala Investment Company", which is only a name lender, under which only the said Mills was transacting the business. In the due course, the Mills became sick with serious attendant financial difficulties and they were not able to make payment even towards the statutory dues, such as wages to workers, electricity charges, employees provident fund, etc.

(3.) ACCORDING to the Petitioners, since they took over the affairs of the Management of the Company from 25.11.2000, they cannot be made responsible for any act done by the erstwhile partners who actually collected the deposits and failed to repay the same. The main contention of the Petitioners is that that they ought not to have been made as accused in the proceedings in CC.No,52/2006 as it cannot be said that they have committed any violation of the provisions of the said Act or committed any offence punishable under Section 420 of IPC. On the above said ground, the Petitioners seek to quash the proceedings in the complaint.