J U D G M E N T

This Criminal Appeal has been filed to set aside the order dated

23.09.2014 made in Crl.M.P.No.1494 of 2014 on the file of the Special Court under TNPID Act, Chennai.

2.For the sake of convenience, the parties will be referred to by their name.

3.The Oriental Benefit and Deposit Society Limited (“the Oriental” for brevity), with its registered office at No.108, Audiappan Naicken Street, Chennai – 600 079, was a Non-Banking Finance Company. It was accepting deposits from the public and was also giving loans. One Soorya Rao obtained a loan of Rs.2,95,000/- on 11.08.1999 from the Oriental, vide Loan Account No.115/32, after mortgaging his property, vide mortgage deed dated

30.07.1999, bearing document No.807 of 1999, on the file of the Sub- Registrar's Office, Sowcarpet. The original title deeds of his property at No.36, Thotha Muthiappan Street, Chennai – 600 001, were deposited with the Oriental. Soorya Rao was making payments from time to time to the Oriental. While that being so, the Oriental failed to repay monies to their depositors and therefore, on the complaint lodged by one C.Janarthanan, the Economic Offences Wing-II (“EOW-II” for brevity), Chennai, registered a case in Crime No.12 of 2005 under Section 5 of the Tamil Nadu Protection of Interest of Depositors Act, 1997 (“TNPID Act” for brevity) on 14.02.2005 against the Oriental and its Directors G.H.Krishnakumar, Kannan, and K.M.Gopakumar.

4.During the course of investigation, the Inspector of Police, EOW-II, collected all the title documents that were available with the Oriental relating to those who had taken mortgage loan, including the title deeds of Soorya Rao, and produced the same before the Special Court under TNPID Act, Chennai, on 02.03.2005. The Special Court received the documents, but returned the same to the Inspector of Police, EOW-II, for safe custody. Accordingly, the Inspector of Police, kept all the documents, including the documents of Soorya Rao, in the safe custody of the office of the EOW-II, at SIDCO, Old Corporate Building, Thiru.Vi.Ka.Industrial Estate, Guindy, Chennai – 600 032.

5.In the first week of December, 2015, Chennai City was affected by huge floods and several places in the city got submerged. It was even declared as a national calamity. In that deluge, the office of the EOW-II also suffered extensively and they lost several files and documents which included the title deeds of Soorya Rao. In connection with the loss, the EOW-II lodged a complaint with J-3 Guindy Police Station and a case in Crime No.3761 of 2015 entitled “unprecedented flood and natural calamity” was registered.

6.Soorya Rao came forward to pay the amount on the mortgage loan availed by him and it was quantified at Rs.3,24,979.35 by the Directors of the Oriental based on the available records. Whereas, the Investigating Officer quantified it at Rs.4,99,968/-. Soorya Rao filed Crl.M.P.No.1494 of 2014 in Crime No.12 of 2005 before the Special Court under TNPID Act, Chennai, for return of his title deeds and expressed his willingness to deposit Rs.3,24,979.35. On notice, the Investigating Officer took a stand that the amount that is required to be deposited by Soorya Rao is Rs.4,99,968/-.

7.After hearing either side, the Special Court, by order dated

23.09.2014, in Crl.M.P.No.1494 of 2014, directed Soorya Rao to deposit Rs.4,99,968/- with the District Revenue Officer, Chennai, before 07.10.2014 and also ordered that, on such deposit, Soorya Rao would be entitled to have the mortgage deed cancelled.

8.Not satisfied with the order, Soorya Rao filed the present appeal before this Court under Section 11 of the TNPID Act.

9.During the pendency of this appeal, Soorya Rao died on

22.01.2015 and this Court, has permitted his legal heirs to step into his shoes, by order dated 29.01.2020 in Crl.M.P.No.1634 of 2016 in Crl.A.No.121 of 2015.

10.Heard Mr.P.Chandrasekaran, learned counsel for the appellants, Mrs.P.Kritika Kamal, learned Government Advocate (Crl. Side) and Mr.D.Su