Deposit protection law applies to entities carrying on deposit business; later complaints need not always be separate FIRs.
The Madras High Court noted that police powers to register and investigate offences under the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act, 1997 arise from the police law framework and the Code of Criminal Procedure, while the Government's Economic Offences Wing functions as an administrative arrangement for effective investigation. It construed "financial establishment" as covering only entities carrying on the business of receiving deposits, not every company that merely accepts deposits incidentally, and recognised the Act's overriding effect over inconsistent laws. It also applied the rule against multiple FIRs only where there is sameness of occurrence, accepting later complaints based on different depositors and transactions while directing that further complaints be treated as statements rather than fresh FIRs.
Issues: (i) Whether the Economic Offences Wing and the police had power to register and investigate offences under the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act, 1997 against incorporated companies, and whether the Act applied only to entities carrying on the business of receiving deposits; (ii) Whether the subsequent FIRs were impermissible as a second FIR on the same occurrence.
Issue (i): Whether the Economic Offences Wing and the police had power to register and investigate offences under the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act, 1997 against incorporated companies, and whether the Act applied only to entities carrying on the business of receiving deposits.
Analysis: The stay granted by the Supreme Court in an earlier matter was held to be confined to that case and not a general stay on the declaration of law. The police power to investigate was traced to the police enactments and the Code of Criminal Procedure, while the special wing created by the Government was treated as only an administrative arrangement for effective investigation. On the scope of the Act, the definition of "financial establishment" was read as covering only entities that carry on the business of receiving deposits, and not every company that merely accepts deposits in the course of its ordinary business. The Court also held that the Act overrides inconsistent laws, and that companies engaged in the business of receiving deposits may fall within its fold.
Conclusion: The police and the Economic Offences Wing were competent to investigate, and the Act was held applicable to companies that carry on the business of receiving deposits.
Issue (ii): Whether the subsequent FIRs were impermissible as a second FIR on the same occurrence.
Analysis: The Court applied the principle against multiple FIRs only where there is sameness of occurrence. It accepted the explanation that the complaints arose from different depositors and different transactions, and held that the later FIR could be sustained. At the same time, it directed the police not to register fresh FIRs on every subsequent complaint and to treat further complaints as statements under the Code of Criminal Procedure.
Conclusion: The challenge based on a second FIR was rejected.
Final Conclusion: The writ petitions were dismissed, while the investigation was allowed to continue with the direction that further complaints be treated as statements and no fresh FIR be registered for each complaint.
Ratio Decidendi: An interim stay in one case does not suspend the general operation of the legal principle declared there, and a special statute against deposit defaults applies only to entities carrying on the business of receiving deposits, not to every company that merely receives deposits incidentally.
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