CHANDRA SHEKHAR GUPTA Vs. STATE OF BIHAR

JUDGEMENT

(1.) S .N. Pathak J. - This quashing application is directed against the order of cognizance dated 18.02.1997 in Complaint Case No. 1437(C) of 1996.

(2.) THE alleged facts in the complaint petition are to the effect that the complainant is the President of an Industrial Unit in the name and style of ''M/s Blue Heavens Agro Industries Limited '', duty registered under the Companies Act. Its business is of manufacturing fruit juice. The aforesaid industrial company, to complement its financial stability, decided to float investors ' shares of Rs. 130.33 lacs. The complainant 's company entered into an agreement with the T.C.I. Finance Limited at Delhi on 10.05.1995 and the T.C.I. agreed to become its lead manager of public issue of shares. As per the agreement, the complainant had to pay rupees three lacs as fee to the lead manager. As per the agreement, the accused persons including the T.C.I. and the Uco Bank among others, have to manage the each and everyday affair regarding the public issue of shares. The complainant, inter alia, further alleged that shares money to the tune of Rs. 27.50 lacs were collected by the Uco Bank and the same were paid to the T.C.I. Finance Company at Delhi. Although other banks paid their amount collected through shares to the complainant. So the complainant alleged misappropriation of Rs. 27.50 lacs by the T.C.I. Company at Delhi and the Uco Bank.

(3.) SO far territorial jurisdiction is concerned it has to be seen whether, of course, agreement between the complainant and accused Company including the bank were entered into beyond the jurisdiction of Patna. The statement in paragraph -12 of the complaint petition shows that the complainant had requested the concerned banks and the T.C.I. Company to transfer the money collected through shares to its bank at Patna. At paragraph -12, it is also stated that all the other banks except the accused Uco Bank transferred the money to the Patna bank of the complainant. The Uco Bank failed to transfer the money to the tune of Rs. 27.50 lacs to the complainant in the Bank of India, Patna Branch, and the T.C.I. Company and the Uco Bank, both in collusion, misappropriated the amount by transferring the same to T.C.I. Company at Delhi.