A V MOHAN RAO Vs. M KISHAN RAO

JUDGEMENT

(1.) This is a petition filed under Section 482 of the Code of Criminal Procedure praying to quash the proceedings in C.C.No. 24 of 1999 on the file of the Court of the Special Judge for Economic Offences at Hyderabad. The petitioners are the accused Nos. 1 and 2 in the said C.C., which came to be filed by way of private complaint by the first respondent herein alleging the commission of offences under Sections 60, 63, 68, 68-A read with Section 621 of the Companies Act. The first respondent is a shareholder in a company called M/s. Spectrum Power Generation Limited, Hyderabad which has its registered office at Hyderabad. The petitioners herein are the directors of the said company.

(2.) The allegations of the complaint are that the petitioners floated a Company in United States of America (U.S.A.) M/s. Spectrum Technologies USA INC at New York. In the said company, both the petitioners own 5,000 of the shares each. The accused also floated an offshore company called Spectrum Infrastructures Ltd., at Jersey, Channel Islands, wherein once again both the petitioners hold 50% share each. Another company called Spectrum Infrastructures Ltd., at Mauritius was floated by the petitioners with a similar share holding as mentioned above. Further a Company known as Spectrum Technologies USA INC, Port Louis, at Mauritius was created. The said company is totally owned by the Spectrum Infrastructures Limited at Mauritius. A fourth company by name Spectrum Technologies USA INC at Mauritius was created by the accused in association with the aforesaid people. According to the complaint, all the abovementioned companies are wholly owned and controlled by the accused-petitioners herein.

(3.) As the matters stood thus, the first of the companies mentioned above - the Spectrum Infrastructures Ltd., Jersey, Channel Islands issued a document styled as "Project Overview". The said company issued a letter dated 30-9-1994 by the first accused. As the whole case revolves round this particular letter, the relevant portion of the said letter is extracted and it reads as follows: