RALLIS INDIA LIMITED Vs. K T VIJAYA KUMAR

JUDGEMENT

(1.) This criminal petition is filed by the accused Nos.1 and 2 under Section 482 Cr.P.C for quashing proceedings in C.F.No.2425 of 2007 on the file of I Additional Chief Metropolitan Magistrate, Vijayawada relating to offence under Section 499 I.P.C punishable under Section 500 I.P.C.

(2.) The first petitioner/A.1 is M/s.Rallis India Limited represented by its Managing Director. The second petitioner/A.2 is Company Secretary of A.1-company. Originally, the respondents 1 and 2/ complainants filed private complaint in the lower Court against A.l to A.9. A.3 is Managing Director and A.4 to A.9 are directors of A.1-company. The lower Court took cognizance of the case under Section 499/500 I.P.C against A.1 and A.2 only and did not take cognizance of the case against A.3 to A.9. After taking cognizance of the case, the lower Court registered the complaint as C.C.No.535 of 2007.

(3.) Respondents 1 and 2 are Managing Director and Chairman respectively of M/s.Chemcel Biotech limited, Vijayawada. The alleged imputation is contained in letter dated 14.12.2006 addressed by A.2 on behalf of A.1 to M/s.Ashika Capital Limited, Mumbai. This letter is the result of query made by M/s. Ashika Capital Limited, which is doing merchant banking and which is appointed as lead manager for public issue to be given by M/s.Chemcel Biotech Limited. As per SEBI Guidelines, the lead manager has to make enquiries and satisfy itself about allegations, if any, against promoters of the company going for public issue before approving draft prospectus of the company going to public issue. During the said activity, M/s.Ashika Capital Limited requested A.1- company to furnish information regarding promoters of M/s.Chemcel Biotech Limited going for public issue. While giving certain information, A.2, who is Company Secretary of A.1, addressed this letter dated 14.12.2006, which contained the following imputations.