Sri Ravi Anantha vs The State Of Karnataka on 21 November, 2024

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Karnataka High Court

Sri Ravi Anantha vs The State Of Karnataka on 21 November, 2024

SRI KIRAN S. JAVALI, SR. COUNSEL FOR SRI CHINMAY J MIRJI, ADV., FOR R-2) -2- NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 THIS CRL.P IS FILED U/S.482 CR.P.C (U/S 528 BNSS) PRAYING TO QUASH THE CRIMINAL PROCEEDINGS IN CC.NO.60659/2024, PENDING BEFORE THE HONBLE 29th ACMM COURT, BENGALURU ARISING FROM CR.NO.670/2023 REGISTERED BY MAHADEVAPURA P.S., WHITEFILED SUB-DIVISION, BENGALURU CITY, CHARGE SHEETED FOR THE OFFENCE P/U/S 420,468,469,471,120-B OF IPC, SEC. 102 AND 103 OF THE TRADE MARKS ACT, TO THE EXTENT IT CONCERNS THE PETITIONER/ACCUSED NO.3.

THIS PETITION HAVING BEEN HEARD AND RESEVED ON 06.11.2024, COMING ON FOR PRONOUNCEMENT THIS DAY,THE COURT MADE THE FOLLOWING:

CORAM: HON'BLE MR JUSTICE S VISHWAJITH SHETTY CAV ORDER

1. Accused No.3 in CC No.60659/2024 pending before the Court of XXIX Additional Chief Judicial Magistrate, Bengaluru, arising out of Crime No.670/2023 registered by Mahadevapura Police Station, Bengaluru, for the offences punishable under Sections 120B, 468, 469, 420 and 471 of IPC and Sections 102 and 103 of Trade Marks Act, 1999, is before this Court under Section 482 of Cr.P.C., 1973, with a prayer to quash the entire proceedings in the said case as against him.

2. Heard the learned counsel for the parties. -3-

NC: 2024:KHC:47296 CRL.P No. 8782 of 2024

3. FIR in Crime No.670/2023 was registered by Mahadevapura Police Station, Bengaluru, for the aforesaid offences against Sanjana Anantha and nine others based on the first information dated 16.10.2023 received from Sagar Avinash Kalamadi, Associate Manager Legal, Tata Elxsi Limited, Whitefield, Bengaluru. Investigation in the case is completed and charge sheet has now been filed against three persons for the aforesaid offences and the petitioner is arraigned as accused No.3 in the charge sheet. The Trial Court having taken cognizance of the charge sheeted offences has issued summons to accused in proceedings bearing CC No.60659/2024. Being aggrieved by the same, petitioner is before this Court.

4. Learned Senior counsel appearing on behalf of the petitioner submits that a perusal of the charge sheet allegations would make it very clear that petitioner himself is the victim of the fraud committed by accused Nos.1 and 2. Petitioner was made to believe by accused No.1 that accused No.2 was the Director of Company known as 'Tata Elxsi Limited'. Petitioner has paid a huge amount of Rs.1.23 crores, which was transferred to the account of accused No.1 for the purpose of preparing necessary documents. He refers to various -4- NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 documents and the notices issued on behalf of the petitioner to M/s. Tata Elxsi Limited Company after registration of FIR in the present case and submits that petitioner had no intention to cheat the Company. Petitioner is not a party to the fraudulent documents created by accused Nos.1 and 2 and the said documents were created by accused Nos.1 and 2 and the petitioner was made to believe that they are genuine documents. M/s. Tata Elxsi Limited has not suffered any financial loss in the present case and on the other hand, petitioner is the victim of fraud played by accused Nos.1 and 2 and therefore, prosecuting the petitioner for the alleged offences would amount to abuse of process of law. Accordingly, he prays to allow the petition.

5. Per contra, learned Senior counsel appearing on behalf of the defacto complainant/respondent No.2 and the learned HCGP appearing on behalf of the State/respondent No.1, have opposed the prayer made in the petition. They submit that charge sheet material makes out a prima facie case against the petitioner for the alleged offences. Petitioner is the proposed beneficiary of the fraud committed in the present case and therefore, it cannot be said that petitioner was not aware of the -5- NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 fraud. Fraudulent documents were submitted by petitioner before the Resolution Professional for Sovereign Industries Limited. Accused persons have committed the alleged fraud in a judicial proceedings and therefore, it is not a fit case for exercising jurisdiction under Section 482 of Cr.P.C. Accordingly, they pray to dismiss the petition.

6. Petitioner herein is the Director of Company known as 'M/s. Anantha Sugars and Distilleries Limited' and it appears that he was interested in taking over the management of a sick sugar industry known as M/s. Sovereign Industries Limited, which was undergoing liquidation process. Sovereign Industries Limited was an insolvent sugar factory, which was put-up for auction under Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal. For the purpose of participating in the auction, the bidder/participant was required to have a minimum annual turnover of Rs.200 crores. It appears therefore the petitioner, who did not have the requisite eligibility criteria had contacted accused No.1, who was earlier working as a Senior Executive - CSF in M/s. Tata Elxsi Limited Company and thereafter started practicing as a corporate lawyer and with the assistance of accused Nos.1 and 2, he had -6- NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 submitted papers before the Resolution Professional expressing interest to participate in the CIRP.

7. The Resolution Professional on verification of the documents submitted on behalf of M/s. Anantha Sugars and Distilleries Limited, appears to have doubted the genuineness of the documents produced along with letter of Expression of Interest and therefore, had sought clarification from M/s. Tata Elxsi Limited, who was projected as a joint venture partner by M/s. Anantha Sugars and Distilleries Limited, regarding genuineness of the documents submitted along with letter of Expression of Interest. It is only then, M/s. Tata Elxsi Limited came to know about the fraud committed by accused persons. Immediately thereafter, legal notices were issued to all the concerned and an internal enquiry was also held. After being satisfied that all the documents which were in the name of M/s. Tata Elxsi Limited submitted by M/s. Anantha Sugars and Distilleries Limited along with their letter of Expression of Interest to participate in the CIRP, were created and fraudulent documents, first informant, who is the authorized representative of M/s. Tata Elxsi Limited had approached the police. Though FIR was initially registered against 10 persons, -7- NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 police after detailed investigation has now filed charge sheet only as against three persons, who had conspired and actively participated in creating the fake documents and committed the alleged offences.

8. The police during the course of investigation have seized the forged and fraudulent documents submitted by the accused persons before the Resolution Professional along with their letter of Expression of Interest and the said documents are part of the charge sheet in the present case. Accused No.2 has portrayed himself as Director-Regulatory and Compliance and authorized representative of M/s. Tata Elxsi Limited and has executed various documents such as confidentiality undertaking, declaration under Section 29A of Insolvency and Bankruptcy Code, 2016, affidavit by the consortium member, consortium agreement, joint venture agreement etc., and a Board Resolution of M/s. Tata Elxsi Limited approving the resolution plan for submission to the Resolution Professional of M/s. Sovereign Industries Limited was also created. Petitioner herein is the major beneficiary of the fraud committed in the present case.

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9. M/s. Tata Elxsi Limited is a listed company whereas M/s. Anantha Sugars and Distilleries Limited, is an unlisted company, which was incorporated only in the year 2022. In the consortium agreement as well as in the joint venture agreement, M/s. Anantha Sugars and Distilleries Limited is projected as a lead consortium member and M/s. Tata Elxsi Limited being a listed company having an annual turnover of more than Rs.500 crores has been projected as consortium member with a holding of 26% in the joint venture business. It is not in dispute that M/s. Tata Elxsi Limited has not invested any amount in the proposed joint venture business and all meetings between accused were always held in hotels. Petitioner claims to be an entrepreneur and it would be difficult to believe that without any investment, 26% holding in the joint venture business is given to M/s. Tata Elxsi. Petitioner appears to have personally participated at all stages before the Resolution Professional and he is also a party to the consortium agreement, joint venture agreement etc. and therefore, the contention put forward by the petitioner that he is a victim of the fraud becomes difficult to be believed at this stage. Petitioner has transferred an amount of Rs.1.23 crores to the -9- NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 personal account of accused No.1, which makes his conduct still more doubtful. Accused Nos.2 and 3 in reply to the queries made by M/s. Tata Elxsi Limited while admitting the mistake committed by them, have stated that the same was done with good intention to serve the farmers.

10. The inherent power under Section 482 of Cr.P.C., can be exercised to quash the proceedings only in cases where charge sheet prima facie do not make out the alleged offences against the accused or if it is found that in order to harass and coerce the accused, they have been falsely implicated in the case. It is only in cases where prima facie, it is found that process of the Court is being abused, to secure the needs of justice, this extraordinary power needs to be used.

11. The Hon'ble Supreme Court in the case of State of Haryana & Others Vs. CH. Bhajan Lal & Others reported in AIR 1992 SC 604, has laid down certain parameters, which provides for exercising of the extraordinary powers under Section 482 of Cr.P.C. Unless the impugned proceedings fall under any one of the category mentioned therein, inherent powers to quash the criminal proceedings cannot be exercised.

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NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 High Courts while exercising power under Section 482 of Cr.P.C., cannot hold a mini-trial and appreciate the charge sheet material and record a finding on the same. All that the High Court is required to consider is whether based on the material collected by the prosecution, the alleged offences are prima facie made out against accused persons.

12. In the case on hand, the documents collected by the investigation officer during the course of investigation, very clearly show that the said documents were created with a dishonest intention knowing very well the act committed is likely to cause harm to the reputation and the property of M/s. Tata Elxsi Limited. Appreciation of entire material on record would prima facie go to show that there was a dishonest intention from the very beginning and though M/s. Tata Elxsi Limited has not suffered any financial loss, the fact remains the documents which were produced along with the letter of Expression of Interest by M/s. Anantha Sugars and Distilleries Limited, which were in the name of M/s. Tata Elxsi Limited, were all fraudulent documents. Accused have been charge sheeted in the present case for the offences punishable under Sections 120B, 468, 469, 420 and 471 of IPC and Sections 102

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NC: 2024:KHC:47296 CRL.P No. 8782 of 2024 and 103 of Trade Marks Act, 1999, and therefore, at this stage, it cannot be said that there is absolutely no material in the charge sheet to proceed against the petitioner for the aforesaid offences. Under the circumstances, I am of the opinion that the prayer made by the petitioner for quashing the impugned criminal proceedings as against him, cannot be entertained. Accordingly, the petition is dismissed.

SD/-

(S VISHWAJITH SHETTY) JUDGE DN

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