{"id":187924,"date":"2010-12-23T00:00:00","date_gmt":"2010-12-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/smt-sathyavathi-pattabiraman-vs-ms-s-n-finance-limited-on-23-december-2010"},"modified":"2016-06-14T06:18:50","modified_gmt":"2016-06-14T00:48:50","slug":"smt-sathyavathi-pattabiraman-vs-ms-s-n-finance-limited-on-23-december-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/smt-sathyavathi-pattabiraman-vs-ms-s-n-finance-limited-on-23-december-2010","title":{"rendered":"Smt Sathyavathi Pattabiraman vs M\/S S N Finance Limited on 23 December, 2010"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Smt Sathyavathi Pattabiraman vs M\/S S N Finance Limited on 23 December, 2010<\/div>\n
Author: A.S.Pachhapure<\/div>\n
.1. Crl. P 7'02\/O3\n\nIN THIS HIGH COURT OF KARNATAKA AT BANGALORE\n\nDATED THIS THE 23\"' DAY OF IJECEMBER 2010\n\nBEFO RE\n\nTHE HON'BLE MRJUSTICE A.S.PACHI-{AE\u00a7URE'fI-=1:    _\n\nCRIMINAL PETITION NO.702\/2088 ffjy.   V\"\n\nBETWEEN\n\n1.\n\nSMT. SATHYAVATHI PATTAEIRAMAAI, w.A-.:CAIII3'; \"\nAGED ABOUT 60 YEARS,  X \" _   \" \nW\/O. SRI. A.S. PATTABIRAMAN,  \"  \nR\/O. THE PREM1sEs..BE.AR1NG--. N016-.07-A,\n\nI MAIN, II STAGE, RAJAIJINAQAR;   A I\n\nBANGALORE\u00ab56O 010:  3\n\nJY0TsANA-- EATTI'xEIRAwIAI\\I, M.;B.A.,\nAGED r\"IBt;)UT'53O YEARS,  A\nW'\/0, I\/IA:):I;RAAIA*I*\u00abEI \"EQNETY.\nMANAGE'IvI_ENTc(3.I\\I(:.I,II;I*AI\\IT,\n\nNO. 41. 6, ICOL.LEC\u00a5I3,. A'-.I_I\u00ab:'I\\IUE.\nPOLOALTO CALIF',C)RNIA, U.S.A.\n\n3 'A'J.A,.I?.}A BLE A1;\n .,No_,6o7u_A\",v IIVIAIN. II STAGE.\n PA,'*I*EMELIS STREET\nOFF:.__C.M.H. RQAD,\n\nV . INDIRA'NAGA;R I STAGE,\n\nBANGAl;ORE 38.\n\n'  v REP. ' BY ITS I)IREcTOR\n , '~I>'.S,_MI_IRALI.  RESPONDENT\/S<\/pre>\n
  (M;\/S. MA1″‘1ES}’I AND CO.. ADVS.}<\/p>\n
3 Cr}. P 702\/O3<\/p>\n
THIS CRIMINAL. PETITION IS FILED UNDER SECTION
\n482 CR.P.C. RRAYINC TO REVERSE AND SET ASIDE THE
\nORDER 3;)”: 01.8.02 PASSED BY THE W A.C.M.IvI..
\nBANGALORE CIY IN C.C.NO.82IS\/02 (PCR.NO.799\/02} AND
\nORDERING PROCESS AGAINST THEM FOR ‘R_.T’HEIR
\nAPPEARANCE BEFORE THE COURT AND QUASII”aTI:1E
\nENTIRE PROCEEDINGS.   O’  .\n<\/p>\n
THIS CRIMINAL PETITION IIA_vIN_O- EEEN’.AI-ED’ <\/p>\n
RESERVED, COMING ON FOR! PRO’NO’UNCE1\\\/I–ENT”VOuP’<\/p>\n
ORDERS, THIS DAY, THE COURT MADE’THE EOLIIOWW-C.:”I*ii.R.:<\/p>\n
The petitioners have  -the  by the
\nCourt below taking  v.\u00a7’.[A:’f1F’?_I’I1 for the offence
\npunishable under ASeet:IorIS_   —-\n<\/p>\n
 The -f..”o_I’–the purpose of this petition are
\nas under: ”  4′ h J<\/p>\n
I–*.I.ri.I1 reufezi .I.O”i1l’1\u20ac..})a}:l’i\u20acS as per their rank in the Court.<\/p>\n
“be}o\\”Ar fori\u00bb-.i;he””pI,1rpoSeof Convenience.<\/p>\n
  T}’1%3S4″‘1\u20aciLi\u00a7’l;VOI1{?l’S herein are Accused NoS.2 to 7, xivhereas<\/p>\n
” –.1’\u20ac-‘giVS’LC’i;\u20acd with the Reserve B\u00e9ll\ufb02i of IIId1’a and it aCCep\u00a3.S the<\/p>\n
respc-IIdeII’i*EIefI”eiI1 is the Complairlant.<\/p>\n
V’ .. __The'” ConIp1ainant is 21 .:1on\u00bbbaI1kirIg finarlce Company<\/p>\n
, \/
\n3, \/
\n2′.\n<\/p>\n
fm<\/p>\n
\/.1. Cri. P 702\/O3<\/p>\n
deposits from the public in turn giving them a good rate of<\/p>\n
interest on the said deposits. The money so depositeCi:li’s.beihg;<\/p>\n
generated for further finance for i11C1l1St.I’i\u20acS. hire :’pt.ircf1asir.1lg: ”<\/p>\n
and leasing and the Company is reQ:6i\u00a5’.\ufb02l1’g z1.’ttiraVc\u00e9’t.ii.%fVe iht’erest_y<\/p>\n
and thereby the complainant is CO11dL1.t?T.iI1:g’ the b”e1S’i’i’.1_\u20ac.SS. ~  T A<\/p>\n
Accused No.1 was appointed\ufb01as. an “;E1Xecutit%-e  in
\nthe year 1995 after he took~yo1u1:tary. State
\nBank of India. wherein  ll  y’Agjt.:g,vl””J3epLity General
\nManager. The promgot-ers l ggrnpany thought<\/p>\n
that Accused No lltti’as3’_y_havii-ag’sufficient. \ufb01nancial background<\/p>\n
and would serve”agoyovdypurpose or: the Board and accordingly.
\nhe was inducted intzo the B’o_ar’d”:as an Executive Director. The<\/p>\n
C()I}1p1al}f1E.11’1t wuas._Vu11a’wai*-e that the first accused Wanted to<\/p>\n
 l<.'\u00bbi1l"("3I' Iilfllaf) 53.511'islfiompatiyllolilly to build subterfuge and to siphon<\/p>\n
oll_'_'the_Corripamy's_rri.oney by 1n.isappropr'iatioh and cheating.<\/p>\n
The \ufb01i:rsti'"accL1sed adopted the modus operandi and was<\/p>\n
' i'ile'ge1i1y eilcashing the monies of the Company through various<\/p>\n
a.ccot1'1'1t.s held b his direct. relatives in the said com an . It is
\n _. . Y Y<\/p>\n
 that t.he height of his CI'.iII1l.11E1Ii'fy was achieved in the<\/p>\n
5 Cr]. P 702\/O3<\/p>\n
year 1999 when he became the Managing Director of the
\nCompany. in furtherance of his intention, he is said to have<\/p>\n
misappropriated the amount. to the tune of Rs.5,94,2_1}9_i'4;38.<\/p>\n
He also purchased property in his name and in the"r1afr.1re_::o~i':_his<\/p>\n
wife Accused No.2 by withdrawing the arziouiitefroni the, <\/p>\n
complainant: company by iratlduient. n1ea;=:1s.ppand\u00ab._iiidi..iced_a<\/p>\n
depositor t.o file a company petition*– for wind.i–rig:'L1:p of <\/p>\n
complainant company. He is sa'id::"to have.__sipi1o11ed off huge
\namount from the con.1'pla_int_\u00ab"heo1*ii~panji;..A He dropped three
\ndirectors and in their place  and G.H.Patel<\/p>\n
who are bl1|SS{1…1H:V_Vvi,E1'1\u00a3;1VtV8.I'\u00a73 of 't=he'.j_'fraud'u1e1'1t games being<\/p>\n
enac1:.ec11.: by f everyone had the belief on<\/p>\n
Accused i\ufb01o. i– ihatVheA:_i's_[amiable person. The complainant states<\/p>\n
that Aecvused""1'\u20aco_V.' i v14&sed"vtodvtrithdraw the amount and deposit it<\/p>\n
  rgiames of'Hhi's""re]atiVes and the amount. of deposit<\/p>\n
V'–,riiisappr(';priat'edV '-by Accused No.1 in connection with other<\/p>\n
aiiecused he_s=\u00bbbee;i'ixeiiuxiiemted in para 14 of the coniplairit. The<\/p>\n
_ amouht of deposits in the names of the respective persons has<\/p>\n
 b'er3ijp_give'ri\u00a2ir1 detail and totally a sum of Rs.5,94.2I 914-36 is<\/p>\n
 p sai'd.,_t_of have been misappropriated. The depositors are none<\/p>\n
\/ '
\nV\\ \/\/'5\u00bb.,.\n<\/p>\n
x..,<\/p>\n
6 Cr}. P 702\/O8<\/p>\n
else than the wife of Accused No.1 i.e., Accused No.2. the
\ndaughter Accused No.3. the sister of Accused No.2 who is<\/p>\n
Accused No.4. the brother in law of Accused I\\to.liJW’l1o is<\/p>\n
Accused No.5 and the Indian histitute of }\u00a7I.r1..t4ifep’1*ei1e’LE1″<\/p>\n
Develo-pmeni. wherein Accused No.1 is the Presiderit  said i <\/p>\n
iristitiute and Accused No.7? Smt..Geef;ha W119 is aiso_so_id_ t’o’be\u00b0a<\/p>\n
relative of Accused No.1. The comp1_ainant  <\/p>\n
properties worth Rs.2.65,92,848;{?”were pu.rci1ias:3dvdbp3’iVVAccusedV<\/p>\n
No.1 in his name and .\u00bb–t;1.’1e nariic. this retai:’1ves”V and t.he<\/p>\n
properties have been Valuedfby’  it is the case of<\/p>\n
the complainant  scoririziwviance with Accused<\/p>\n
Nos.2 to 7_ _mAisapp_repria.eied.’ huge amount of money of the
\ncoriipiairiarit”corripar1}}’;– complainant has also given the<\/p>\n
part’icu13.rs oi”A.t:h..eA piioperties by way of Armexures A to H to the<\/p>\n
V.”comVp–lai_J;13-t”.: 1i”i..\u00abaddiiio’h”,”t’.11e complainant has produced many<\/p>\n
t’docu_ii1e1i:t”s.._ir;’vdistipport of his claim and also stibmitted the list<\/p>\n
of wi._t_’nesses to, prove the case against the accused.<\/p>\n
 n j ‘I’he…’:I’ria1 Court after registering the complaint. recorded<\/p>\n
 [ \u00abswori1_.rstatement and under the i1i”:pL1g;hed order has f’Lai{\u20acI’1<\/p>\n
 (_.Yv(‘)”.fN;j:f11′.’\u00bbCE111C(.’. against Accused Nos.2 to 7 and aggrieved by the<\/p>\n
\/3<\/p>\n
7 Cr}. P 702\/O3<\/p>\n
said order, Accused Nos.2 to 7 have filed this petition<\/p>\n
challenging the validity of the order.\n<\/p>\n
3. I have heard the learned counsel for the –pet.itio.r’iers<\/p>\n
and also the respondent. The point that a’i-i\u00abses:&pV”i:;o’ri <\/p>\n
consideration is:   _
\n“Whether the Trial Cotart fwas jtzstiiied
\ntaking cognizance agair:’st*-..t_p11e p\u20ac1’i1i1O{1\u20aci”iSAl1:i1~\u00bb1.lf16′-‘<\/p>\n
offence under Sections  I-E20 1f5C?.’i_  <\/p>\n
4. It is the contention ioffitliie counsel for the<\/p>\n
petitioners t11at.V111’1:e a:1_epc{sitsb  the”‘~n’a.n1e or the petitioners are<\/p>\n
their own  ‘the’v…cc–r1’ipany has no nexus with the
\namount cieposited.  _ ti1.en1:.’ So also, he subrnits that<\/p>\n
Dr.K.R.’Pardn1aizat’1ii;’W1″1o’ is Petitioner No.3 [Accused No.4) has<\/p>\n
.”1’il6dV”a icornpiaiiit to  Karnataka State Consumer Disputes<\/p>\n
Reidrressalvv’\u20aco’1n\u00a3nis~si()11 for taking action against the company<\/p>\n
for  re_fu~n_di..1’1g the deposit amount. it is his submission that<\/p>\n
  niatt-e_r_3is purely of civil nature wherein the company has<\/p>\n
i  V’e\\;1:~s1p_i’r;st,itut:ed the suit against the petitioners and Accused<\/p>\n
x<\/p>\n
8 ‘ Crl. P 702\/03<\/p>\n
No.\u00a3 and in the circumstances. the order taking cogiiizance is<\/p>\n
illegal and pe1″Ve1’se.\n<\/p>\n
5. Per contra, the learned counsel for the ;\u00ab4\u00a2”s;$:’m\u00a7’ie;1:
\nhas supported the order of the Court below.\n<\/p>\n
6. A perusal of the CO1T1pl3li]t r:eveal’s t’hat_.: lldtulji)<\/p>\n
about 41 pages and in additioit. thereare’.doct1ira.-erits i’)roi:1ueed’g<\/p>\n
by the complainant with his c’oIiip3.aii1t Vand”alsol7thel list of<\/p>\n
witnesses. Now. so far as the re’la.tiozishVi”p- ._betweer1 the accused
\nis concerned, Accused No.1.) ‘wh’o’li.s’l the” accused is the<\/p>\n
husband of Acct1sed’*-No.22.  and Accused<\/p>\n
No.4 .is’.the_  -No.2 and Accused No.5 is the
\nbrotherwix\ufb01lawcoil  whereas Accused No.6 is t.he<\/p>\n
institute. Lwhereiri Accused No.1 is the president. and Accused<\/p>\n
. ll\\lo.V7  also a~:”e1ativelHollfAccused No.1. So in the background of<\/p>\n
Ithis_-reIa.t,ionsh.ipVamongst. the accused. if the allegations are<\/p>\n
seer1~.,it is st_’at~ed that Accused No.1. who was 2′: sole signatory<\/p>\n
  on the  drew the amount either in his name or in the<\/p>\n
A  l”;’1a.mel”of some other person. acquired the property riientioned<\/p>\n
  V’ in the schedule and deposited the money in the name of his<\/p>\n
.,__’7w-K’<\/p>\n
9 Crl. P 702\/O8<\/p>\n
relatives and the amount deposited in the respective I1-ames of<\/p>\n
the accused has been \u20acI1t,1I11\u20acI”E1l\u20acd in para 14 of the ‘coinf\ufb02aivritz.<\/p>\n
Totally, an amount of Rs.5,94,21.9l4–f36 has beeiiili <\/p>\n
the name of the accused and others:”S.0& th’esedeposit:s:’were C<\/p>\n
said to have been withdrawn by AectieeldllNo’.’]_v”ai1d_Afftsused<\/p>\n
No.1 is said to have been coi1ir’ni_tted anlarrt ofri\ufb01sap;p’:’*oVpriationV C<\/p>\n
in conspiracy with the other  who cohimiytted an act of
\ncheating and misapp1\u00b0opiriat’ed theifu1id*sjvofltlhe company.<\/p>\n
7. It may true    instituted a suit
\nfor recovery cf’ -the’..’rejiatiyes of Accused No.1, but
\nthat i'[S6’ll”Cl{_;~.}’}:.Cfl– e;\u00e9Aiiipt”the accused from criminal liability, if
\nthere is :I”11ate:_ri.al  yiaceused for the offences alleged. it<\/p>\n
is no dotibtttrtte-__that*…t\u00a7tCcused Nos.4 and 5 had filed<\/p>\n
 CO1np1_t\u00e91it1t’S to Vllthey Karnataka State Consumers Disputes<\/p>\n
 V VflileidyressalnlFortluti in Complaint Nos. 12\/2004 and 41\/2004 and<\/p>\n
1t–helViVt:s_’.o1’de1″ dated 21–1o\u00ab2oo5 has directed to pay<\/p>\n
 Rs.2O lakhs with interest at 1.3% p.a. to the<\/p>\n
 ‘c\u00bbomp1ai*nVai1;ts. The compla.ir1ants before the Forzun were<\/p>\n
:’AcAA(:ue.ed l\\los.4~ and 5 in the complaint lodged before the<\/p>\n
ff.–Cr_-‘nii1*ia1 Court. The mere fact that the E<'ortm1 has passed such<\/p>\n
10 Cr}. P 702\/O3<\/p>\n
an order for refund itself is not a ground piima facie to hold
\nthat the accused are innocent. and that there is a civil dispute.
\nThe question of misappropriat.ion was not for cto'r1side1*a_ti'o;i by<\/p>\n
the Karnataka State Consumer Disputes\u00bb-.Rediressal<\/p>\n
Commission. As to how much properties each of._t;he_l."acct1.lsed_ <\/p>\n
had and whether the amount. in dephosityv'a_s'"acqu–ired_Vybytlheih<\/p>\n
individually or it is the money of the company which has beeri'<\/p>\n
withdrawn by Accused No.1 at'idV.V"d,eposited in names of<\/p>\n
different other accused a nia'tter:"for*consideration in due<\/p>\n
course of trial.\n<\/p>\n
 far  t.h’es””al1eg’a’iior3s in the complaint are
\nconcerne’d, adrI’iit_iedly,h alltiiellaccused are related to each other<\/p>\n
and huge ainount’l3,_as._Vhee~n deposited in the name of other<\/p>\n
 accused and 11Ot”l\u20acS.SW_\u00a3hEtI1 5 crores of money is said to have<\/p>\n
 .rnisVapproijriat.ed. At the stage of taking cognizance, it is<\/p>\n
only” the  which will have to be looked into to find out<\/p>\n
\u00abas to.44whevther’.Vthey constittite an offence punishable under the<\/p>\n
” iprovisaiorisl of the Penal Code. 80 there are specific allegations<\/p>\n
.Aj_.th;1i’.'”Accused No.1 in conspiracy with the other accused<\/p>\n
c’h”eai.ed the company and in these circu.msi,ancesi the other<\/p>\n
J-5
\n\/I<\/p>\n
5<\/span>
\n1 \/\/W –\n<\/p>\n
12 Cr}. P 702\/03<\/p>\n
and the prima faeie niateriai on record. 80 ihe perusa_I.__oi’ the<\/p>\n
Compiaint. reveais that there is prinia faeie material aga.i_.r_’;–si”*t.he<\/p>\n
petitioners for the offence under Sections 403  <\/p>\n
In that View of the matter. as there isJ11Q_meri_’;f in “1′;h’i$. reviiseiori I2<\/p>\n
answer the point in affirmative 2indj’p;t0ceed “~i’:_d  <\/p>\n
foliowing:<\/p>\n
\n\n,omm\ufb01jV_\nThe petition is disn1isVsed.'\"      --. Sd E.-\n\nJUDGE\n\nJL\n\n \n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court Smt Sathyavathi Pattabiraman vs M\/S S N Finance Limited on 23 December, 2010 Author: A.S.Pachhapure .1. Crl. P 7’02\/O3 IN THIS HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 23″‘ DAY OF IJECEMBER 2010 BEFO RE THE HON’BLE MRJUSTICE A.S.PACHI-{AE\u00a7URE’fI-=1: _ CRIMINAL PETITION NO.702\/2088 ffjy. V” BETWEEN 1. SMT. SATHYAVATHI PATTAEIRAMAAI, […]<\/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":[8,20],"tags":[],"class_list":["post-187924","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nSmt Sathyavathi Pattabiraman vs M\/S S N Finance Limited on 23 December, 2010 - Free Judgements of Supreme Court & 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\/smt-sathyavathi-pattabiraman-vs-ms-s-n-finance-limited-on-23-december-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Smt Sathyavathi Pattabiraman vs M\/S S N Finance Limited on 23 December, 2010 - 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