2026:MHC:33

IN THE HIGH COURT OF JUDICATURE AT MADRAS

RESERVED ON : 17.12.2025

PRONOUNCED ON : 02.01.2026

CORAM :

THE HON'BLE MR. JUSTICE SUNDER MOHAN

Crl.A.No.254 of 2023

and Crl.MP.No.3426 of 2023

S.Sivakumar … Appellant/Accused No.3

v.

State rep. by Inspector of Police,

Economic Offences Wing II,

Coimbatore District,

[Cr.No.2 of 2014] ... Respondent/Complainant

Criminal Appeal filed under Section 374(2) of Code of Criminal Procedure, against the conviction of the appellant/A3 and sentence imposed on him in C.C.No.17 of 2014 dated 11.01.2021 on the file of the learned Special Judge, Special Court under TNPID Act, Coimbatore and set aside the conviction and

sentence and allow this appeal.

For Appellant : Mr.C.S.Saravanan

For Respondent : Mr.S.Rajakumar

Additional Public Prosecutor

JUDGMENT

The Criminal Appeal challenges the judgment dated 11.01.2021 passed in C.C. No. 17 of 2014 by the learned Special Judge, Special Court under the TNPID Act, Coimbatore, convicting and sentencing the appellant/A3 as follows:

Sl.No. Offence under Sentence imposed Section

1. 1/6^th portion of fine amount [Rs.2,10,000/-]

imposed on A1-company i.e., Rs.35,000/-

2. 120B IPC For each counts, to undergo two years RI and (35 counts) to pay fine of Rs.2,000/-, in default to undergo further one year SI;

3. 406 IPC For each counts, to undergo three years SI and (35 counts) to pay fine of Rs.2,000/-, in default to undergo further one year SI;

4. 420 IPC For each counts, to undergo three years SI and (35 counts) to pay fine of Rs.2,000/-, in default to undergo further one year SI;

5. 5 TNPID Act For each counts, to undergo three years SI and to pay fine of Rs.2,000/-, in default to undergo further one year SI;

Total fine amount is Rs.3,15,000/-.

The sentences were ordered to run concurrently.

2. The prosecution case is that the appellant along with the other accused had collected deposits to the tune of Rs.68,46,025/- from 35 depositors (46 counts) under various schemes and failed to repay the depositors and thus, committed the offences as stated above.

3. The appellant was arrayed as A3. The remaining accused viz., A1, A2, A4 to A6 and A8 filed a criminal appeal before this Court in Crl.A.No.167 of 2021 and pending appeal, this Court had directed the appellants therein to settle all the depositors and also directed the District Revenue Officer, Coimbatore, to file a status report regarding the settlement made by the appellants. On receipt of the said report, on 17.04.2025, this Court had observed as follows:

11. Pending Appeal, this Court directed the Accused/Appellants to settle the entire dues to all the depositors by depositing the amount with the District Revenue Officer, Coimbatore, who is the Competent Authority under TNPID Act. The District Revenue Officer, Coimbatore as Competent Authority was directed to file a status report regarding entire settlement. As per the report filed on 27.09.2023, only 8 persons remains to be paid the entire dues. The amount was available with the Competent Authority. Therefore time was granted to the Competent Authority to settle the entire dues and report regarding settlement.

12. Accordingly, the District Revenue Officer, Coimbatore, the Competent Authority under the TNPID Act Dr.M.Sharmila in her report vide Ref. No.5181/2015/I-1, dated 06.02.2024, had furnished the details of payment made to the remaining 8 depositors with their names and affidavit to that effect with the proof of their identity. The District Revenue Officer had further stated that the offence alleged against the Accused can be compound under Section 5-A of the TNPID Act, 1997. The status report of the District Revenue Officer, Coimbatore/Competent Authority filed vide Ref.

No.5181/2015/I-1, dated 06.02.2024, is accepted, recorded and taken on file.

In the light of the above discussion, this Criminal Appeal is allowed.

The judgment of conviction in C.C.No.17 of 2014 on the file of the learned Special Judge, Special Court under TNPID Act Cases, Coimbatore, is set aside by compoundin