IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF NOVEMBER 2019 BEFORE THE HON’BLE MR JUSTICE K N PHANEENDRA CRIMINAL PETITION No.7740 OF 2019 BETWEEN:
ANAND C.G.
SON OF C.A.GOPINATH AGED 55 YEARS HAVING OFFICE AT “TRINETRA”, NO.209, MOTA CHAMBERS CUNNINGHAM ROAD BANGALORE-560 052. … PETITIONER (BY SRI.C.V.NAGESH, SR. ADV. FOR SRI.RAGHAVENDRA K., ADV.) AND:
STATE OF KARNATAKA BY THE STATION HOUSE OFFICER BASAVANGUDI POLICE STATION STATE PUBLIC PROSECUTOR HIGH COURT BUILDING BANGALORE-560 001. ... RESPONDENT (BY SRI.ROHITH B.J., HCGP) THIS CRIMINAL PETITION IS FILED UNDER SECTION 438 OF CR.P.C. TO PLEASED TO ENLARGE THE PETITIONER ON BAIL IN THE EVENT OF HIS ARREST IN CR.NO.145/2019 OF JAYANAGAR SUB DIVISION, BASAVANGUDI POLICE STATION, BENGALURU CITY FOR THE OFFENCE P/U/S 76 OF THE CHIT FUNDS ACT AND U/S. 406, 420 R/W SEC.34 OF IPC AND ETC.
THIS PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER Heard learned Senior Counsel Sri C V Nagesh for petitioner and also learned HCGP for the State. Perused the records.
2. Respondent/police have registered a case in Crime No.145/2019 against the petitioner and others for the offence under Section 76 of Chit Funds Act and also under Sections 406, 420 read with Section 34 IPC. The Registrar of Co-operative Societies has lodged a complaint before the jurisdictional police i.e. respondent/police on the allegation that in the year 2016-17 the petitioner and others were running chit fund business on obtaining licence granted by the Assistant Registrar of Co-operative Societies, Bengaluru. They have collected lot of money from the customers under the chit business and they have not paid any amount to the customers and thereby they have cheated the customers at large. One Thimmegowda B Y and Raju K have been specifically mentioned as the Directors of the said Company and they appeared before the Registrar and they have accepted that they were due to their customers and they requested time to pay the said amount. Inspite of granting time by the Assistant Registrar of Co-operative Societies, they have not paid the said amount. Therefore, narrating the names of the customers who said to have been cheated by the accused persons, a complaint came to be lodged before the police for registration of the case under Sections 76 and 77 of the Chit Funds Act, 1982. Police have registered a case apart from the above said provisions, also incorporated the provisions under Sections 406, 420 IPC.
3. Through the learned counsel has raised several legal questions but presently, I do not want to discuss all those things because it shall prejudice either of the parties.
4. Be that as it may. The learned counsel also brought to the notice of this Court that the petitioner was only appointed as a non-executive Addl. Director for the purpose of giving legal assistance to the said company. He is a practicing advocate and he came to know about the irregularities in the said company. Therefore, he tendered his resignation on 29.12.2018 itself and the same was accepted by the Registrar of Companies vide order dated 01.01.2019 as per the documents produced before the Court which are at page Nos.22 to 26, wherein the said authority i.e., Registrar of Companies, Bengaluru has specifically stated that the above mentioned Director i.e., the petitioner herein is not associated with the Company with effect from 01.01.2019. Apart from that the Company has also issued a letter to the petitioner on 03.01.2019 stating that the petitioner was only functioning as non-executive director of the Company and the Company was being handled by its Managing Director and other Directors of the Company. It is also stated that the petitioner during the period of his directorship with the Company did not disburse any money to the chit fund collectors. Further, he was not responsible for the administration of the management of the Company.
5. On going through the above said documents, at this stage, it clearly discloses that he was a non- executive director and not responsible for collection or disbursement of the chit fund money to any of the customers as per the document produced before the Court as on today.
6. Looking to the above said facts and circumstances, in my opinion the petitioner ceases to be a director of the said Company as on the date of the lodging of the complaint itself. Hence, the relationship if any and any role assigned to him for disbursing or collecting of any money from the customers or if there is any conspiracy between other Directors and Managing Director has to be established during the course of investigation and trial. Therefore, in my opinion, petitioner is entitled to be enlarged on bail. Hence, the following:
ORDER The petition is allowed. Consequently, the petitioner shall be released on bail in the event of his arrest in connection with Crime No 145/2019 of Basavanagudi Police Station, for the alleged offences- pending on the file of 4th ACMM Court, Bangalore City subject to the following conditions:-
i) The petitioner shall surrender himself before the Investigating Officer within Ten days from the date of receipt of a certified copy of this order and shall execute his personal bond for a sum of Rs.Two lakhs with one surety for the like-sum to the satisfaction of the concerned Investigating Officer.
ii) The petitioner shall not indulge in hampering the investigation or tampering the prosecution witnesses.
iii) The petitioner shall co-operate with the Investigating Officer to complete the investigation, and he shall appear before the Investigating Officer as and when called for.
iv) The petitioner shall not leave the jurisdiction of the Investigating Officer without prior permission, till the charge sheet is filed or for a period of three months whichever is earlier.
v) The petitioner shall mark his attendance once in 15 days i.e., on Sunday between 10.00 am and 5.00 pm., before the Investigating Officer for a period of two months or till the charge sheet is filed, whichever is earlier.
In view of the disposal of the petition on merits, I.A.1/2019 does not survive for consideration. Hence, it is dismissed.
Sd/- JUDGE brn