THUMMALA PRADEEP REDDY Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) This writ petition is filed seeking a declaration that the alleged action of respondents Nos. 2 to 4 in falsely implicating the petitioner in criminal cases which were filed against Harsha Leafin Commercial Ltd., Warangal, as arbitrary and illegal and consequently to quash the proceedings in FIR No. 95 of 2004 on the file of Kothagudem III town Police Station, Khammam district.

(2.) It is stated that the petitioner along with some others established a company by name Harsha Leafin Commercial Ltd., which was incorporated under the Companies Act, 1956, and a certificate of commencement of business was issued by the Registrar of Companies in the year 1996. The main objects of the company was to carry on the business of financiers, to receive money on deposit at interest or otherwise for fixed periods and to lend money on any terms that may be thought fit to any person, firm, company, etc. The petitioner was one of the directors of the said company. However, due to personal reasons, he tendered his resignation as director of the company and the same was accepted by the board of directors on March 25, 1999, and it was also incorporated in the Registrar of Companies in Form No. 32. It is claimed that he has settled all his liabilities with the company and issued a notice in Krishnapatrika Telugu daily on February 8, 1999, calling for objections, if any, from shareholders/interested persons, apart from the personal notices issued to the shareholders by book-post. After his resignation, he personally issued another notice in Krishnapatrika on March 17, 1999, informing the shareholders and the general public the fact that his resignation was accepted. While so, it appears that some of the subscribers who did not receive their monies from the company after their fixed deposits were matured, lodged criminal complaints in the concerned police stations in Warangal, Karimnagar and Khammam Districts against the company as well as its directors. In pursuance thereof, the police without making the necessary enquiries with the Registrar of Companies, have been registering cases against the petitioner in spite of the fact that he has resigned as director long back and is in no way connected with the day-today affairs of the company. One of the cases so registered was Crime No. 95 of 2004 on the file of the P. S. Kothagudem Ill-town police station, Khamman district. It is alleged that the said crime was registered in spite of the fact that his name did not figure in the FIR. Hence, this writ petition contending, inter alia, that the action of the respondents in implicating him in the criminal cases without application of mind as to the status of the company is arbitrary and illegal and therefore to quash the proceedings in Cr. No. 95 of 2004.

(3.) On behalf of respondents Nos. 4 and 5, the Station House Officer, P. S. Kothagudem III town, police station, Khamman district, filed a counter-affidavit stating that the petitioner was the managing director of the finance company-M/s. Harsha Leafin Commercial Ltd. It is alleged that they induced the public by making wide publicity and collected lakhs of rupees by way of deposits, but failed to pay the amounts after the maturity period and wound up the company. In the circumstances basing on the complaints received from the depositors, a case was registered in Cr. No. 16 of 2004 and Cr. No. 95 of 2004 under Sections 406 and 420 of the Indian Penal Code on the file of P. S. Kothagudem III-town, police station, Kham-man District. Though the other directors were arrested, the petitioner was absconding from the date of the offence. The allegation made by the petitioner that the respondents are harassing him and calling him to the police station frequently has been denied and it is stated that the writ petition is misconceived and liable to be dismissed since the petitioner has cheated innocent people not only in the State of Andhra Pradesh, but also in the other States.