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TMI Blog2014 (6) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... . P.C., wherein prayer was made to grant interim custody of the vehicles mentioned in those petitions. 4. Pursuant to the orders passed by the Hon'ble Acting Chief Justice, the Criminal Revision Cases and the Writ Petition have been clubbed together and posted for being heard together. 5. The case of the petitioner is that they granted financial assistance to the private respondents and its Partners/Directors, for purchase of vehicles, whose registration numbers have been mentioned in the prayer in the writ petition. Since, the private respondent/purchasers failed to repay the loan amount, the petitioner had taken steps to repossess the vehicle. At that stage, they came to know that the fourth respondent Police have registered a criminal case against the private respondent/directors/partners under Section 120(b), 406 & 420 IPC read with Section 5 of the TNPID Act in various crime numbers and the vehicles which were financed by the petitioner, were seized by the fourth respondent Police in connection with the said criminal cases. The petitioner would contend that they are the owner of the vehicles, as there is a hypothetication agreement between the petitioner and the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the application. 9. Pursuant thereto, the petitioner filed seven applications before the Special Court for TNPID cases, Coimbatore, under Sections 451 & 457 Cr. P.C., with a prayer to grant the interim custody of the vehicles. The fourth respondent herein resisted the application by filing a counter affidavit stating that the private respondents had received deposits from the public by promoting various schemes and by supplying EMU birds to the depositors and promising hefty returns and since the private respondents defaulted in payment one Mr. R. Ramasamy, lodged a complaint with the respondent Police and after due enquiry, a case was registered against the accused for offences under Section 120(b), 406 & 420 IPC and Section 5 of the TNPID Act, 1997 and the matter was taken up for investigation. 10. It was further stated that there are more than 1000 depositors and the amount defaulted is about Rs. 27 crores and the Government had passed an order dated 12.07.2013, ordering attachment of the vehicles and other immovable properties owned by the accused and that investigation revealed that the accused diverted the deposited amount for the purchase of the vehicles and therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority and Revenue Officer Coimbatore & Ors., reported in 2014-1-L.W., 168. 12. The learned Additional Public Prosecutor resisted the prayer made by the petitioner by reiterating the contention raised before the Special Court and submitted that the order of the interim attachment has been made and application has also been made before the Special Court seeking permanent attachment of the vehicles. The learned Additional Public Prosecutor referred to the common status report filed by the Inspector of Police, EOW-II, Erode District and submitted that all the vehicles were purchased from the public money and if the vehicles are returned to the petitioner as prayed for, the innocent depositors will be put to hardship and loss and till the cases are disposed of, the vehicles should be kept in judicial custody. 13. Since the issue involved in both the Writ Petitions as well as the Criminal Revision Cases are inter-linked, this Court would proceed to first consider the prayer sought for in the writ petition. 14. The writ petition has been filed to quash the Government Order in G.O. Ms. No. 178, dated 19.03.2013. The Government took note of the fact that the complaints were received fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment under Section 3, the seizure which is sought to be focused by the petitioner, is not to be understood in the strict terms, but an action done by the fourth respondent Police with a view to protect the assets, thereby to protect the interest of the depositors. Therefore, on the grounds raised by the petitioner, the impugned Government Order cannot be quashed. 17. This Court in the case of S. Parathasarathy and Ors., vs. S. Arumugam and Ors., reported in 2006 (1) CTC 707, held that after passing an interim order of attachment by the competent authority, this is Special Court has to deal with all subsequent proceedings relating to attachment namely, either to modify or vary or revoke the order of attachment and the writ petition is not maintainable. It is to be borne in mind that the statute intends to protect the deposits made by public in financial establishment and when several complaints have been received by the Government from the depositors regarding the non-return of the deposits, the Government can attach the properties of such establishments. Therefore, the petitioner cannot be said to have been aggrieved by the order of ad-interim attachment. 18. Admittedly, the vehi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Interest of Depositors (in Financial Establishments) Act. In case, the vehicles are still under the custody of the police, necessarily it should be produced before the Special Court. 5. The petitioner is given liberty to make an application before the Special Court claiming interim custody of the vehicles under Section 451 Cr. P.C. In case, any such application is made, the same should be considered and disposed of by the Special Court, with notice to all concerned, as expeditiously as possible and in any case, within a period of two months from the date of receipt of such application. 6. The writ petitions are allowed to the extent indicated above. No costs. 21. The writ petitions filed by the petitioner were allowed to the extent indicated above, giving liberty to move an application before the Special Court, claiming interim custody of the vehicles under Section 451 Cr. P.C. and there was a direction to the Special Court to dispose of the said application within a time frame. Therefore, the proper procedure that should have been adopted is by adjudicating the rights of the petitioner to seek for interim attachment. While doing so, the Court was bound to examine the right, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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