Continuation of criminal proceedings after settlement of claims is unjust and leads to miscarriage of justice, warranting quashing of charges.

The Court made the following Common Order:

In all these Criminal Petitions, the common prayer is that to quash the C.C.Nos.1 & 2 of 2008 on the file of Metropolitan Sessions Judge-cum- Special Court for Protection of Andhra Pradesh Depositors of Financial Establishments Act, 1999, Visakhapatnam and J.C.C.Nos.204 and 107 of 2008 on the file of Juvenile Justice Board, Visakhapatnam.

2. The learned Senior Counsel Sri S.S.Prasad appearing for the petitioners submits that the Cr.Nos.21 of 2005, 355 and 356 of 2005 were registered by the V Town Police Station, Visakhapatnam under Sections 406, 420, 120B IPC and under Section 5 of Depositors Act, R/w Section 56 of the Chit Funds Act, 1971. After completion of the investigation, the charge sheets were filed before the Court of Metropolitan Sessions Judge and Special Judge to try the cases under A.P.Protection of Depositors and Financial Establishments Act, 1999, Visakhapatnam and before the Juvenile Justice Board, Visakhapatnam. The cases were registered as C.C.Nos.1 & 2 of 2005 on the file of Metropolitan Sessions Judge and Special Judge to try the cases under A.P.Protection of Depositors and Financial Establishments Act, 1999, Visakhapatnam and J.C.C.Nos.107 & 204 of 2008 on the file of Juvenile Justice Board, Visakhapatnam.

(a) As per the charge sheets, the total amount that was received by the petitioners mostly on the basis of promissory notes was Rs.26,97,58,185/-. The total number of persons paid the money as per the charge sheet are 946. The competent authority under the Depositors Act representing the prosecution, depositors and the petitioners herein arrived at settlement under which the individual persons who paid the money to the petitioners should be paid off with interest accrued up to 2005 when the crimes were registered towards full and final settlement of all their claims against the petitioners.

(b) Pursuant to the aforesaid settlement, the competent authority filed Crl.M.P.No.2257 of 2006 and 2258 of 2016 in C.C.Nos.1 & 2 of 2005 and the Special Court appointed a retired District Judge as Commissioner to act on behalf of the Court for the purpose of verifying the claims of the individuals and to their entitlement and to prepare a list of such eligible persons who are entitled for repayment vide order dated 02.08.2016. The learned Commissioner verified all the claims and submitted a report dated 17.04.2017 inter alia stating that there were around 2657 persons who are claiming the money. The said report was accepted by the Special Court by order dated 17.04.2017. The competent authority pursuant to the said settlement, filed another application in Crl.M.P.No.1234 of 2016 under Section 6(4) of the Depositors Act. The Special Court by order dated 17.04.2017 allowed the said application and directed the learned Commissioner to disburse the amounts to the legitimate claimants as per the above said report submitted by the Commissioner. Accordingly, all the claimants received their money due in full and final settlement of all their claims against the petitioners, submitted duly verified affidavits to that effect and surrendered their documents like promissory notes on the basis of which they made their claims.

(c) As per the above said orders of the Special Court dated 17.04.2017, the Commissioner settled the claims and paid to the 2531 claimants in full and final settlement of all their claims. However, he further stated that about 132 persons could not be paid for various reasons like non- availability of the person, or formalities not complied with or loss of their promissory notes or shifted their addresses or whereabouts are not known. The amounts due Rs.1,25,56,636/- was deposited with the competent authority in the S.B.I.

(d) For the above said developments in the above said cases that are pending before the Special Court under the above said enactment, the further continuation of the proceedings against the petitioners would be a futile exercise and it would lead to th