Back
2022 Supreme(Online)(Kar) 60994
- 1 -
CRL.P No. 6977 of 2020
C/W Connected matters
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 2ND DAY OF AUGUST, 2022
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA
CRIMINAL PETITION NO. 6977 OF 2020
C/W
CRIMINAL PETITION NO. 6928 OF 2020
CRIMINAL PETITION NO. 6975 OF 2020
CRIMINAL PETITION NO. 6976 OF 2020
IN CRIMINAL PETITION NO. 6977 OF 2020
BETWEEN:
1.
INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED,
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 1956
AND HAVING ITS REGISTERED OFFICE
NO.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURUB - 560 038
REPTD. BY ITS AUTHORIZED SIGNATORIES
MR. CHANDRASEKHARA BABU AND
MR. RAVI KUMAR P.K.
2.
SRI. CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
PRIVATE LIMITED,
NO.258, P.B.NO.3803
Digitally signed by
PADMAVATHI B K
Location: HIGH
COURT OF
KARNATAKA
- 2 -
CRL.P No. 6977 of 2020
C/W Connected matters
6TH CROSS, I STAGE
INDIRANAGARA, BENGALURU - 560 038
3.
SRI. RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
PRIVATE LIMITED
NO.258 P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU 3 560 038
&PETITIONERS
(BY SRI. UNNIKRISHNAN M., ADVOCATE)
AND:
CHANDRAKUMAR C.,
S/O SRI. P. CHELLAPPAN
AGED ABOUT 53 YEARS
RESIDENT OF NO.1
CHELLAPPANA BUILDING
N.R. COLONY, HAL POST
BENGALURU - 560 017
ALSO PRESENTLY RESIDING AT
NO.01 SUPRITH VILLA
9TH CROSS, DODDANEKKUNDI
CHANNAPPANAHALLI
BENGALURU - 560 037
&RESPONDENT
(BY SRI. DILIP KUMAR, ADVOCATE)
- 3 -
CRL.P No. 6977 of 2020
C/W Connected matters
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
CR.P.C
PRAYING
TO
QUASH
ALL
PROCEEDINGS
IN
C.C.NO.57174/2019
PENDING
BEFORE
THE
XXXIV
ADDL.C.M.M., BENGALURU, AS AGAINST THESE PETITIONERS
ETC.
IN CRIMINAL PETITION NO. 6928 OF 2020
BETWEEN:
1.
INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED,
A COMPANY REGISTERED
UNDER THE COMPANIES ACT, 1956
AND HAVING ITS REGISTERED OFFICE
NO.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU - 560 038
REPTD. BY ITS AUTHORIZED SIGNATORIES
MR. CHANDRASEKHARA BABU AND
MR. RAVI KUMAR P.K.
2.
SRI. CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
PRIVATE LIMITED,
NO.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU - 560 038
3.
SRI. RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
- 4 -
CRL.P No. 6977 of 2020
C/W Connected matters
PRIVATE LIMITED,
NO.258 P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU 3 560 038
&PETITIONERS
(BY SRI. UNNIKRISHNAN M., ADVOCATE)
AND:
CHANDRAKUMAR C.,
S/O SRI. P. CHELLAPPAN
AGED ABOUT 53 YEARS
RESIDENT OF NO.1
CHELLAPPANA BUILDING
N.R. COLONY, HAL POST
BENGALURU - 560 017
ALSO PRESENTLY RESIDING AT
NO.01 SUPRITH VILLA
9TH CROSS, DODDANEKKUNDI
CHANNAPPANAHALLI
BENGALURU - 560 037
&RESPONDENT
(BY SRI. DILIP KUMAR, ADVOCATE)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
CR.P.C
PRAYING
TO
QUASH
ALL
PROCEEDINGS
IN
C.C.NO.57173/2019
PENDING
BEFORE
THE
XXXIV
ADDL.C.M.M., BENGALURU AS AGAINST THESE PETITIONERS
ETC.
- 5 -
CRL.P No. 6977 of 2020
C/W Connected matters
IN CRIMINAL PETITION NO. 6975 OF 2020
BETWEEN:
1.
INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED,
A COMPANY REGISTERED UNDER
THE COMPANIES ACT 1956
AND HAVING ITS REGISTERED OFFICE
NO.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU - 560 038
REPTD. BY ITS AUTHORIZED SIGNATORIES
MR. CHANDRASEKHARA BABU AND
MR. RAVI KUMAR P.K.
2.
SRI. CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
PRIVATE LIMITED,
NO.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU - 560 038
3.
SRI. RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
PRIVATE LIMITED,
NO.258 P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
- 6 -
CRL.P No. 6977 of 2020
C/W Connected matters
BENGALURU 3 560 038
&PETITIONERS
(BY SRI. UNNIKRISHNAN M., ADVOCATE)
AND:
CHANDRAKUMAR C.,
S/O SRI. P. CHELLAPPAN
AGED ABOUT 53 YEARS
RESIDENT OF NO.1
CHELLAPPANA BUILDING
N.R. COLONY, HAL POST
BENGALURU - 560 017
ALSO PRESENTLY RESIDING AT
NO.01 SUPRITH VILLA
9TH CROSS, DODDANEKKUNDI
CHANNAPPANAHALLI
BENGALURU - 560 037
&RESPONDENT
(BY SRI. DILIP KUMAR, ADVOCATE)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
CR.P.C
PRAYING
TO
QUASH
ALL
PROCEEDINGS
IN
C.C.NO.57170/2019
PENDING
BEFORE
THE
XXXIV
ADDL.C.M.M., BENGALURU AS AGAINST THESE PETITIONERS
ETC.
IN CRIMINAL PETITION NO. 6976 OF 2020
BETWEEN:
1.
INDIRANAGAR CHIT FUNDS AND
TRADING COMPANY PRIVATE LIMITED,
- 7 -
CRL.P No. 6977 of 2020
C/W Connected matters
A COMPANY REGISTERED
UNDER THE COMPANIES ACT
1956 AND HAVING ITS
REGISTERED OFFICE
NO.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU - 560 038
REPTD. BY ITS AUTHORIZED SIGNATORIES
MR. CHANDRASEKHARA BABU AND
MR. RAVI KUMAR P.K.
2.
SRI. CHANDRASEKHARA BABU
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
PRIVATE LIMITED,
NO.258, P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU - 560 038
3.
SRI. RAVI KUMAR P.K.
AUTHORIZED SIGNATORY OF
INDIRANAGARA CHIT FUNDS
AND TRADING COMPANY
PRIVATE LIMITED,
NO.258 P.B.NO.3803
6TH CROSS, I STAGE
INDIRANAGARA
BENGALURU 3 560 038
&PETITIONERS
(BY SRI. UNNIKRISHNAN M., ADVOCATE)
- 8 -
CRL.P No. 6977 of 2020
C/W Connected matters
AND:
CHANDRAKUMAR C.,
S/O SRI. P. CHELLAPPAN
AGED ABOUT 53 YEARS
RESIDENT OF NO.1
CHELLAPPANA BUILDING
N.R. COLONY, HAL POST
BENGALURU - 560 017
ALSO PRESENTLY RESIDING AT
NO.01 SUPRITH VILLA
9TH CROSS, DODDANEKKUNDI
CHANNAPPANAHALLI
BENGALURU - 560 037
&RESPONDENT
(BY SRI. DILIP KUMAR, ADVOCATE)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482
CR.P.C
PRAYING
TO
QUASH
ALL
PROCEEDINGS
IN
C.C.NO.57172/2019
PENDING
BEFORE
THE
XXXIV
ADDL.C.M.M., BENGALURU AS AGAINST THESE PETITIONERS
ETC.
THESE CRIMINAL PETITIONS, COMING ON FOR ORDERS,
THIS DAY, THE COURT MADE THE FOLLOWING:
The petitioners 3 Company, its directors and Authorised
Signatories thereof, are before this Court calling in question
proceedings instituted against them in C.C.Nos.57174/2019,
57173/2019, 57170/2019 and 57172/2019, pending before the
- 9 -
XXXIV Additional Chief Metropolitan Magistrate, Bengaluru, for
the offence punishable under Section 138 of the Negotiable
Instruments Act, 1881 (8the NI Act9 for short).
2. The petitioners in all these cases are common but the
complainants are different. The issues that arise in the petitions
are also common. Therefore, they are taken up together and
considered by this common order with the consent of parties.
3. The 1st petitioner is 8Indiranagar Chit Funds and
Trading Company Private Limited9 (8the Company9 for short)
and 2nd and 3rd petitioners are authorized signatories to the
instruments involved in the transaction. The respondents are
the complainants.
4. Brief facts that lead the petitioners to this Court in all
these petitions, as borne out from the respective pleadings, are
as follows:-
The 1st petitioner/company, a registered Chit Fund under
the provisions of the Companies Act, 1956 in the year 1976
- 10 -
claims to have had more than 5,000 satisfied customers.
Owing to the slump in the financial market, as is contended,
the transactions became difficult to be fulfilled by the
petitioners. The petitioners contend that instead of focusing on
recoveries, they started repaying the customers whose chits
had matured by borrowing heavily with huge rate of interest,
which resulted in financial pressure over the Company as
subscribers to chits did not bid for the chit for a long time and
the borrowing had to be done to disburse dividends to
customers.
5. Several proceedings come to be initiated on several
disputes being generated between the parties one of which is a
proceeding under Section 138 of the NI Act. Complaints come
to be registered by the complainants invoking Section 200 of
the Cr.P.C. for offences punishable under Sections 138 and 141
of the NI Act. The learned Magistrate takes cognizance of the
offences and issues summons to the petitioners and the
proceedings are pending in C.C.No.57174/2019, which are
different in all these cases as narrated in the respective
petitions.
- 11 -
6. Things standing thus, insolvency proceedings were also
initiated against the petitioners by invoking Section 9 of the
Insolvency and Bankruptcy Code, 2016 (8the Code9 for short)
seeking to initiate Corporate Insolvency Resolution Process
against the 1st petitioner/Company on the ground that it has
committed a default for a total amount of Rs.20,22,000/- as on
10-04-2017. The said proceeding is pending and a Resolution
Professional was appointed in terms of the Code and
moratorium was declared against the company. The period of
moratorium was also over and the Company was directed to be
liquidated and the liquidation process was in progress. It is at
that juncture, the petitioners have knocked the doors of this
Court in these petitions calling in question the pendency of
proceedings under NI Act, on the ground that once the matter
is seized by the National Company Law Tribunal, the
proceedings for the offences punishable under the NI Act could
not be continued.
- 12 -
7. Heard Sri M. Unnikrishnan, learned counsel appearing
for the petitioners and Sri Dilip Kumar, learned counsel
appearing for the respondents.
8. The learned counsel representing the petitioners would
vehemently contend that once moratorium is declared or
liquidation proceedings are in progress, no proceedings under
the NI Act can be permitted to be continued either against the
Company or against the office bearers of the Company as the
Company is facing a proceeding for insolvency and liquidation.
He would contend that the Apex Court in the case of
P.MOHANRAJ AND OTHERS v. SHAH BROTHERS ISPAT
PRIVATE LIMITED reported in (2021) 6 SCC 258, has
considered this issue and has absolved the companies against
