Kerala High Court
M. Aramugham vs The State Of Kerala on 21 June, 2018
Author: V Raja Vijayaraghavan
Bench: V Raja Vijayaraghavan
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V
THURSDAY, THE 21ST DAY OF JUNE 2018 / 31ST JYAISHTA, 1940
Bail Appl..No. 3945 of 2018
CRIME NO.537/2018 OF PALARIVATTOM POLICE STATION, ERNAKULAM
PETITIONER/ACCUSED :
M. ARAMUGHAM,
S/O.A.MARUTHA MUTHU,
2 & 4, KAMAYA SAMY STREET,
BODINAYAKANUR, TAMIL NADU.
BY ADVS.SRI.BABU S. NAIR
SMT.SMITHA BABU
SRI.P.A.RAJESH
SMT.SHAMSEERA. C.ASHRAF
SMT.PRIYADA R MENON
RESPONDENTS/STATE & COMPLAIANT :
1. THE STATE OF KERALA,
REPRESENTED BY PUBLIC PROSECUTOR,
HIGH COURT OF KERALA,
ERNAKULAM, KOCHI-682031.
2. THE SUB INSPECTOR OF POLICE,
PALARIVATTOM POLICE STATION,
ERNAKULAM DISTRICT, PIN-682025.
BY PUBLIC PROSECUTOR SMT.K.K.SHEEBA
THIS BAIL APPLICATION HAVING BEEN FINALLY HEARD ON 20.6.2018,
THE COURT ON 21.6.2018 PASSED THE FOLLOWING:
EL
21.6.2018
R.NARAYANA PISHARADI, J
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B.A.No.3945 of 2018
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Dated this the 21st day of June, 2018
ORDER
This is an application for anticipatory bail filed under Section 438 Cr.P.C.
2. The petitioner is the second accused in the case registered as Crime No.537/2018 of the Palarivattom police station under Sections 406, 420, 465 and 471 read with 34 I.P.C.
3. The prosecution case can be stated as follows: The petitioner is the Managing Director of the company by name Cardamom Growersforever Private Limited. He was a partner of the firm by name Cardamom Growers Federation pursuing the business of spices. The firm had auction licence for the period from 2014 to 2017 which was obtained from the Spices Board. The firm was subsequently dissolved and a new company by name M/s.Cardamom Growersforever Private Limited was incorporated. The petitioner is the Managing Director of that B.A.No.3945/2018 2 company. On 25.09.2017, he made a request to the Spices Board for changing the name of the firm in the licence as M/s.Cardamom Growersforever Private Limited. On making such request, the petitioner had produced before the Spices Board, the Memorandum and Articles of Association of the company. On the basis of the request made by the petitioner, the Spices Board issued cardamom licence in the name of the new company. Later, based on the complaint made by a third party, the Spices Board conducted a detailed scrutiny of the documents furnished by the company for change of name in the licence. Then, it was found that the Memorandum of Association of the company furnished by the petitioner to the Spices Board for change of name in the licence and the Memorandum of Association of the company furnished to the Registrar of Companies are entirely different. As per the Memorandum of Association furnished to the Spices Board, the company is described as one formed succeeding the firm earlier existed. However, the Memorandum of Association filed before the Registrar of Companies did not mention so. It is alleged that it was on the strength of a forged B.A.No.3945/2018 3 and fraudulently created Memorandum of Association that the petitioner obtained licence from the Spices Board in the name of the company. It is further alleged that the company participated in cardamom auction and gained 36 lakhs rupees as commission and the act of the petitioner also resulted in a loss of Rs.50,000/- to the Spices Board towards licence fee.
4. On the basis of the complaint made by the Director (Marketing), Spices Board to the Station House Officer, Palarivattom police station the case was registered against the company and the petitioner who is its Managing Director.
5. Heard the learned counsel for the petitioner and the learned Public Prosecutor. Perused the case diary.
6. The sum and substance of the allegations raised against the petitioner is that he forged and created a Memorandum of Association which is different from the Memorandum of Association which was furnished to the Registrar of Companies and submitted the forged and fraudulently created Memorandum of Association before the Spices Board to obtain a licence in the name of the company as a successor to the firm B.A.No.3945/2018 4 which earlier existed. In this connection, it is to be noted that as per Rule 10(n) of the Cardamom (Licencing and Marketing) Rules, 1987, on transfer of business to another person, the auctioneer shall intimate the same to the Spices Board and surrender his licence and the transferee shall obtain a fresh licence in accordance with the provisions of the Rules. The petitioner has no case that on transfer of the business conducted by the partnership firm to the company on dissolution of the firm, the licence was surrendered to the Spices Board and a new licence was obtained in the name of the company. On the other hand, the allegation against him is that by submitting a fraudulently created Memorandum of Association of the company to the effect that the company succeeded to the business of the partnership firm, a change of name in the licence was procured by him from the Spices Board.
7. Even if the entire allegations against the petitioner are accepted as true and correct, custodial interrogation of him appears to be not necessary to have an effective investigation of the case. The entire documents are now with the Investigating B.A.No.3945/2018 5 Officer. Even if they have not been collected by him, he could collect them from the Spices Board and the Registrar of Companies. The case against the petitioner mainly depends on documentary evidence.
8. Moreover, it is seen that the Spices Board had issued Annexure B notice to the company to show cause why the licence shall not be cancelled. Annexure D is the reply notice sent by the company to the Spices Board in response to that notice. In this reply, which is given by him as the Managing Director of the company, the petitioner has more or less admitted that the Memorandum of Association of the company furnished to the Spices Board was not correct. The explanation given by him in this reply is that on account of an inadvertent error committed at the time of uploading the documents, an unamended version of the Memorandum of Association was attached instead of the amended version of the Memorandum of Association of the company and that there was no intention to cheat the Spices Board. This is a matter to be established at the time of the trial of the case.
B.A.No.3945/20186
9. Considering the aforesaid facts and circumstances, especially considering the fact that custodial interrogation of the petitioner is not necessary to have an effective investigation of the case, I am inclined to grant him the benefit of pre-arrest bail.
10. In the result, the petition is allowed and it is ordered as follows:
1) The petitioner shall be released on bail on executing a bond for Rs.50,000/- (Rupees fifty thousand only) with two sureties each for the like amount in the event of his arrest by the police in Crime No. 537/2018 of Palarivattom Police Station.
2) The petitioner shall appear before the investigating officer between 9 a.m and 11 a.m on all Mondays for a period of four months from the date of his release on bail or till final report is filed, whichever is earlier.
3) The petitioner shall surrender his passport in the Magistrate's Court / jurisdictional court concerned within three days from the date of his release on bail. If he has no passport, he shall file an affidavit to that effect in that court within that period.B.A.No.3945/2018
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4) The petitioner shall not influence or intimidate the prosecution witnesses or tamper with the evidence in the case.
5) The petitioner shall appear before the investigating officer as and when directed by him in writing to do so.
6) If the petitioner violates any of the conditions of bail, it is open to the Court having jurisdiction over the case to cancel his bail without any further orders from this Court but in accordance with law.
Sd/-
R.NARAYANA PISHARADI, JUDGE jsr