V.P. Nandakumar v. P.K. Sagar and State of Kerala

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** **THE HONOURABLE DR. JUSTICE KAUSER EDAPPAGATH THURSDAY, THE 15[TH] DAY OF JUNE 2023 / 25TH JYAISHTA, 1945 CRL.MC NO. 4436 OF 2022** **(CRIME NO. 376/2022 OF VALAPPAD POLICE STATION, THRISSUR DISTRICT)** ## **PETITIONER/ACCUSED:** V.P.NANDAKUMAR AGED 67 YEARS, S/O. PADMANABHAN, MANAGING DIRECTOR AND CEO, MANAPPURAM FINANCE LIMITED, MANAPPURAM HOUSE, VALAPPAD, THRISSUR DISTRICT, PIN - 680702 BY ADVS. NIKITA J. MENDEZ P.M.RAFIQ(K/45/2001) M.REVIKRISHNAN(K/1268/2004) AJEESH K.SASI(K/166/2006) SRUTHY N. BHAT(K/000579/2017) RAHUL SUNIL(K/000608/2017) SRUTHY K.K(K/117/2015) P.VIJAYA BHANU (SR.)(K/421/1984) ## **RESPONDENTS/ DEFACTO COMPLAINANT & STATE:** 1 P.K.SAGAR AGED 50 YEARS, S/O. P.A. KUNJUMAMAN, POYYARA HOUSE, KATTOOR (P.O), MUKUNDAPURAM, THRISSUR DISTRICT, PIN - 680702 2 STATE OF KERALA REPRESENTED BY THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM, KOCHI, PIN - 682031 **CRL.MC NO. 4436/2022** -:2:- BY ADVS. M.T.SURESHKUMAR PUBLIC PROSECUTOR SHRI.R.RANJITH,SC,KOOVAPPADY GRAMA PANCH SMITHA PHILIPOSE P.R.JAYASANKAR MANJUSHA K SREELAKSHMI SABU DARSAN SOMANATH SMT S REKHA SR PP ADV VIJAYABHANU SR **THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON 15.06.2023, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:** **CRL.MC NO. 4436/2022** -:3:- ## O R D E R Dated this the 15th day of June, 2023 This Crl.M.C has been filed to quash all further proceedings pursuant to Annexure-3 F.I.R. in Crime No. 376/2022 of Valappad Police Station, Thrissur District. 2. The petitioner is the accused. The respondent No.1 is the defacto complainant. The offences alleged against the petitioner are punishable under Section 420 of the IPC. The prosecution case in short is as follows: The respondent No.1 is a shareholder of Malappuram Finance Ltd. During the years 20102012, the petitioner formed a proprietary concern by name Manappuram Agro Farms and in order to commit criminal breach of trust, he collected nearly Rs.150 crores from the public. When the Reserve Bank of India interdicted the company from doing such business, the petitioner returned nearly Rs.20 crores back to the distributors. According to the respondent No.1, Manappuram Agro Farms was not permitted to accept deposits from the public. The petitioner has illegally collected those deposits only for undue pecuniary advantage. **CRL.MC NO. 4436/2022** -:4:- 3. I have heard Sri.P.Vijaya Bhanu, the learned Senior Counsel for the petitioner and Sri.M.T.Suresh Kumar, the learned Counsel for the respondent No.1 as well as Smt.S.Rekha, the learned Senior Public Prosecutor. 4. The crime was registered pursuant to a private complaint filed by respondent No.1 herein at the Judicial First Class Magistrate Court, Kodungallur (for short, 'the court below') as C.M.P.No.4374/2022. The learned Magistrate forwarded the complaint to the police for investigation under Section 156(3) of Cr.P.C and it was thereafter crime was registered. The investigation was taken over by ISHO, Valappad Police Station. After conducting the investigation, he submitted a negative final report at the court below. Thereafter, respondent No.1 herein filed C.M.P.No.548/2023 at the court below against the final report contending that it was filed without making a proper investigation. However, the learned Magistrate accepted the final report over-ruling the objection submitted by the petitioner. Then, respondent No.1 approached this Court by filing Crl.M.C.No. 3429/2023. This Court as per the order dated 25/04/2023 set aside the order passed by the learned Magistrate accepting the **CRL.MC NO. 4436/2022** -:5:- final report and directed the learned Magistrate to take a fresh decision as to whether a refer charge is to be accepted or not, after considering the objections raised by the respondent. Thereafter, the learned Magistrate passed an order dated 17/05/2023 and the refer report was returned to Dy.S.P., Kodungallur to conduct a proper investigation and complete the investigation as expeditiously as possible. 5. The learned Senior Counsel for the petitioner as well as the learned counsel for respondent No.1 now submitted that the entire dispute between the petitioner and the respondent No.1 has been amicably settled and the respondent No.1 does not want to proceed with the case further. An affidavit sworn in by the respondent No.1 has been produced. In the affidavit, he clearly stated that the dispute has been settled and he does not want to proceed with the case further. The statement of respondent No.1 has also been recorded by the Deputy Superintendent of Police, Kodungallur. In the statement he stated that he has no direct knowledge about the averments he made in the private complaint and he does not have any documents to prove the same. He has also stated that he does **CRL.MC NO. 4436/2022** -:6:- not want to proceed with the case further. A report has been submitted by the present investigating officer, who is the Deputy Superintendent of Police, Kodungallur Sub Division. In the said report it is stated that after he took over the investigation, again he recorded the statement of respondent No.1, in which he stated that he doesn't have any direct knowledge about the facts stated in the F.I. Statement, he does not have any evidence to prove the allegations and he is not interested to continue with the case. Since the crime has been registered on the basis of a private complaint filed by the respondent No.1 who now states that the entire matter has been settled and has no direct knowledge about the facts stated in the F.I. Statement and there is no materials to substantiate his allegations, I am of the view that no useful purpose will be served in continuing with the proceedings. 6. The Apex Court in _**Gian Singh v. State of Punjab**_ [2012 (4) KLT 108 (SC)], _**Narinder Singh and Others v. State of Punjab and Others**_ [(2014) 6 SCC 466] and in _**State of Madhya Pradesh v. Laxmi Narayan and Others**_ [(2019) 5 SCC 688] has held that the High Court by invoking S.482 of Cr.P.C **CRL.MC NO. 4436/2022** -:7:- can quash criminal proceedings in relation to non compoundable offence where the parties have settled the matter between themselves notwithstanding the bar under S.320 of Cr.P.C. if it is warranted in the given facts and circumstances of the case or to ensure the ends of justice or to prevent abuse of process of any Court. 7. The dispute in the above case is purely personal in nature. No public interest or harmony will be adversely affected by quashing the proceedings pursuant to Annexure-3. The offence in question do not fall within the category of offences prohibited for compounding in terms of the pronouncement of the Apex Court in _**Gian Singh**_ (supra), _**Narinder Singh**_ (supra) and _**Laxmi Narayan**_ (supra). For the reasons stated above, I am of the view that no purpose will be served in proceeding with the matter any further. Accordingly, the Crl.M.C. is allowed. Annexure-3 F.I.R. in Crime No. 376/2022 of Valappad Police Station, Thrissur District hereby stands quashed. Sd/- ## **DR. KAUSER EDAPPAGATH JUDGE** APA **CRL.MC NO. 4436/2022** -:8:- ## **APPENDIX OF CRL.MC 4436/2022** ## **PETITIONER'S ANNEXURES** Annexure- 1 CERTIFIED COPY OF THE COMPLAINT FILED BY THE 1ST RESPONDENT BEFORE THE JUDICIAL FIRST CLASS MAGISTRATE COURT, KODUNGALLUR DATED 11.05.2022. Annexure -2 TRUE COPY OF THE ORDER DATED 21.05.2022 PASSED BY THE JUDICIAL FIRST CLASS MAGISTRATE COURT, KODUNGALLUR IN CMP NO. 4374/2022. Annexure -3 TRUE COPY OF THE FIRST INFORMATION REPORT DATED 24.05.2022. Annexure -4 TRUE COPY OF THE COMPLAINT DATED 21.07.2011. Annexure-5 TRUE COPY OF THE ORDER PASSED BY THIS HON'BLE COURT IN CRL.M.C NO. 764/2014 DATED 18.08.2017. Annexure-6 TRUE COPY OF THE ORDER PASSED BY THIS HON'BLE COURT IN CRL.M.C.NO.733 OF 2014 DATED 19.10.2017. Annexure -7 TRUE COPY OF THE LETTER DATED 01.01.2015. Annexure -8 TRUE COPY OF THE JUDGMENT PASSED BY THIS HON'BLE COURT IN W.P (C) NO. 35024/2019 DATED 8.01.2021. Annexure -9 TRUE COPY OF W.P. (C) NO. 12387/2021 WITHOUT EXHIBITS ON THE FILES OF THIS HON'BLE COURT. ## **CRL.MC NO. 4436/2022** ## -:9:- Annexure -10 TRUE COPY OF THE COUNTER AFFIDAVIT WITHOUT EXHIBITS IN W.P. (C) NO. 12387/2021 DATED 15.01.2022. Annexure 11 TRUE COPY OF THE FINAL REPORT DATED 1901-2023 IN CRIME NO. 376/2022 OF VALAPPAD POLICE STATION, THRISSUR DISTRICT Annexure 12 TRUE COPY OF THE ORDER DATED 17-052023, IN CMP NO. 548/2023 IN RC NO. 34/2023 OF THE COURT OF THE JUDICIAL FIRST CLASS MAGISTRATE - I, KODUNGALLUR