N.K.PROTEINS Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The Appeal filed under Sec. 11 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999, raise a challenge to the order passed on 1/01/2019 (Exhibit 2) by the designated MPID Court of Sessions for Greater Mumbai, in Miscellaneous Application No.1512 of 2017, in MPID Special Case No.1 of 2014, thereby accepting the reasons and justification advanced by the Competent Authority, in filing an affidavit as contemplated under Sec. 5(3) of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 under Exhibit 256, beyond period of 30 days.

(2.) We have heard learned senior Advocate Mr. Subodh Desai, along with Mr. Amit Ghag for the appellant and Ms. Rebecca Gonsalvez, the Special Public Prosecutor for respondent nos.1 as well as the Competent Authority i.e. respondent no.2.

(3.) The learned senior counsel Mr. Desai, has taken us through the scheme of the MPID Act of 1999, which is an enactment to protect the interest of depositors of the financial establishments and by inviting our attention to its statement of objects and reasons, in light of the scheme and said provisions, he would submit that upon a default by the 'Financial Establishment' in repayment of deposit on maturity along with the benefit in form of interest, bonus, profit, or in any other form as promised, every person including the promoter partner, director, manager, or any other person or an employee responsible for management of or conducting of the business or affairs of such financial establishment is liable for a penalty under Sec. 3 thereof.