IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
S. Senthil Kumar - Appellant
Versus
State, Rep.by Inspector of Police, Chennai - Respondent
Criminal Original Petition No. 1909 of 2022
Decided On : 11-03-2022
Anticipatory Bail - Criminal Breach of Trust and Cheating - Sections 406 & 420 of I.P.C. - Summary
Fact of the Case:
The petitioner seeks anticipatory bail for alleged offences under Sections 406 & 420 of I.P.C. related to breach of trust and cheating. The petitioner was accused of misappropriating Set Top Boxes and failing to return them to the complainant.
Finding of the Court:
The court found that the petitioner had withheld a significant number of Set Top Boxes and accessories, worth over Rs.5 crores, entrusted to him. The court dismissed the petition, stating that custodial interrogation was necessary to trace the missing Set Top Boxes.
Issues: The issues revolved around the alleged breach of trust, misappropriation, and failure to return the Set Top Boxes and accessories as per the terms of the agreement.
Ratio Decidendi: The court emphasized that the petitioner could not withhold the Set Top Boxes and accessories entrusted to him and continue to enjoy interim bail. Custodial interrogation was deemed necessary to trace the missing Set Top Boxes.
Final Decision: The Criminal Original Petition seeking anticipatory bail was dismissed by the court.
JUDGMENT
(Prayer: This Criminal Original Petition is filed under Section 438 of Cr.P.C., praying to grant anticipatory bail to the petitioner in the event of his arrest from the hands of the respondent police in Crime No.221 of 2021 on the file of the respondent.)
1. This Criminal Original Petition is filed by the petitioner, who apprehends arrest for the alleged offence under Section 406 and 420 of I.PC., in Crime No.221 of 2021, seeks anticipatory bail.
2. The case of the prosecution is that, the First Information Report in Crime No.221 of 2021 dated 08.12.2021 given by Manager Administration, M/s.Air Media Networks Private Limited alleging that they are carrying on Multi System Operator (MSO) business by providing Digital Cable TV Signals through Digital Addressable System (DAS) from Thiruchendur District. They provide Digital Cable TV Signals to the Distributors who in turn redistribute the signals to various Local Cable TV Operators (LCOs). They in turn redistribute the same to the ultimate subscribers through Setup Boxes (STB) provided by their Company.
3. On 15.07.2017, the defacto complainant and M.Senthil Kumar (the petitioner herein) Proprietor of M/s.Senthil Cable Network entered into a Memorandum of Understanding. The said Mr.Senthil Kumar was appointed as Distributor to provide Digital Cable TV Signals to the customers directly through Local Cable TV Operators (LCOs) in respect of specified areas in Thanjavur, Ariyalur and Pudhukottai District. The defacto complainant as Multi System Operator (MSO) agreed to provide the Set Top Boxes and transmit the Digital Cable TV Signals to M/s.Senthil Cable Network enabling them to distribute the TV signal to the subscribers through Local Cable TV Operators (LCOs).
4. Pursuant to the agreement, M/s.Senthil Cable Network acted and served as Distributors and remitted the Monthly subscription Fees, STB Activation, Installation Charges, Bandwidth Network Charges etc., for a certain period. For receiving signal at the customers end, Set-Top Boxes accessories, AV Card, Adopters and Remote Controls, HDMI Cable and other necessary and accessories were handed over to the distributor-M/s.Senthil Cable Network. There is a specific negative covenant in the memorandum of understanding that the petitioner should not enter into a similar agreement with the competitors or others in the area to which he was given Distributorship. In case of termination of the agreement, M/s.Senthil Cable Network has to settle the dues, charges, fees etc., within 15 days and return the assets of the defacto complainant.
5. Alleging that M/s.Senthil Cable Network owned by Senthil Kumar (the petitioner herein) in violation of the agreement to Distributorship, Local Cable TV Operation, Services etc., clandestinely joined hands with the competitors in violation of the terms of Memorandum of Understanding. Therefore, the distributorship was terminated but the petitioners has not returned the Set Top Boxes, accessories and also failed to account within 15 days as per the memorandum of understanding. Particularly, after closing the business and ceased to operate with the complainant/Company. He has joint with the competitor and misappropriate the accessories and Set Top Box which are properties entrusted to petitioner. Nearly 41573 numbers Set Top Box at the rate of Rs.1,400/- with held by the petitioner and the subscription collected from the end users were not remitted by the petitioner to the complainant. Around Rs.1,06,50,856/- is due from the petitioner under this head. The worth of the Set Top Box with held by the petitioner runs to Rs.5,82,02,200/-. Thus, the total sum of Rs.6,88,53,056/- is due and payable.
6. For breach of trust, for misappropriation and cheating, case under Sections 406 & 420 of I.P.C., registered against this petitioner and subjected to investigation.
7. In the course of investigation, search was conducted on the premise of M/s.V.K.Digital Private Limited at about 4500 Set Top boxes were seized fr
AI
The main legal point established is that custodial interrogation may be necessary in cases involving the withholding of entrusted property, and the accused cannot benefit from withholding such proper....
Ownership of equipment remains with the distributor operator; the local cable operator is obligated to return or compensate for set-top boxes.
The Petitioner's entitlement to recover outstanding dues and STBs is affirmed, emphasizing the Respondent's breach of the Interconnect Agreement.
Merely failing to fulfill a contract does not constitute criminal cheating unless intent to deceive is established.
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