High Court of KeralaSingle Judge2022-10-19Writ petitions dismissed with liberty to raise ...

W.P.(C) Nos. 25456 and 25509 of 2007

Case / Petition Number:WP(C) Nos.25456 & 25509 OF 2007

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: P.V. Kunhikrishnan
Judgment Date: 2022-10-19
Court Decision / Holding: These writ petitions are dismissed with liberty to the petitioners and contesting respondents to raise all their contentions before the revisional Court. If the revisions filed by the complainant are allowed and the complaints restored, the petitioners may approach this Court again by filing a fresh writ petition.
Final Disposition: Writ petitions dismissed with liberty to raise contentions before revisional Court; fresh writ petition possible if revision restores the complaints.

Parties to the Case

Appellants / Petitioners

M/S.First Custodian Fund India Ltd.
MR.RAJENDRA KUMAR BANTHIA
MR.MANISH BANTHIA
MR.SURENDRA KUMAR BANTHIA
M/S.HARVESTDEAL SECURITIES LTD.
MR.SHRIKANT G.MANTRI

Respondents

Nedungadi Bank (now PNB)
The State of Kerala to be served through it Public Prosecutor, High Court of Kerala
The National Stock Exchange Ltd.
The Punjab National Bank
The Bombay Stock Exchange Ltd.

Legal Representation & Advocates

Counsels for Petitioners

• Sri. T.R. Harikumar

Counsels for Respondents

• Sri. K.P. Sudheer
• Sri. V.B. Unniraj
• Sri. R.S. Geetha
• Sri. P. Anitha

Case Synopsis & Summary

The two writ petitions challenge the proceedings in C.C. No.3/2003 and C.C. No.4/2003 on the file of the Judicial Magistrate First Class- I, Kozhikode. The petitions trace the earlier pursuit before the Bombay High Court to quash the proceedings, where the petition was dismissed (Ext.R1(a)); the Supreme Court also rejected the challenge, affirming the Court's lack of interfering jurisdiction. The Kerala High Court, by this judgment, recognises its own jurisdiction in light of the Supreme Court's order. It is argued on behalf of the petitioners that the learned Magistrate discharged the accused based on a Supreme Court judgment in Asian Resurfacing of Road Agency Pvt. Ltd. v. Central Bureau of Investigation (2018 (2) KLT 158). A revision is pending before this Court, with a delay condonation petition, and the petitioners contend that the writ prayers would be infructuous if the revision proceeds. The court ultimately dismisses the writ petitions with liberty to the petitioners and contesting respondents to raise all contentions before the revisional Court. It further states that if the revisions are allowed and the complaints restored, the petitioners may approach this Court again by filing a fresh writ petition. The Appendix lists several exhibits, including cognizance orders, policy documents, and RBI reports.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that these writ petitions seek quashing of criminal proceedings initiated in C.C. Nos. 3/2003 and 4/2003 before the JMFC Kozhikode and that the Bombay High Court’s dismissal, followed by the Supreme Court’s rejection, establishes this Court’s jurisdiction. They rely on the Supreme Court’s Asian Resurfacing decision (2018 (2) KLT 158), arguing that the Magistrate’s discharge based on that ruling is a correct legal position. They further submit that a revision is pending before this Court and that the prayers in the writ petitions would be infructuous if the revision proceeds without interference. They request that the writ petitions be allowed or at least kept in abeyance pending the outcome of the revisional proceedings.

Contentions of Respondents

The respondents contend that the writ petitions are within the jurisdictional reach of this Court and that dismissal with liberty to raise all contentions before the revisional Court is appropriate. They argue that the pending revision provides a proper remedy and that the petitioners cannot bypass the revisional process. They emphasize that the proceedings and their continuance would not be vitiated by the pending revision, and that the Court should permit the revision to determine the matter.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
Asian Resurfacing of Road Agency Pvt. Ltd. v. Central Bureau of Investigation	2018 (2) KLT 158	Mentioned Only	Cited by the petitioners to support discharge arguments, but the judgment ultimately proceeds by dismissing the writ petitions and directing revisional proceedings; the decision does not adopt or elaborate on the reasoning of the Asian Resurfacing decision.

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Extracted Judgment Text

Exact text extracted from official judgment records.

WP(C) Nos.25456 & 25509 OF 2007 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN** **WEDNESDAY, THE 19[TH] DAY OF OCTOBER 2022 / 27TH ASWINA, 1944** ## **WP(C) NO. 25456 OF 2007** **AGAINST THE ORDER/JUDGMENTCC 4/2003 OF JUDICIAL MAGISTRATE OF** ## **FIRST CLASS -I,KOZHIKODE** ## **PETITIONER/S:** 1 M/S.FIRST CUSTODIAN FUND INDIA LTD. HAVING ITS OFFICE AT SURYA MAHAL,, NAGINDAS MASTER ROAD, FORT, MUMBAI- 400 001,, REPRESENTED BY ITS DIRECTOR MANISH BANTHIA. 2 MR.RAJENDRA KUMAR BANTHIA M/S.HARVESTDEAL SECURITIES LTD.,, HAVING ITS OFFICE AT SURYA MAHAL,, NAGINDAS MASTER ROAD, FORT, MUMBAI400 001. 3 MR.MANISH BANTHIA DIRECTOR, M/S.FIRST CUSTODIAN FUND (I) LTD.,, HAVING ITS OFFICE AT SURYA MAHAL,, NAGINDAS MASTER ROAD, FORT, MUMBAI- 400 001. 4 MR.SURENDRA KUMAR BANTHIA DIRECTOR, M/S.FIRST CUSTODIAN FUND (I) LTD.,, HAVING ITS OFFICE AT SURYA MAHAL,, NAGINDAS MASTER ROAD, FORT, MUMBAI- 400 001. BY ADV SRI.T.R.HARIKUMAR ## **RESPONDENT/S:** 1 NEDUNGADI BANK (NOW PNB) NOW PUNJAB NATIONAL BANK,, SHATABDI BHAVAN, GOVINDAPURAM, KOZHIKODE. WP(C) Nos.25456 & 25509 OF 2007 2 2 THE STATE OF KERALA TO BE SERVED THROUGH IT PUBLIC PROSECUTOR, HIGH COURT OF KERALA. 3 THE NATIONAL STOCK EXCHANGE LTD. HAVING ITS OFFICE AT EXCHANGE PLAZA,, BANDRA KURLA COMPLEX, MUMBAI. 4 THE PUNJAB NATIONAL BANK REPRESENTED BY ITS ZONAL MANAGER, SHATABHDI BHAVAN, MINI BYEPASS ROAD, GOVINDAPURAM, KOZHIKODE-673016. BY ADV SRI.K.P.SUDHEER ## **OTHER PRESENT:** 0 SRI.K.M.FAISAL, GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.10.2022, ALONG WITH WP(C).25509/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.25456 & 25509 OF 2007 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN WEDNESDAY, THE 19[TH] DAY OF OCTOBER 2022 / 27TH ASWINA, 1944 WP(C) NO. 25509 OF 2007 AGAINST THE ORDER/JUDGMENTCC 3/2003 OF JUDICIAL MAGISTRATE OF FIRST CLASS -I,KOZHIKODE** ## **PETITIONER/S:** 1 M/S.HARVESTDEAL SECURITIES LTD. HAVING ITS OFFICE AT SURYA MAHAL,NAGINDAS MASTER ROAD, FORT, MUMBAI - 400 001. 2 MR.RAJENDRA KUMAR BANTHIA, DIRECTOR, HARVESTDEAL SECURITIES LTD, HAVING ITS OFFICE AT SURYA MAHAL, NAGINDAS MASTER ROAD, FORT, MUMBAI - 400 001. 3 MR.SHRIKANT G.MANTRI DIRECTOR, HAVING ITS OFFICE AT SURYA MAHAL, NAGINDAS, MASTER ROAD, FORT, MUMBAI - 400 001. BY ADV T.R.HARIKUMAR ## **RESPONDENT/S:** 1 THE NEDUNGADI BANK (NOW PUNJAB NATIONAL BANK), SHATABDI BHAVAN, GOVINDPURAM, KOZHIKODE. 2 THE STATE OF KERALA TO BE SERVED THROUGH ITS PUBLIC PROSECUTOR, HIGH COURT OF KERALA. 3 THE BOMBAY STOCK EXCHANGE LTD., HAVING ITS OFFICE AT DALAL STREET, MUMBAI - 400 001. WP(C) Nos.25456 & 25509 OF 2007 4 BY ADVS. K.P.SUDHEER V.B.UNNIRAJ R.S.GEETHA P.ANITHA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.10.2022, ALONG WITH WP(C).25456/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.25456 & 25509 OF 2007 5 ## **P.V.KUNHIKRISHNAN, J.** **-----------------------------W.P.(C).Nos. 25456 and 25509 of 2007 ---------------------------------------------Dated this the 19[th] day of October, 2022** ## **JUDGMENT** These two writ petitions are filed to quash the proceedings in C.C.No.3/2003 and C.C.No.4/2003 on the file of the Judicial Magistrate of First Class-I, Kozhikode. The petitioners earlier approached the Bombay High Court to quash the proceedings and the same was dismissed by the Bombay High Court as evident by Ext.R1(a) judgment. That judgment was challenged before the Apex Court and the same was rejected by the Apex Court also. A perusal of the Apex Court order will show that this Court is having jurisdiction in the matter. 2. Now it is submitted that the learned Magistrate discharged the petitioners subsequently based on the Supreme Court judgment in _**Asian Resurfacing of Road Agency Pvt.**_ WP(C) Nos.25456 & 25509 OF 2007 6 _**Ltd. v. Central Bureau of Investigation**_ [2018 (2) KLT 158]. It is submitted that a revision is pending before this Court against those orders with a delay condonation petition. If that is the case, the prayers in these writ petitions are infructuous. The petitioners and the contesting respondents in these writ petitions are free to raise all their contentions in the revision pending before this Court. 3. With liberty to the petitioners and the contesting respondents in these writ petitions to raise all their contentions before the revisional Court, these writ petitions are dismissed. In case the revisions filed by the complainant is allowed and the complaints are restored, the petitioners are at liberty to approach this Court again by filing a fresh writ petition. **SD/P.V.KUNHIKRISHNAN JUDGE** DM SKS WP(C) Nos.25456 & 25509 OF 2007 7 ## **APPENDIX OF WP(C) 25509/2007** PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE CRIMINAL COMPLAINT BEING C C NO.3 OF 2003 FILED BEFORE THE LD JMFC1, KOZHIKODE. Exhibit P2 TRUE COPY OF THE ORDER TAKING COGNIZANCE. Exhibit P3 TRUE COPY OF THE INVESTMENT POLICY OF THE BANK DATED 25.9.1999. Exhibit P4 TRUE COPY OF THE STATEMENTS OF DEMAT ACCOUNT OF THE BANK. Exhibit P5 TRUE COPY OF THE CONTACT NOTES. Exhibit P6 TRUE COPY OF THE STATEMENTS OF DEMAT ACCOUNT OF THE PETITIONERS. Exhibit P7 TRUE COPY OF THE TRADE LOGS OF BSE. Exhibit P8 TRUE COPY OF THE ORDER PASSED BY THE HON'BLE SUPREME COURT DATED 10.8.2007. Exhibit P9 TRUE COPY OF THE RELEVANT BYE LAWS OF BSE. Exhibit P10 TRUE COPY OF THE RELEVANT ANNEXURES OF THE RBI REPORT. EXHIBIT R1 A TRUE COPY OF THE JUDGMENT DATED 25/6/2007 IN CRIMINAL WRIT PETITION NUMBER 355 AND 356 OF 2003 ON THE FILE OF THE HONOURABLE HIGH COURT OF MUMBAI. WP(C) Nos.25456 & 25509 OF 2007 8 ## **APPENDIX OF WP(C) 25456/2007** RESPONDENT EXHIBITS EXHIBIT R1 A True copy of judgment dated 25/06/07 in criminal Writ Petition number 268 of 2003 on the file of the Honourable High Court of Mumbai. PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE CRIMINAL COMPLAINTBEING C C NO.4 OF 2003 FILED BEFORE THE LD JMFC-I, KOZHIKODE Exhibit P2 TRUE COPY OF THE ORDER TAKING COGNIZANCE. Exhibit P3 TRUE COPY OF THE INVESTMENT POLICY OF THE BANK DATED 26.09.1999 Exhibit P4 TRUE COPY OF THE STATEMENTS OF DEMAT ACCOUNT OF THE BANK Exhibit P5 TRUE COPY OF THE CONTACT NOTES Exhibit P6 TRUE COPY OF THE STATEMENTS OF DEMAT ACCOUNT OF THE PETITIONERS. Exhibit P7 TRUE COPY OF THE TRADE LOGS OF NSE Exhibit P8 TRUE COPY OF THE ORDER PASSED BY THE HON'BLE SUPREME COURT DATED 10.08.2007 Exhibit P9 TRUE COPY OF THE BYE LAWS OF NSE Exhibit P10 TRUE COPY OF THE RELEVANT ANNEXURE V OF THE RBI REPORT.