CMA.No.1146 of 2022

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated: 13.06.2023

Coram:

THE HONOURABLE MRS.JUSTICE N.MALA

CMA.No.1146 of 2022

and

CMP.No.8346 of 2022

S.Babu

....Appellant

vs

1.State Rep. by Inspector of Police

Economic Offences Wing-II,

Coimbatore.

2.Kubera Auto Finance,

No.7/79, Elakkumanayakanpatti Main Road,

Kangeyam Taluk,

Tiruppur District.

3.S.T.Saminathan

4.S.P.Muthuvel

5.K.Manivel

6.S.P.Rajendrakumar

7.S.Loganayagi

8.M.Selvi

(These respondents 2 to 8 were already set exparte before the Trial Court)

...Respondents

Prayer: Civil Miscellaneous Appeal is filed under Section 11 of TNPID

Act, 1997, to call for the records pertaining to the order and decretal

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CMA.No.1146 of 2022

order dated 01.04.2022 made in O.A. No.4 of 2019 on the file of the

Special Judge, Special Court under TNPID Act, Coimbatore, in ordering

attachment and sale of appellant's property and set aside the same as

illegal, arbitrary contrary of law and evidence and settled principles of

law.

For appellant

: Mr.R.Veeramani

For Respondent-1: Mr.C.Jayaprakash

Government Advocate.

JUDGMENT

The 8^th respondent in O.A.No.4 of 2019 has filed the appeal

challenging the order of attachment and sale of the properties scheduled

to the O.A.

2. The appellant purchased the schedule mentioned properties

from the 5^th resopndent vide sale Deed dated 15.09.2014 registered in

Document No.4012 of 2014. The 5^th resopndent was one of the partners

in the 2^nd respondent financial establishment. The 2^nd respondent,

financial establishment on promise of fanciful interest rates allured

depositors to deposit money with it. One Muthusamy who had

deposited amounts to the tune of Rs.75,000/- lodged a complaint on

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CMA.No.1146 of 2022

10.02.2015 against the 2^nd respondent and the respondents 3 to 8 for

defrauding him in not returning the deposit amount and also for not

paying interest on the deposit from August 2014. A criminal case in

Cr.No.1 of 2015 was initiated under Sections 406 and 420 of IPC and

Section 5 of TNPID Act, 1997. The complaint was investigated and the

case was charged on 29.10.2015, which was taken on file as C.C.No.1 of

2016 before the Special Court under TNPID Act, Coimbatore.

3. During the investigation the 1^st respondent found that the 5^th

respondent had sold the properties purchased by him under Document

No's.1045 and 1233 of 2009 to the appellant with malafide intention. The

1^st respondent therefore filed O.A.No.4 of 2016 before the Special Court

under TNPID Act, Coimbatore under Section 8 and 7(6) of the TNPID

Act for attachment and sale of the properties purchased by the

appellant.

4. Before the Special Court, the 1^st respondent marked Ex.P.1 to

Ex.P.10 and examined the Inspector of Police, EOW-II, Coimbatore as

P.W.1 and respondents 2 to 8 remained ex-parte. The 8^th respondent

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CMA.No.1146 of 2022

examined himself as R.W.1 and marked Ex.R.1, computerized patta.

5. The learned Special Judge on an appraisal of the entire evidence

on record, found that the sale in favour of the appellant by the 5^th

respondent was not in good faith, that the respondents 3 to 8 who were

in management of the financial establishment were bound to settle the

dues of the depositors and that if the properties of appellant were not

attached, the appellant would dispose of the properties, which would be

against the interest of the depositors. Therefore the learned Special

Judge held that in the interest of justice, the schedule properties were to

be attached and sold.

6. Aggrieved by the order of attachment and sale, the appellant

has filed the above appeal.

7. The learned counsel for the appellant submitted that the Special

Court erred in directing the attachment and sale of the properties, over

looking that the properties were purchased by the appellant lon