{"id":144527,"date":"2007-03-09T00:00:00","date_gmt":"2007-03-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/nellikunnan-abdul-azeez-vs-s-i-capital-and-financial-on-9-march-2007"},"modified":"2017-11-04T23:17:15","modified_gmt":"2017-11-04T17:47:15","slug":"nellikunnan-abdul-azeez-vs-s-i-capital-and-financial-on-9-march-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/nellikunnan-abdul-azeez-vs-s-i-capital-and-financial-on-9-march-2007","title":{"rendered":"Nellikunnan Abdul Azeez vs S.I.Capital And Financial &#8230; on 9 March, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Nellikunnan Abdul Azeez vs S.I.Capital And Financial &#8230; on 9 March, 2007<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C) No. 8514 of 2005(L)\n\n\n1. NELLIKUNNAN ABDUL AZEEZ, S\/O.NELLIKUNNAN\n                      ...  Petitioner\n2. NELLIKUNNAN ASHRAF, NELLIKUNNAN MUHAMMED\n\n                        Vs\n\n\n\n1. S.I.CAPITAL AND FINANCIAL SERVICES LTD,.\n                       ...       Respondent\n\n2. STATE OF KERALA, REPRESENTED BY THE\n\n                For Petitioner  :SRI.K.SHRIHARI RAO\n\n                For Respondent  :PUBLIC PROSECUTOR\n\nThe Hon'ble MR. Justice R.BASANT\n\n Dated :09\/03\/2007\n\n O R D E R\n                                    R.BASANT, J\n\n                          ------------------------------------\n\n                           W.P(C).No.8514 of 2005\n\n                         -------------------------------------\n\n                    Dated this the  9th day of March, 2007\n\n\n                                    JUDGMENT\n<\/pre>\n<p>       The   petitioners   are   accused   3   and   4   in   a   prosecution   under<\/p>\n<p>Section 138 of the N.I Act.  Altogether there were 4 accused persons.<\/p>\n<p>1st  accused is a company.   2nd  accused is the Managing Director, who<\/p>\n<p>had signed on behalf of the company in the cheque.  Accused 3 and 4<\/p>\n<p>are alleged to be the director of the company.   It is alleged in para.2<\/p>\n<p>and   later   in   para.4   of   the   complaint   that   accused   3   and   4   are<\/p>\n<p>responsible   for   all   action,   omissions   etc.   done   by   the   1st  accused<\/p>\n<p>company   and   that   they   are   taking   active   part   in   the   running   of   the<\/p>\n<p>business of the company.  The complaint was filed as early as in 2001.<\/p>\n<p>Cognizance   was   taken   by   the   learned   Magistrate.     The   petitioners<\/p>\n<p>have   not  appeared  before   the  learned   Magistrate  so  far.     They   have<\/p>\n<p>come   to   this   Court   with   this   petition   under   Article   227   of   the<\/p>\n<p>Constitution of India to quash the proceedings initiated against them.<\/p>\n<p>       2.     The crux of the contentions is that they have ceased to be<\/p>\n<p>directors of the company w.e.f 20.11.1995 and in as much as they are<\/p>\n<p>not   directors   of   the   company   on   20.11.1995,   they   cannot   be   made<\/p>\n<p>liable   for   the   cheque   which   bears   the   date   16.03.2001   and   its<\/p>\n<p>subsequent dishonour etc.<\/p>\n<p><span class=\"hidden_text\">W.P(C).No.8514 of 2005                         2<\/span><\/p>\n<p>       3.      In   support   of   this   plea,   the   petitioners   have   produced<\/p>\n<p>Ext.P1   to   show   that   they   have   ceased   to   be   the   directors   w.e.f<\/p>\n<p>20.11.1995.     In   these   circumstances,   it   is   contended   that   the<\/p>\n<p>petitioners   can   never   be   subjected   to   the   trauma   of   facing   this<\/p>\n<p>criminal prosecution under Section 138 read with 141 of the N.I Act.<\/p>\n<p>Ext.P1   is   a   search   report   issued   by   the   Registrar   of   Companies   in<\/p>\n<p>which   it   is   mentioned   that   the   petitioners   have   ceased   to   be   the<\/p>\n<p>directors  w.e.f  20.11.1995  and  another  person  was   appointed  as   the<\/p>\n<p>director with effect from that date.\n<\/p>\n<\/p>\n<p>       4.      The   learned   counsel   for   the   respondent\/complainant<\/p>\n<p>submits   that   Ext.P1   is   of   no   worthy     on   which   it   is   written   as   it   is<\/p>\n<p>evident from a close scrutiny of Ext.P1 itself that this theory that the<\/p>\n<p>petitioners   have   ceased   to   be   the   directors   was   advanced   only   in   a<\/p>\n<p>Form 32 report filed on 15.03.2004.  Admittedly as seen from Ext.P1,<\/p>\n<p>no   Audited   Balance   Sheet   or   Annual   Returns   were   filed   by   the<\/p>\n<p>company   for   the   period   31.03.1994   to   31.03.2004.     The   cheque   is<\/p>\n<p>dated 16.03.2001 and the complaint was filed on 01.10.2001.  In these<\/p>\n<p>circumstances, the self serving statement in Form 32 statement filed<\/p>\n<p>on   15.03.2004   that   the   petitioners   have   retired   from   the   company<\/p>\n<p>w.e.f 20.11.1995 cannot, at any rate, persuade this Court to invoke its<\/p>\n<p>extraordinary   inherent   jurisdiction   under   Article   227   of   the<\/p>\n<p>Constitution.   At any rate, that is the plea which the petitioners must<\/p>\n<p><span class=\"hidden_text\">W.P(C).No.8514 of 2005                      3<\/span><\/p>\n<p>be left to plead and establish in the trial which was held. The decision<\/p>\n<p>in <a href=\"\/doc\/1302578\/\">S.M.S Pharmaceuticals Ltd. v. Neeta Bhalla<\/a>  [(2005) 8 SCC 89]<\/p>\n<p>cannot   obviously   has   any   explanation   in   the   light   of   the   specific<\/p>\n<p>averments   which   are   seen   in   paragraphs   2   and   4   of   the   complaint.<\/p>\n<p>The learned counsel for the respondent\/complainant alertly points out<\/p>\n<p>that   the   petitioners   are   only   trying   to   camouflage   the   issue   and<\/p>\n<p>mislead   the   Court   by   attempting   to   place   reliance   on   Ext.P1.     I   find<\/p>\n<p>merit   in   this   objection   raised   by   the   learned   counsel   for   the<\/p>\n<p>respondent.  Ext.P1 document cannot obviously deliver any advantage<\/p>\n<p>to   the  petitioners  at   this   stage   of   the   proceedings   or   entitle   them  to<\/p>\n<p>claim quashing of proceedings.\n<\/p>\n<\/p>\n<p>       5.     It is true that this Court in the order dated 07.03.2007 in<\/p>\n<p>W.P(C)   No.35281   of   2005   has,   accepting   the   original   of   Ext.P2<\/p>\n<p>produced   in   this   case,   directed   the   quashing   of   proceedings   under<\/p>\n<p>Article 227 of the Constitution.  It was not brought to the notice of this<\/p>\n<p>Court   and   this   Court   committed   the   error   of   not   appreciating   the<\/p>\n<p>significance of the relevant entries in Ext.P1 that such Form 32 report<\/p>\n<p>was  filed  only   on  15.03.2004.    That  obvious  error  committed  by   this<\/p>\n<p>Court  in   W.P(C)   No.35281   of   2005,   cannot   deliver   any   advantage   to<\/p>\n<p>the petitioners in this case.\n<\/p>\n<\/p>\n<p>       6.     This   Crl.M.C   is,   in   these   circumstances,   dismissed.     It   is<\/p>\n<p>reported   that   the   petitioners   have   not   appeared   before   the   learned<\/p>\n<p><span class=\"hidden_text\">W.P(C).No.8514 of 2005                      4<\/span><\/p>\n<p>Magistrate   so   far.     They   shall   forthwith   appear   before   the   learned<\/p>\n<p>Magistrate.     The   learned   Magistrate   must   take   expeditious   steps   to<\/p>\n<p>secure the presence of the petitioners and ensure that the complaint<\/p>\n<p>is   disposed   of   as   expeditiously   as   possible   &#8211;   at   any   rate,   within   a<\/p>\n<p>period   of   45   days   from   the   date   on   which   the   petitioners   appear<\/p>\n<p>before the learned Magistrate.\n<\/p>\n<\/p>\n<p>                                                              (R.BASANT, JUDGE)<\/p>\n<p>rtr\/-\n<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Nellikunnan Abdul Azeez vs S.I.Capital And Financial &#8230; on 9 March, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C) No. 8514 of 2005(L) 1. NELLIKUNNAN ABDUL AZEEZ, S\/O.NELLIKUNNAN &#8230; Petitioner 2. NELLIKUNNAN ASHRAF, NELLIKUNNAN MUHAMMED Vs 1. S.I.CAPITAL AND FINANCIAL SERVICES LTD,. &#8230; Respondent 2. STATE OF KERALA, REPRESENTED BY [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-144527","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Nellikunnan Abdul Azeez vs S.I.Capital And Financial ... on 9 March, 2007 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/nellikunnan-abdul-azeez-vs-s-i-capital-and-financial-on-9-march-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nellikunnan Abdul Azeez vs S.I.Capital And Financial ... on 9 March, 2007 - Free Judgements of Supreme Court &amp; 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