IN THE HIGH COURT OF JUDICATURE AT MADRAS

Reserved on

Delivered on

05~01~2022

12~01~2022

Coram:

THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR

Crl.O.P.No.18951 of 2017

&

Crl.M.P.Nos.11502 & 11503 of 2017

1. Upendra Hosdrug Sundar Kamath

Managing Director,

Tamilnadu Mercantile Bank Limited,

Anugraha Housing, No.1363,

Opp. Rajashekhar Hospital, 9^th Cross Road,

J.P.Nagar - 1^st Phase, Bangalore.

2. Sankaralingam Annamalai,

Managing Director,

Tamilnadu Mercantile Bank Limited.,

No.239/2, Pioneer Avenue,

New Natham Road, Narayanapuram,

Madurai – 625014.

3. Shanmugam Rajendran Aravind Kumar,

Director, Tamilnadu Mercantile Bank Limited,

45, New Colony, Thoothukudi – 628 003.

4. Periya Nadar Chidambaram Nadar Ganeshan Ashokkumar,

Director, Tamilnadu Mercantile Bank Limited,

No.48, Gnanagiri Road, Cornation Colony,

Sivakasi, 626 123.

5. Bidalur Seetharamarao Keshavamurthy,

Director, Tamilnadu Mercantile Bank Limited,

No.41, 3^rd Cross Road, Central Excise Layout,

Viyayanagara, Bangalore – 560 040.

6. Nagarajan Kandavel

Director, Tamilnadu Mercantile Bank Limited,

C-3, Pandian Avenue, 123 New Market Street,

Office Choolaimedu High Road,

Chennai – 600 094.

https://hcservices.ecourts.gov.in/hcservices/

7. Shidambaranathan Arumugasami

Director, Tamilnadu Mercantile Bank Limited,

No.6, Javulikadal Street, Sivakasi – 626 123.

8. Vikraman Nithyanandham

Director, Tamilnadu Mercantile Bank Limited,

No.2/3C/12, Palai road, West Ganesh Nagar,

Thoothukudi – 628 008.

9. Balasubramanian Vijayadurai

Director, Tamilnadu Mercantile Bank Limited,

No.35, P.K.S.A.Arumugam Road,

Sivakasi – 626 123.

10. Yesuthansen Pathiudian

Director, Tamilnadu Mercantile Bank Limited,

No.4-B, Cross Street, Srinagar Colony,

Chennai – 600 015.

... Petitioners

Vs

K.G.Inian

... Respondent

PRAYER: Criminal Original Petition filed under Section 482 of

Criminal Procedure Code, to call for the records and quash the

case in C.C.No.240 of 2017 in the Court of the Additional Chief

Metropolitan Magistrate [Economic Offence – 1] Egmore, Chennai

for alleged offences punishable under section 447 and 448 of the

Companies Act and Section 463 and 464 of the Indian Penal Code.

For petitioner : Mr.R.John Sathyan

For Respondent : Mr.M.K.Kabir, Senior Counsel

for Mr.K.Subbu Ranga Bharathi

O R D E R

This petition has been filed to quash the private complaint

in C.C.No.240 of 2017 in the Court of the Additional Chief

Metropolitan Magistrate [Economic Offence – 1] Egmore, Chennai

filed under section 447 and 448 of the Companies Act and Section

463 and 464 of the Indian Penal Code.

2. The crux of the allegation contained in the private

complaint is that the petitioner is the share holder of the 11^th

accused Tamilnadu Mercantile Bank Limited, holding 2500 equity

shares. The accused 1 to 10 are the Directors of the 11^th

accused which is a banking company and is regulated under the

https://hcservices.ecourts.gov.in/hcservices/

Companies Act, 2013 as well as Banking Regulation Act and

Reserve Bank of India. The affairs of the company was managed

by the accused 1 to 10. The 6^th petitioner is the lawyer by

profession and also one of the Director of the bank. He is also

incharge of the affairs and functioning of the bank. The board

consists of two Directors nominated by Reserve Bank of India,

Mr.K.N.Rajan and Mr.K.V.Rajan and they played their role

independently and hence, they have not been arraigned as

accused. It is further stated that in the Annual General

Meeting held on 29.01.2016, the petitioners were elected as

directors. In the same Annual General Meeting, a resolution was

passed to issue bonus share to the existing shareholders in a

500 : 1 ratio. In the Annual General Meeting held on 26.05.2016

the petitioners allegedly decided to issue bonus shares to the