Quashing valid for mechanical cognizance without application of mind, delay, settlements, and non-joinder of company against aged directors.

ORDER :

1. Both the petitions have been filed to quash proceedings in C.C.No.200 of 2022 on the file of the learned Chief Metropolitan Magistrate, Egmore, thereby taken cognizance for the offences punishable under Sections 406, 418, 420 to 423 of IPC r/w. 120(b) of IPC, as against the petitioners.

2. The petitioners in Crl.O.P.No.20685 of 2022 are arrayed as 4^th and 12^th accused and the petitioner in Crl.O.P.No.20688 of 2022 is arrayed as 11^th accused. The case of the prosecution is that based on the report submitted by the second respondent herein, the first respondent registered the FIR in Crime No.1183 of 1999, for the offences punishable under Sections 120B, 406, 409, 418, 420 to 423 of IPC as against 16 persons, alleging that the company called RPS Benefit Fund had advertised through print media thereby inviting deposit of money by general public and assured high returns of 18% to 21% on maturity. Based on the said representation, sixteen thousand depositors made their respective deposit to the total sum of Rs.42.74 crores. The deposited money was granted as loan to 66 depositors. Out of the total disbursed loan amount, a sum of Rs.19.14 crores were routed to M/s. Lakshmi Trace Credit Limited and M/w. Ajith Diary Industries Limited in violation of Nidhi Rules.

3. Further alleged that the deposited money was routed by the benami of the Directors of the company and the same were utilized for purchasing immovable property. The borrower failed to repay the amount and the company had returned the security issued by the borrowers. Further there was no records available with the company pertaining to the securities obtained for the sanction of loan. The value of immovable properties, which were settled as full and settlement of the loan were inflated with aid of an approved valuer. On such report, the first respondent registered the FIR in Crime No.1183 of 1999 for the offences punishable under Sections 120B, 406, 409, 418, 420 to 423 of IPC. After completion of investigation, the first respondent filed final report and the same has been taken cognizance in C.C.No.200 of 2022. The charge sheet has been laid as against 21 persons including the deceased persons. The Trial Court had taken cognizance as against all the accused persons. To quash the said proceedings, the petitioner filed the present petitions.

4. The learned Senior Counsel appearing for the petitioner submits that the 11^th accused is aged about 90 years and she is bed ridden. The 12^th accused is died and he also produced her death certificate before this Court. He further submitted that the Trial Court, without application of mind, had mechanically taken cognizance as against all the accused persons. The persons who already died were also added as accused. He also submitted that the FIR was registered in the year 1999. But the first respondent filed final report only in the year 2022 for which, there is absolutely no explanation on the side of the prosecution. The quantum of deposit involved is Rs.42.74 crores and the said amount is very much available with the second respondent herein to settle the depositors. Even according to the case of the prosecution, the company only issued advertisement to the general public thereby canvasing them to deposit their money. But the first respondent did not implicate the company as an accused. Therefore, the very initiation of the criminal proceedings by way of complaint cannot be maintainable since no case is registered as against the company. As per the report submitted by the second respondent, a sum of Rs. 3,34,61,064/- is very much available. So far, the depositors were settled to the tune of 65% of the admitted amount. Now no witnesses claiming for their deposits before the trial Court. All the statements recorded from the witnesses are of the same verbatim and are identical and do not inspire confidence of the Court. Therefore, th