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2000 Supreme(AP) 359

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD
Vaman Rao J.
Mr. M. Kishan Rao and others
Versus
Mrs. P. Santha Reddy and another
Criminal Petition No. 457 of 2000
Decided on : 7-6-2000.

Advocates:
Advocate Appeared:
Mr. B. Adinarayana Rao, Advocate for the Petitioners.
Mr. C. Padmanabha Reddy, for Mr. C. Praveen Kumar, Advocate for the Respondent.
Mr. S. Ravi, Advocate for Respondent No.1.
Public Prosecutor for Respondent No.2.

Headnote:

Code of Criminal Procedure, 1973 - Section 482 - Indian Penal Code, 1860 - Section 409 and 411 - Companies Act - Sections 299, 300 and 629-A - Service - Petition under Section 482 of Cr.P.C. seeks quashing of the order passed by Special Judge for Economic Offences under which the learned Judge directed the issue of search warrant for searching the premises of registered office of accused No.4 - Mis. Spectrum Power Generation Limited for seizing the documents mentioned in the petition - Held, Under the interim orders, the respondents were directed to produce the relevant records into this Court - In fact, that order has been complied with and the relevant records which were sought to be collected by the impugned search operation have been produced before the Court and are lying in the custody of the Registrar of this Court - Under the circumstances, the question of execution of the search warrant issued by the learned Special Judge which has been stayed under the interim orders of this Court does not arise - It is directed that the records produced in pursuance of the interim orders which are now lying in the custody of the Registrar shall be transmitted under a sealed packet to the Court of Special Judge for Economic Offences, and the learned Special Judge shall retain the documents as part of the record in the case and it shall be open to the parties to seek the use of these documents in such manner as is permissible under law during the trial of the case - Petition closed. (Paras 36, 37)

ORDER

This petition under Section 482 of Cr.P.C. seeks quashing of the order dated 28-01-2000 passed by Special Judge for Economic Offences in Crl.M.P. No. 139 of 2000 in C.C.No.3 of 2000 under which the learned Judge directed the issue of search warrant for searching the premises of registered office of accused No.4 - Mis. Spectrum Power Generation Limited for seizing the documents mentioned in the petition. The respondent No.1 herein is the complainant in the said CC, which was taken 6n file by learned Special Judge for the offences under Section 409 of IPC and Sections 299, 300 and 629-A of the Companies Act.

2. The parties shall be referred to as arrayed in the complaint.

3. The complainant in support of his (her) petition for issuance of search warrant has filed his (her) affidavit. It is stated that the complainant filed a complaint against A-I to A-4 for the offences under Sections 409 and 411 of IPC and also for the offences of contravention of Sections 297, 299 and 300 of the Companies Act and the same was taken cognizance and summons were issued to the accused. It is stated in the affidavit that in order to prove the said offence for contravention of offences under Sections 299 and 300 of the Companies Act, it is necessary to show that there was no resolution as required under the Companies Act 1956, which constitute an offence. For this purpose, the minutes book of Accused No.4 company for the period November, 1992 to December, 1996 are necessary. Similarly, it is stated that the cash book of A-4 company for the period November, 1992 to March, 1996 along with the correspondence, vouchers and bank statements were also necessary to prove the offences under Sections 409 and 411 of IPC. It is stated that cash book of M/s. Kris Engineers together with correspondence, vouchers and bank statements are also necessary to prove the offence against the accused in the above case. It is stated that these documents are in the custody of the accused and they may not produce the same without altering or tampering with the said documents even if summons are issued to produce the same. It is stated that general search warrant is necessary to search the premises of the registered office of A-4 company situated at the address given in the affidavit. It is stated that in the same premises, office of M/ s. Kris Engineers, registered partnership firm was also located.

4. On these allegations, the search warrant has been issued by the learned Special Judge for causing production of minutes book of Spectrum Power Generation Limited from 1992 to till to date.

5. Before taking up the contentions on either side, it may be briefly mentioned as to the nature of the complaint in which the search warrant has been ordered.

6. Respondent No.1 herein is the complainant, who is a shareholder of the accused No.4 company and petitioners 1 to.4 herein are accused Nos. 1 to 4 respectively. The sum and substance of the complaint is that A-1 to A-3 are the Directors of Accused No.4 Company and they entered into a sham contract with M/s. Kris Engineers, a partnership firm of which A-2 and A-3 are the only partners and that the alleged contract with M/s. Kris Engineers was entered into in violation of various provisions of the Companies Act punishable under the relative provision and Section 629-A of the Companies Act and this Contract itself was a mere device for transferring the funds of accused No.4 Company to M/s. Kris Engineers of which A-2 and A-3 are the partners who in turn have transferred the said amount to the account of accused N 0.1. Thus, the allegation is that various provisions of the Companies Act have been contravened which constitute offences and that a sum of Rs. 50 lakhs has been misappropriated by the accused. It may be stated that the search warrant was issued ex parte before appearance of the accused in the case. This order issuing the search warrant is challenged on various grounds.

7. It is firstly stated that the first accused being the co












































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