Surya Estate Finance, v. The State Rep. By

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 16.07.2018

CORAM

THE HON'BLE MR.JUSTICE P.N.PRAKASH Crl.O.P.No.7932 of 2017 & Crl.M.P. No.4110 of 2018 Surya Estate Finance represented by its Partner R. Rajarathnam No.12 Venkatesan Street T. Nagar Chennai 600 017 R.Rajarathnam Ramavelu Rajathi Mallika Latha S. Madan S. Ramesh M. Manimaran Petitioners Vs.

1 The State represented by the Inspector of Police Central Crime Branch Egmore,Chennai 600 008 (X C. No.1097 of 1996) 2 Surya Estate Group of Finance Mudaleettalargal Nala Sangam No.34, Burkit Road T. Nagar, Chennai 600 017 Respondents (R2 impleaded suo motu as per order dated 10.04.2018 passed in Crl.O.P. No.7932 of 2017 & Crl.M.P. No.4110 of 2018) Criminal Original Petition filed under Section 482 Cr.P.C., seeking to call for the records in C.C. No.6982 of 2016 pending

on the file of the Chief Metropolitan Magistrate, Egmore and quash the same.

For petitioners :

Ms. R. Anitha For R1 :

Mrs.P.Kritika Kamal Government Advocate (Crl. Side) For R2 :

Mr. S. Kasirajan

ORDER

This Criminal Original Petition has been preferred seeking to call for the records in C.C. No.6982 of 2016 pending on the file of the Chief Metropolitan Magistrate, Egmore and quash the same.

On the complaint lodged by a depositor who had invested money in Surya Estate Finance, the Central Crime Branch registered a case in Cr. No.1097 of 1996 and after the completion of investigation, the case now stands trial in C.C. No.6982 of 2016 (Old C.C. No.10475 of 2003) before the Chief Metropolitan Magistrate, Allikulam, Egmore, against 9 accused. The sum and substance of the allegations in the final report is that Surya Estate Finance has collected monies from various depositors and had failed to repay the same. The depositors formed an association in the name and style of "Surya Estate Group of Finance Mudaleettalargal Nala Sangam" (Surya Estate Group of Finance Investors' Welfare Association) and they have negotiated with the promoters of Surya Estate Finance for over a period of time to have the matter settled amicably.

A writ petition in W.P. No.6563 of 1999 was filed by Surya Estate Finance, wherein, they came forward to settle with all the depositors amicably. This Court had constituted a Committee manned by Rajarathinam (A1) representing Surya Estate Finance and Yathindran, representing Surya Estate Group of Finance Mudaleettalargal Nala Sangam, to settle with all the depositors. Accordingly, the Settlement Committee paid Rs.70,63,600 to 326 depositors and Rs.37,18,500 to 72 legal heirs of deceased depositors. However, the Settlement Committee was not able to identify the whereabouts of 273 depositors to whom a sum of Rs.51,02,219/- is payable.

Mrs. K. Rajalakshmi, Inspector of Police, E.O.W.II, Chennai, has filed a status report dated 18.06.2018, wherein, it has been stated as follows:

"4.

It is submitted that as per available records and received a list from the settlement

committee for verification and verified. As per the available records, it is observed that the total deposit amount partly refunded by the settlement committee to 326 depositors is a sum of Rs.70,63,600/-. The deposit amount paid by the settlement committee to 72 legal heirs of depositors is a sum of Rs.37,18,500/-. The total deposit amount to be paid by settlement committee directly to the depositors and to the legal heirs of depositors is a sum of Rs.51,02,219/- to balance 273 depositors." On the directions of this Court, a joint account has been opened in the name of R.Rajarathinam and R.Yathindran with Indian Bank, East R.A. Puram Branch, Chennai vide A/c No.884317433. A sum of Rs.

51,21,503/- is available in the said account covering the requirement of 273 depositors whose names figure in the list appended to the status report filed by the police. In view of these developments, no useful purpose will be served if the prosecution in C.C. No.6982 of 2016 proceeds. Accordingly, the proceedings in C.C. No.6982 of 2016 (Old C.C. No.10475 of 2003) before the Chief Metropolitan Magistrate Court, Allikulam, Egmore, is quashed and as a sequel, this Criminal Original Petition is allowed. The accused and R.Yathindran have given an undertaking that as and when the police trace the depositors mentioned in the annexure to the status report, the amount payable to them shall be disbursed on proper identification. The said undertaking is recorded.

Until then, they will not be permitted to withdraw any amount on their own from A/c No.884317433 held with Indian Bank, East R.A. Puram Branch, Chennai. Connected Crl.M.P. is closed.

The Manager Indian Bank East R.A. Puram Branch No.9, I Trust Link Street Mandavelipakkam Chennai The Public Prosecutor High Court, Madras +1cc to Ms. R. Anitha, Advocate, S.R.No.46940 +1cc to Mr. S. Kasirajan, Advocate, S.R.No.46519 +1cc to Mr. S. Kasirajan, Advocate, S.R.No.46519 (02.08.2018) Crl.O.P.No.7932 of 2017 SPD(CO) CS/25/07/18