Madras High Court
Viswapriya (India) Ltd vs The Competent Authority on 11 August, 2022
Author: G.K.Ilanthiraiyan
Bench: G.K.Ilanthiraiyan
W.P.No.12952 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 11.08.2022
CORAM:
THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN
W.P.No.12952 of 2021
and W.M.P.No.13762 of 2021
Viswapriya (India) Ltd.,
2, First Cross Road,
Kasturba Nagar,
Adyar, Chennai-600 020. ...Petitioner
-Vs-
1. The Competent Authority
under the TNPID Act,
District Revenue Officer,
Chennai – 600 001.
2. The State Rep. by
The Deputy Superintendent of Police,
Economic Offences Wing-II,
Guindy, Chennai – 32. ... Respondents
Prayer: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Mandamus to direct the respondents to act in
accordance with the provisions of the Tamilnadu Protection of Investors
in Deposits Act and effect attachment of the nine properties set out in the
schedule to the Writ Petition.
https://www.mhc.tn.gov.in/judis
Page 1 of 10
W.P.No.12952 of 2021
For Petitioner : Mr.R.Subramanian
Party-in-person
For Respondent : Mr.A.Gopinath
Government Advocate (Crl. Side)
ORDER
This Writ Petition has been filed to direct the respondents to act in accordance with the provisions of the Tamilnadu Protection of Investors in Deposits Act and effect attachment of the nine properties set out in the schedule to the Writ Petition.
2. The petitioner is a company represented by its Director R.Subramanian, who is arrayed as accused in C.C.No.6 of 2020 on the file of the Special Court for TNPID Act, Chennai. On the allegations of the depositors, the second respondent Police registered a FIR as against the petitioner in Crime No.5 of 2013 for the offences under Sections 406, 420, 120B, 468, 471, 409 r/w 109 of IPC and Section 5 of the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997. The second respondent after completion of investigation filed final report and the same has been taken cognizance in C.C.No.6 of 2020 on the file of the Special Court for TNPID Act, Chennai. https://www.mhc.tn.gov.in/judis Page 2 of 10 W.P.No.12952 of 2021
3. In pursuant to the registration of the FIR, the Director of the petitioner company viz., R.Subramanian was arrested and remanded to judicial custody on 19.09.2015. He filed bail petition before this Court in Crl.O.P.No.23901 of 2015 and this Court by an order dated 16.10.2015, granted bail on the following conditions:-
“22. Accordingly, this petition is ordered to the following effect :
(i) The petitioner is directed to be released on bail on his executing a bond for a sum of Rs.1,00,000/-
(Rupees one lakh only) with two sureties each for a like sum to the satisfaction of the Special Judge under the TNPID Act, Chennai.
(ii) The petitioner shall not leave Chennai, but shall report before the Investigating Officer, every at 10 AM until further orders
(iii) Within a week of his release, the petitioner shall file an affidavit before this Court giving full particulars of the properties with survey 9 numbers, names of village, taluk, district, etc., over which, the petitioner or any of the companies over which, he has an interest, have a claim
(iv) His affidavit shall also contain full particulars of the disputes, in which, those properties are involved or the encumbrances into which, the properties are https://www.mhc.tn.gov.in/judis Page 3 of 10 W.P.No.12952 of 2021 entangled
(v) The affidavit should also contain the details of persons claiming independent right, title or interest over those properties
(vi) It is made clear that this endeavour is not actually to take over the resolution of disputes relating to properties from the normal civil courts, in which, they are pending, but only to see whether there are properties, which can be attached under Section 3 of the TNPID Act, for the benefit of the depositors.”
4. Accordingly, the Director of the petitioner was directed to file an affidavit before this Court giving full particulars of the particulars of the properties with survey numbers, names of village, taluk, district, etc., over which, the petitioner or any of the companies over which, he has an interest, have a claim. It was also directed that his affidavit shall also contain full particulars of the disputes, in which, those properties are involved or the encumbrances into which, the properties are entangled. The affidavit should also contain the details of persons claiming independent right, title or interest over those properties. https://www.mhc.tn.gov.in/judis Page 4 of 10 W.P.No.12952 of 2021
5. Thereafter, the petitioner filed an affidavit dated 26.10.2015, before this Court disclosing 14 items of properties. The petitioner also filed a petition in Crl.M.P.No.5 of 2015 in Crl.O.P.No.23901 of 2015 for relaxation and this Court by an order dated 13.10.2015 recorded the affidavit filed by the petitioner and observed that the Government should now take steps in terms of Section 3 of the TNPID Act, subject to the rights that any third party may claim. Insofar as the conditions are concerned, this Court modified the conditions and directed the petitioner to appear before the second respondent police at 10.00 a.m., on Mondays and Thursdays upto 16.11.2015. After 16.11.2016, the petitioner shall appear as and when called upon to appear. Further directed the second respondent to forward a copy of the affidavit filed by the petitioner to the Government in turn, the Government shall initiate action to pass orders under Section 3 of the TNPID Act, within a period of two weeks from the date of receipt of the affidavit sent by the second respondent.
6. In the mean time, the second respondent completed the investigation and filed final report and the same has been taken cognizance in C.C.No.6 of 2020. However, the respondent had sent https://www.mhc.tn.gov.in/judis Page 5 of 10 W.P.No.12952 of 2021 proposal for attachment of five properties alone to the Government. On receipt of the same, the Government passed G.O.Ms.No.741 Home (Police XIX) Department, dated 06.10.2017 in respect of the five properties alone and attached the same. Now it is pending for making the attachment as absolute, before the Special Court for TNPID Act, Chennai.
7. The petitioner appeared in person and submitted that in another appeal filed before the Hon'ble Supreme Court of India in Criminal Appeal Nos.1177 to 1179 of 2021, the petitioner appeared for some other appellant and also he made additional request before the Hon'ble Supreme Court of India. On the said request, the Hon'ble Supreme Court of India by an order dated 10.03.2022 observed that while he was granted bail, he was required to disclose a list of all his assests which he had. Accordingly, he filed affidavit stating the details of 14 properties. Out of the 14 properties, only five properties were already attached. The petitioner's concern is that the 14 properties may be put to sale at the earliest so as to at least meet his financial liabilities to the extent possible to the depositors of the schemes. In that regard, the https://www.mhc.tn.gov.in/judis Page 6 of 10 W.P.No.12952 of 2021 petitioner was directed to approach this Court by an appropriate application in those proceedings. Therefore, the petitioner now approached this Court by way of this Writ Petition.
8. The learned Government Advocate (Crl. Side) appearing for the respondents submitted that so far, the Competent Authority had sent proposal to attach five properties and the same was accepted by the Government and thereafter passed the Government Order in G.O.Ms.No.741 dated 06.10.2017 and attached the five properties out of 14 properties. Insofar as the other properties are concerned there are dispute pending between the third party. Therefore, they could not able to attach the remaining properties.
9. Heard Mr.R.Subramanian, Party-in-person and Mr.A.Gopinath, learned Government Advocate (Crl. Side) appearing for the respondents.
10. It is seen that in respect of the property which were already attached also had disputes. Even then, the respondent proposed to attach https://www.mhc.tn.gov.in/judis Page 7 of 10 W.P.No.12952 of 2021 the same and it is pending for making the Government Order as absolute. The only concern of the petitioner is that if all the properties put into sale to meet out the financial liabilities to the depositors under various scheme, after fulfillment of the liabilities, he can deal with the remaining properties, since all the 14 items of properties are more than the value Rs.140 to 150 crores.
11. In fact, while granting bail to the petitioner, this Court imposed specific conditions that the affidavit of the petitioner should contain full particulars of the disputes, in which, those properties were involved or the encumbrances into which, the properties are entangled and the details of persons claiming independent right, title or interest over those properties. Further observed that this endeavour is not actually to take over the resolution of disputes relating to properties from the normal civil Courts, in which, they are pending, but only to see whether there are properties, which can be attached under Section 3 of the TNPID Act, for the benefit of the depositors.
https://www.mhc.tn.gov.in/judis Page 8 of 10 W.P.No.12952 of 2021
12. Considering the above facts and circumstances, this Court deems it fit to direct to the respondents to initiate action in accordance with the provisions under Section 3 of the TNPID Act, 1997 and effect the attachment of remaining nine properties set out in the schedule of the affidavit filed by the petitioner dated 26.10.2015 before this Court, within a period of twelve weeks from the date of receipt of a copy of this Order.
13. With the above direction, the Writ Petition stands disposed of. Consequently, connected miscellaneous petition is closed. There shall be no order as to cost.
11.08.2022 Internet: Yes Index : Yes/No Speaking/Non Speaking order rts https://www.mhc.tn.gov.in/judis Page 9 of 10 W.P.No.12952 of 2021 G.K.ILANTHIRAIYAN. J, rts To
1. The District Revenue Officer, Competent Authority under the TNPID Act, Chennai – 600 001.
2. The Deputy Superintendent of Police, Economic Offences Wing-II, Guindy, Chennai – 32.
3. The Public prosecutor, Madras High Court, Chennai.
W.P.No.12952 of 2021 and W.M.P.No.13762 of 2021
11.08.2022 https://www.mhc.tn.gov.in/judis Page 10 of 10