Ramanujan Sesharathnam v. The Director General Of

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 29.01.2016

CORAM:

THE HON'BLE MR.JUSTICE R.SUBBIAH Crl.O.P.No.242 of 2016 and Crl.M.P.No.113 of 2016 Ramanujan Sesharathnam ... Petitioner Vs.

The Director General of Central Excise Intelligence, Chennai Zonal Unit, Chennai.

R.R.No.28 of 2015 ... Respondent Prayer: Petition filed under Section 482 of Cr.P.C., praying to set aside the condition in Para No.10(iv) & (v) imposed in the bail order dated 15.10.2015 made in Crl.M.P.No.17126 of 2015 passed by the learned Principal Sessions Judge, Chennai. For Petitioner : Mr.V.Srikanth For Respondent : Mr.N.P.Kumar, Spl.PP (Customs) * * * * *

ORDER

This petition has been filed by the petitioner praying to set aside the conditions imposed on the petitioner in Para No.10 (iv) & (v) of the bail order dated 15.10.2015 in Crl.M.P.No.17126 of 2015 passed by the learned Principal Sessions Judge, Chennai.

2.The brief facts of the case are as follows:- 2-1.The petitioner herein was a Director of the company viz., Zylog Systems (India) Ltd., from 20.11.2014 and he was removed from the Directorship on 14.11.2015. Earlier, the said company was controlled and managed by its Chairman-cumChief Executive Officer Mr.Sudharshan Venkatraman till 19.11.2014 and he had committed various financial irregularities; he was removed in the Annual General Body

Meeting of the shareholders of the Company. After the removal of the said Mr.Sudharshan Venkatraman, the petitioner came to know about the outcome of the financial irregularities committed by him and he had taken all efforts to revive the company. But, unmindful of his efforts, the respondent-Police has registered the case in R.R.No.28 of 2015 alleging that M/s.Zylog Systems (India) Ltd., having service tax Registration No.AAACZ2529CST001 with Service Tax III, Commissionarate, Chennai is providing IT Software and Internet Communication Services, which are taxable services under the provisions of the Finance Act, 1994. The company has collected service charge from their clients for the period 2010-2011, but not credited the service tax in violation of Section 73(a) of the Finance Act.

According to the respondent, the company had collected and not paid the service tax liability of Rs.2,94,98,181/- upto March-2015. 2-2.The petitioner was arrested on 21.09.2015 and remanded to judicial custody. The petition filed a bail application before the learned Additional Chief Metropolitan Magistrate, (E.O.-II), F.A.C, Chennai, but the same was dismissed. Thereafter, the petitioner filed a petition in Crl.M.P.No.17126 of 2015 before the learned Principal Sessions Court, Chennai for bail. While granting bail to the petitioner, vide order dated 15.10.2015, the learned Principal Sessions Judge imposed the following conditions_ i)Bail is granted.

ii)Petitioner is ordered to be released on bail on his executing a bond for Rs.5,00,000/- (Rupees Five Lakhs Only) with two sureties each for a likesum to the satisfaction of Addl.Chief Metropolitan Magistrate, (E.O.II), F.A.C. Chennai. iii)The petitioner shall stay in Chennai and report before the respondent daily at 11 a.m, until further orders.

iv)The petitioner shall not leave India without prior permission of the Addl.Chief Metropolitan Magistrate (E.O.II), F.A.C., Chennai. v)It is open to the respondent to make a request to the passport authorities to impound the passport of the petitioner.

Subsequently, the condition No.(iii) in the above said conditions imposed on the petitioner was relaxed by order dated 06.11.2015 in Crl.M.P.No.18593 of 2015 by the learned Principal Sessions Judge, Chennai.

2-3.It is stated by the petitioner that he has been complying with the conditions imposed by the Court regularly and he is co-operating with the investigation. Further, the petitioner is facing serious family emergency calls from USA and he wants to attend to it urgently. The petitioner is a frequent traveller and he has always been travelling abroad and returning back to India on various requirements for the past over 15 years. He is the earning member of his family and he has been taking care of his family. He has two sons. His wife and two sons are living in New Jersey, USA. His first son Aravind is studying Second Year Engineering in Rutgers Engineering College, New Jersey. His second son Hari Prasad is completing his school studies this academic year and he has to be admitted in a College.

As per the local requirement in New Jersey, USA, the petitioner has to be physically present as parent for his second son Hari Prasad to join the college and as such, it is very necessary for him to travel to USA to visit his family. Hence, the petitioner has come forward with the present petition before this Court for the relief as stated supra. 3.The learned Special Public Prosecutor (Customs) appearing for the prosecution opposed to grant the relief sought for by the petitioner.

4.However, considering the facts and circumstances of the case and also taking into account the submissions made on either side, this Court is constrained to pass the following order_ i)the petitioner is directed to deposit a sum of Rs.10 lakhs before the Trial Court viz., Addl.Chief Metropolitan Magistrate (E.O.II), F.A.C., Chennai.

ii)the petitioner shall execute a bond for Rs.10,000/- (Rupees Ten Thousand Only) with one Government surety, to the satisfaction of the learned Addl.Chief Metropolitan Magistrate (E.O.II), F.A.C., Chennai.

iii)On deposit of money and executing bond as indicated above, the petitioner shall be permitted to go abroad for a period upto 30.04.2016. The petitioner shall return back to India on or before 01.05.2016. On his return to India, the petitioner shall surrender his Passport to the respondent, who in turn shall deposit the same with the Passport Authorities. Further, on his return to India, the petitioner is entitled to withdraw the deposited amount of Rs.10 lakhs.

With the above terms, this criminal original petition is ordered. Consequently, connected Miscellaneous Petition is closed.

ssv -s/d- Assistant Registrar(CS-VI) True Copy Sub-Assistant Registrar To

1. The Director General of Central Excise Intelligence, Chennai Zonal Unit, Chennai.

2. The Public Prosecutor, High Court, Madras. + 1 cc to Mr.V.Srikanth, Advocate SR 5673 vs(co) prk4/2 Crl.O.P.No.242 of 2016and Crl.M.P.No.113 of 2016