V BALA KOTAIAH Vs. STATE OF A P

JUDGEMENT

(1.) This Criminal Petition has been filed under Section 482 of Cr.P.C. to quash the proceedings in C.C.No.53 of 2005 on the file of the It Chief Metropolitan Magistrate, Visakhapatnam.

(2.) At the instance of third respondent, a crime was registered against A-1 to A-3 for the offences punishable tinder Sections 406, 409 and 201 I.P.C. and after completion cf the investigation, the police laid the charge sheet. It is specifically averrec that the accused had withdrawn an amount of Rs.65,000/- and Rs.1,30,000/- vide cheques bearing Nos.96455 and 96456, dated 28-02-2004 and 08-05-2004 respectively, upon which all the three accused signed from the S.B. Account No. 19373 of Andhra Bank, Dabagardens branch.Visakhapatnam and misappropriated the association amount of Rs.1,95,000/- for their personal gain. Later, they could not account for the same apart from the other amounts taken by them.

(3.) The learned counsel for the petitioners submitted that whenever there is any allegation of misappropriation, the matter has to be referred to the Registrar of Co-operative Societies and the Registrar has to make an enquiry and give a finding whether there is any truth in the allegation and the complainant cannot directly approach the police for prosecution without referring the matter to the Registrar of Co-operative Societies. In support of his contention the learned counsel, relied on a judgment of a Division Bench of this Court in Salauddin Owaisi and others v. State, D.S.P., C.I.D., S.D.T., Hyderabad, 2000 (2) ALT (Crl. 184 (D.B.) (A.P.) wherein it was held as follows: when any dispute touching the constitution, management or the business of the society arises. the same has to be referred to the Registrar for his decision and his decision shall be final. Unless strong reasons are made out for launching criminal prosecution under the provisions of the Indian Penal Code, initiation of prosecution under the provisions of IPC cannot be resorted to. As discussed by them elaborately in the foregoing paragraphs, the allegations made against each petitioner in the charge sheet and the statements of witnesses recorded even if taken at their face value, do not disclose the essential ingredients of the main offences under Sections 420, 468, 471, 120-B IPC."