SRI. PATNALA VENKATA RAMAKRISHNA AND TWO OTHERS Vs. M/S. MIDWEST (INDIA) INDUSTRIES LIMITED REP., BY OFFICIAL LIQUIDATOR, HIGH COURT OF A.P. HYDERABAD AND TWO OTHERS

JUDGEMENT

(1.) THESE applications are yet another instance of abuse of the judicial process, and its subversion. Several orders passed by the Company Court, the Division Bench of this Court and the Supreme Court are being thwarted by repeated petitions/applications being filed only to drag on proceedings, and thereby prevent the property of "Midwest (India) Industries Limited" (for short the "company"), i.e., Ac.9 -16 guntas in Survey No. 451 of Puppalguda Village, from being sold and its proceeds utilized for repayment of the amounts deposited by the depositors of the "company" all of whom have been waiting for nearly a decade and a half to receive even the "principal" repayable to them. C.A.No.1598 of 2011 is filed by Sri P. Venkataramakrishna and two others seeking a direction from this Court to stay all further proceedings, including auction of the property of an extent of Ac.9 -16 guntas in Survey No. 451 of Puppalguda Village, Rajendranagar Mandal, Ranga Reddy District, by way of publication of a "Notice Inviting Sealed Tenders -Cum -Negotiations" dated 01.08.2011 pursuant to the orders of this Court in C.A. No. 675 of 2011 in C.P. No. 39 of 2000 dated 05.07.2011. C.A. No. 1599 of 2011 is filed, by the applicants in C.A. No. 1598 of 2011, for a direction from this Court to delete an extent of Ac.0 -39 guntas of land in Survey No. 451/AA of Puppalguda Village from the auction proceedings, and consequently declare that the applicants are bona fide purchasers of the said extent of land.

(2.) C .A.No.1600 of 2011 is filed by Sri T. Somalingam and two others for a direction from this Court to stay all further proceedings, including auction of the property of Ac.9 -16 guntas, in Survey No. 451 of Puppalguda Village, by way of publication of "Notice Inviting Sealed Tenders -Cum -Negotiations" dated 01.08.2011, pursuant to the orders of this Court in C.A. No. 675 of 2011 in C.P. No. 39 of 2000 dated 05.07.2011. C.A. No. 1601 of 2011 is filed, by the applicants in C.A. No. 1600 of 2011, for a direction from this Court to delete Ac.0 -39 guntas of land in Survey No. 451/AA of Puppalguda Village from the auction proceedings, and consequently declare that the applicants are bona fide purchasers of the said extent of land.

(3.) BEFORE examining the rival contentions it is necessary to refer to certain events and orders passed by this Court, and the Supreme Court earlier. Dr. N.R. Pinna, the promoter and Managing Director of the "company" filed W.P. No. 32498 of 1998 seeking a direction to the respondents therein to cause an enquiry before registering any crime against the petitioners as and when complaints were lodged against them. This Court initially directed the petitioners to file affidavits furnishing details of the depositors, and the schedule of payments. The information furnished by the petitioners revealed that the deposits which had matured in the year 1996 were for Rs. 43,58,220/ -; the deposits which matured in the years 1997 and 1998 were for Rs. 1.90 crores and Rs. 8.90 crores respectively; and the said amounts were yet to be paid to the depositors. This Court passed an interim order on 08.02.1999 appointing Advocate -Commissioners. On being informed by the depositors association that the "Company" had cheated the depositors, this Court noted that the petitioners had not deposited any amount nor had they furnished a bank guarantee for Rs. 10,00,000/ - as directed by this Court; and they had also failed to furnish details of their movable and immovable properties, or the title deeds of the immovable properties owned by the Company at Mumbai, or the Balance Sheets, to the Advocate Commissioners; the Advocate Commissioners had informed the Court of the properties owned by the "Company", as also details of the claims received from various depositors; they had informed that the "Company" had not deposited any amount; and that the Reserve Bank of India had issued a notification warning the public not to deposit money in the "Company". This Court, after noting that the fate of lakhs of depositors, defrauded by the Company, was still uncertain, directed the Reserve Bank of India to initiate criminal proceedings against the petitioners, and file an application for winding up of the "company", both under Section 45 - MC of the Reserve Bank of India Act and the Companies Act treating the registered office of the Company as being situated at Hyderabad since the registered office at Mumbai had ceased to function for a number of years, and the Hyderabad office was alone being operated. This Court also directed that the facility of two gun -men granted to the first petitioner would stand revoked; he should be immediately arrested by Begumpet police in connection with the pending crimes; he should not be granted bail by any subordinate Court in the State till the entire investigation was completed by the CBCID; and the order of bail, if any, granted by the lower Courts, in Crime Nos.204, 207 and 238 of 1998 of Begumpet Police Station, would stand cancelled.