Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2021 Supreme(Mad) 706

IN THE HIGH COURT OF JUDICATURE AT MADRAS
T.V. THAMILSELVI, J.
M/s. Susi Emu Farms India Pvt. Ltd., Rep. by its Managing Director, M.S. Guru @ Gurusamy, Erode - Appellant
Versus
The State of Tamil Nadu, Rep. by The Principal Secretary to Government, Chennai & Another - Respondent
C.M.A. No. 2708 of 2014 & M.P. No. 1 & 2 of 2014
Decided On : 08-03-2021

Advocates Appeared:
For the Appellant :Kumara Devan, Advocate.
For the Respondents:A. Devenarendran, Government Advocate (CS).

The court upheld the attachment of properties to safeguard the interests of depositors and emphasized the need for early disposal of the main case.

Headnote:
TANPID - Defaulted Farm's Appeal against Attachment Order - Section 11 of TANPID Act - 4(3), 7(6) of Tamil Nadu Protection of Interest of Depositors (in Finance Establishments) Act 1997 - The appellant company cheated depositors, leading to criminal cases and attachment of properties. The court upheld the attachment order to safeguard depositors' interests and directed early disposal of the main case.
Fact of the Case:

The appellant company cheated depositors by failing to repay deposits collected under false promises. Criminal cases were filed, and properties were attached to safeguard depositors' interests.
Finding of the Court:

The court found that the attachment of the appellant company's properties was valid and necessary to safeguard the depositors' interests. The court directed the early disposal of the main case.
Issues: The main issue was whether the attachment order passed by the TANPID Court in O.A.No.13 of 2013 was sustainable.
Ratio Decidendi: The court upheld the attachment order to protect the interests of the depositors and directed the early disposal of the main case.
Final Decision: The appeal was dismissed as devoid of merits, and the court directed the early disposal of the main case without giving adjournments.

JUDGMENT :

Prayer: Civil Miscellaneous Appeal (CMA) is filed under Section 11 of the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act (TANPID), against order dated 11.10.2013 made in O.A.No.13 of 2013 on the file of the Special Court for TANPID Act Cases, Coimbatore.

1. On previous hearing i.e., 23.02.2021, when the matter was called, the learned counsel for the appellant submitted that the appellant was absconded but this Court called for the particulars about the stage of the case pending in O.A.No.13 of 2013 on the file of the Special Court under TANPID Act, Coimbatore. Accordingly, 6 cases are pending against the appellant/accused and he was lastly appeared on 22.01.2001 and all the cases are still pending, but the trial not concluded.

2. Heard on both sides.

3. On a perusal of the records, it reveals that the appellant preferred the CMA against the order dated 11.10.2013, passed by the learned Special Judge under TNPID Act, Coimbatore in O.A.No.13 of 2013, which was filed by him to raise the order of attachment made in G.O.Ms.No.711, dated 21.09.2012 relating to 7445 birds and immovable properties.

4. The learned Government Advocate (CS) for the respondents submitted that O.A.No.13 of 2013 was filed by the appellant/ petitioner to raise the order of attachment made in G.O.Ms.No.711, Home (Police XIX) Department, dated 21.09.2012 relating to 7445 birds and immovable properties as mentioned in the Schedule II of the Properties in O.A.No.13 of 2013, filed by the appellant. The appellant is a Private Company managed by its Managing Partner is M.S. Guru @ Gurusamy. The appellant company was started to promote and propagate the Emu farms in the State of Tamil Nadu. The Emu bird is a bird of Australian Origin and the appellant Company made a propagation that Emu bird can survive in any type of climate and Emu farm is a more profitable business and they also gave attractive promise to the public. Besides, they entered into agreement with persons offered deposit Rs.1.5 lakhs and to get Emu Chicks, and other ancillaries and started to collect Rs.1.5 lakhs from each depositors, collected more than Crores of rupees.

5. But, as agreed the appellant farm failed to repay the deposit. So, the Police received about more than 3000 complaints from 13000 investors, and came to know about the innocent farmers who were cheated by giving false promise by the appellant Company. So many cases were registered against them. The competent authority was given power to attach the properties of the appellant Company by G.O.Ms.No.711, Home (Police XIX) Department, dated 21.09.2012. A case in Crime No.2/2012 under Sections 406,420 IPC and 5 of the TANPID Act was registered on 09.08.2012. The appellant Company and its partners were arrested and remanded. During the course of investigation, it has been revealed that they have collected deposits amount in a tune of Rs.97,48,12,520/- from 3767 depositors in two schemes and defaulted to repay the amount(s) as they promised. So, the competent authority filed O.A.No.26 of 2012 and O.A.No.12 of 2013 before the TANPID Court, for attachment of movable and immovable properties of the defaulted farm (appellant company) and its partners.

6. Accordingly, O.A.No.12 of 2013 was filed by Competent Authority, District Revenue Officer, Erode District, Erode praying to grant absolute attachment order by the Special Court, under Section 4(3) of Tamil Nadu Protection of Interest of Depositors (in Finance Establishments) Act 1997 and also permit the petitioner to sell the 12 vehicles (approximate value Rs.34,30,000/-) and frozen amount rs.21,96,409.18 may be credited in the name of Competent Authority and District Revenue Officer, Erode District in the Savings Bank A/o.No.101501000010744 in the Indian Overseas Bank, Surampettai Branch at Erode under Section 7(6) of Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act 1997.

7. The appellant Company filed O.A.No.3 of 2013 p

Click Here to Read the rest of this document