9911796707
TMI Blog2023 (9) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... hich would clearly confirm that they resigned from the Directorship much before the alleged commission of offence and to that effect, the petitioners filed Form 32 with the Registrar of Companies - there is no specific averment of any irregularity committed by the petitioners during the relevant period. From the facts, it is clearly seen that, when the petitioners were not Directors of the Companies at the relevant period. Admittedly, the offence and the cause of action taken place during the years 2010 and 2011, but the present complaint is filed in the year 2014. The admitted case of the respondent is that the offence of submission of falsification of accounts have been taken place during the year 2010-11. The cessation of Directors has been admitted and the same tabulated in the complaint. In view of such admitted position, the case against the petitioners to be considered along with the Balance sheet submitted by them - In the document submitted it was found that maximum data manipulation and falsification of accounts have been done by the Company and the Company Balance sheet do not project fair picture of the affairs of the Company. As regards the persons, who have sign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent in C.C.No.4345 of 2016 is as follows:- (i) The Director, SFIO ordered for investigation under Section 235 of the Companies Act, 1956, (now under Section 210 of Companies Act, 2013) against M/s.Goldquest International Private Ltd (Gold Quest) and M/s.Questnet Enterprises India Private Ltd (Questnet) vide Order dated 28.07.2010. The Investigation reveals that the Gold Quest was registered on 18.01.2001 with ROC, Chennai. The business of the Company was of selling numismatic products in the form of specially crafted gold / silver coins, which claimed to be limited edition, import from Germany. It was a direct sale through personal approach and based on referral system. Questnet was incorporated on 25.11.2004, in which, Gold Quest had substantial share capital. Further, it had increased the share capital in the year 2002. Initially, the shareholders of Gold Quest were U.K.Venkatrao, Nitai Panchmatya and N.S.Narayanan, thereafter, eight members made as Directors from the year 2002 to 2007 and some of them ceased to be the Directors on various dates. (ii) Likewise, Questnet at the time of incorporation Pushpam Appalanaidu and Joseph Augustine are Major shareholders. Thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1112.99 Crores, till May 2008. Kingpin of the whole scheme one Mr.Vijay Eswaran was made as Director of Goldquest on 26.03.2002 and after starting the chain of sales of pyramid and setting up the module of sale and siphoning of amount has left the Company and made his deputies as signatories to the accused Company. From the materials collected, the offence of conspiracy, misappropriate have been unearthed and complaint filed against the accused persons for offence under Sections 120A, 409 IPC and Section 357 of Cr.P.C., seeking compensation r/w Section 626 of the Companies Act, recoverable under Section 431 of Cr.P.C. The trial Court, on the statements and materials produced, finding prima facie case made against the accused, taken the same on file and issued summons, against which the present petition has been filed. 6. Mr. P.Ramesh Kumar, the learned counsel appearing for the petitioners would submit that the respondent filed a complaint against the petitioners, who are the Directors of A1 Company, under Sections 628 and 629 of the Companies Act, along with Sections 477A and 409 r/w.120A of Indian Penal Code, on the allegations that the accused on 27.12.2010 falsified the acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .03.2012. The Ministry of Corporate Affairs, Government of India, after scrutinizing the investigation report, directed the Respondent/Complainant to launch prosecution by its order dated 18.01.2013, and further on 30.05.2013 against the Company, its Directors and Officers, for violation of the provisions under the Companies Act, 1956 Indian Penal Code, 1860, in exercise of powers conferred under Section 242 of the Companies Act, 1956. In this case, some delay in grant of sanction, which is excluded as per Section 470 Cr.P.C. Further, the petitioners are prosecuted along with offence under IPC of severe punishment, further the offence under the Companies Act are continuing offence under Section 472 Cr.P.C. In view of the same, Section 468 Cr.P.C., is not a bar. 9. On the basis of investigation carried out by the Inspectors of SFIO, it was revealed that the Company misrepresented and falsified the books of accounts through manipulation of sales, commission figures, manipulated statements and usage of data by falsifying balance sheet figures of Gold Quest International Pvt Ltd Questnet Enterprises India Pvt Ltd., tendering false evidence. The total amount involved which remain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sec.482 can be exercised only when no other remedy is available to the litigant and not in a situation where a specific remedy is provided by the Statute. Summons should not be interfered lightly in a petition under Sec 482 of Criminal Procedure Code, 1973. The present petition is filed by the Petitioners is a delaying tactics, to protract the proceedings and delay the trial by knowing fully well about the case that is pending before the trial Court and willfully wantonly neglected to appear before the learned V Metropolitan Magistrate Court at Egmore. Chennai. 11. The learned Central Government Standing Counsel, in support of his contentions, relied on the Judgment of the Apex Court in Padal Venkata Rama Reddy @ Ramu Vs. Kovvuri Satyanarayana Reddy and Ors reported in (JT 2011 (8) SC 646), for the proposition that the inherent powers under Section 482 can be exercised only when no other remedy is available to the litigant and not in a situation where a specific remedy is provided by the statute. The inherent powers can be exercised to quash the proceedings only in a case when the complaint does not disclose any offence or is frivolous, vexatious or oppressive. Further rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Mr.Nitin Panchamatia and (iii) Mr.N.S.Narayanan. 14. The primary contention of the respondent is that the accused falsified the accounts of A1 Company for the financial year 2001 2002 to 2007 2008 and submitted the same on 20.05.2011. The falsification is alleged to have been done on 27.12.2010 and submitted on 20.05.2011. On the other hand, contention of the petitioners is that the petitioners resigned the Directorship of the Companies much prior to the above said date and necessary Form-32 filed before the Registrar of Companies to that effect. When the petitioners were not Directors of the company at the relevant period, the prosecution against them need not be continued. In this case, the question to be decided is whether the Petitioners / Directors of the Companies during the relevant period, false statements made wilfully knowing them to be false. 15. On perusal of the records, it is seen that the falsification is alleged to have been done on 27.12.2010 and the same was submitted on 20.05.2011. In the complaint, date of resignation of the respective petitioners, and cessation of being directors given, which is not disputed by the complainant, which would clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimants, who intend to proceed along with the criminal complaints. The amount of these 141 claimants were deposited and their interest was safeguarded. Thereafter, considering the entirety of the case, following the guidelines of the Apex Court, this Court in Crl.O.P.No.30144 of 2019 and Crl.O.P.No.24461 of 2016 by order, dated 02.01.2020, quashed the case against the Goldquest in C.C.No. 3876 of 2009 in entirety. Thus, the purpose of filing of criminal complaint for offence under Sections 120A and 409, is unwarranted, nothing but a harassment. 17. In the case before the Economic Offence Court, the case primarily proceeds against the petitioners for submission of written certificate, balance sheet, prospectus and other documents of the Goldquest Company with false particulars and thereby, committing offence under Sections 628 and 629 of the Companies Act along with other IPC offences. As far as case in E.O.C.C.No.47 of 2014, there are totally 14 accused and the complaint has been filed by the respondent for violation of Sections 628 and 629 of the Companies Act along with that complaint also for offence under Sections 477A, 409 and 120A of IPC., for falsification of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ata submitted is quite contrary to the documents earlier submitted. From the balance sheet as on 31.03.2002, it is seen that Pushpam Appalanaidu (A1) and Mahendran S Rajadurai(A9) have signed and submitted the documents. From the balance sheet as on 31.03.2004, it is seen that Pushpam Appalanaidu(A1) and Deepak Korla(A8) have signed and submitted the documents. From the balance sheet as on 31.03.2005, it is seen that Pushpam Appalanaidu (A1) and Joseph Augustine(A12) have signed and submitted the documents; From the balance sheet as on 31.03.2006, it is seen that Pushpam Appalanaidu (A1) and Joseph Augustine(A12) have signed and submitted the documents; From the balance sheet as on 31.03.2007, it is seen that Pushpam Appalanaidu (A1) and Pushpendra Kumar Shukla (A10) have signed and submitted the documents; From the balance sheet as on 31.03.2008, it is seen that Pushpam Appalanaidu (A1) and Mahendran S Rajadurai (A9) have signed and submitted the documents. These documents have been prepared by G.Narayanasamy Chartered Accountants, S.Venkatram Co., who is no more. The Directors though claimed that they have resigned from the Company, admitted by the respondent, hence, case again ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
