ORDER

Per: Justice Vivek Rusia

1. Appellant has filed this appeal under section 11 of the Madhya Pradesh Nikshepakon Ke Hiton Ka Sanrakshan Adhiniyam, 2000, against the order dt.5.9.2011 (Annexure A/1) passed by the District Judge, Bhind, in MCC No.30/2011, whereby order of interim attachment dt.30.7.2011 has been made absolute.

2. Facts of the case, in short, are as follows:

(i) The appellant is a company registered under the Companies Act, 1956, on September 24, 2008, after issuance of certificate of incorporation by Registrar of Companies, Delhi and Haryana. After the change of name of the company, a fresh certificate dated May 26, 2010 was issued. The company is engaged in the business of real estate development, infrastructure development, real estate promotion, engineering work, etc. Apart from doing the aforesaid work, under the Memorandum of Association and Article of Association, the Board of Directors of the Company approved the proposal to raise funds by launching the fixed deposit schemes under section 58A of the Companies Act. The company issued an advertisement in the English and local newspapers inviting investors to deposit the money in the form of fixed deposit. The company also decided to raise money by issuing 10,00,000 fully secured redeemable non-convertible debentures of Rs. 1000 each. The appellant has declared that it is neither a non-banking Banking Financial Company nor a Chit Fund Company as prescribed under the RBI Act.

(ii) The State of Madhya Pradesh in order to protect the deposits made by the public in the Financial Establishment and matters connected therewith came up with the law in the name of Madhya Pradesh Nikshepakon Ke Hiton Ka Sanrakshan Adhiniyam, 2000 (herinafter shall be referred to as the Adhiniyam 2000).

(iii) Section 2 (a) of the Adhiniyam 2000 defines the 'Competent Authority' means the authority appointed under Section 5 which shall not be below the rank of Collector of the concerned District. Section 2(b) defines the "Deposit", which includes receipt of money or acceptance of any valuable commodity by any financial establishment to be returned after a specified period or otherwise, either in cash or any kind. Section 2 (c) defines "Financial establishment", which means an individual, an association of individuals or a firm or a company receiving deposits under any scheme or arrangement but does not include a Corporation or a Co-operative Society owned or controlled by the State Government or the Central Government, or a Banking Company as defined under clause (c) of section 5 of the Banking Regulation Act, 1949. Section 3 mandates every financial establishment to intimate the Competent Authority about its business in the area. The financial establishment shall file a copy of each of such periodical statement to the Competent Authority. The Competent Authority at his discretion may also direct time to time any financial establishment to furnish statements, information or particulars etc. about the deposits received by the establishment. The violation of the aforesaid provision attracts the imprisonment which may extend to three months or fine up to the one thousand rupees or with both. Section 4 provides attachment of properties on default of return of deposits. As per sub clause (i) upon complaints received from depositors or otherwise, the Competent Authority is satisfied that any financial establishment defaults the return of deposits in cash or kind, as promised after maturity and as per clause sub clause (ii) where the Competent Authority has reason to believe that any financial establishment is acting in a calculated manner with an intention to defraud the depositors. Therefore, under Section 4, the Competent Authority may act either upon a complaint received from depositors or suo motu if he has reason to believe that any financial establishment is having an intention to defraud the depositors. Upon its satisfaction, the Competent Authority may in order to protect the interests