TaxTMI 
TaxTMI 
2014 (11) TMI 1252
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.... of a specified service with or without any benefit in the form of interest, bonus, profit, or in any other form, but ......................" The word 'financial establishment' is defined under Section 2 (c) of the Act of 2000 as under:- "(c) "Financial establishment" means an individual, an association of individuals or a firm or a company incorporated under the Companies Act, 1956 (1 of 1956) receiving deposits under any scheme or arrangement or in any other manner but does not include, a Corporation or a Co-operative Society owned or controlled by the State Government or the Central Government, or a Banking Company as defined under clause (c) of Section 5 of the Banking Regulation Act, 1949 (No.20 of 1949)" 2. Section 3 of the Act of 2000 provides that every financial establishment shall intimate about its business in the area of jurisdiction of competent authority and shall file a copy of each of such periodical statement to the competent authority as may be required to be filed under any law, with any other supervisory authority including Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI). The competent authority has a discretion to dire....
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....ct of 2000 provides for appeal against the order passed by the Special Judge before the High Court within thirty days from the date of the order with the condition of pre5 deposit, as provided for under sub-section (2) thereof. 8. Section 14 of the Act of 2000 provides that no Court shall have competence to grant anticipatory bail to any person under this Act notwithstanding provisions of Section 438 of the Code of Criminal Procedure, 1973. 9. To carry out the mandate contained in the aforesaid provisions, rules have also been framed in exercise of powers under sub-section (1) of Section 15 of the Act of 2000. 10. The scope of jurisdiction and interference under Section 482 of Cr.P.C. of this Court by now is well settled in catena of decisions of the Hon'ble Supreme Court. In the context of factual matrix in hand following judgments, in the opinion of this Court, are relevant for addressing the contentions raised by the learned counsel with due regard to the provisions of the Act of 2000:- 1. R. Kalyani Vs. Janak C. Mehta and others, (2009) 1 SCC 516. 2. Dalip Kaur and Others Vs. Jagnar Singh and another, (2009) 14 SCC 696. 3. Vijayander Kumar and others Vs. State of....
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....isdiction only when one or other propositions of law, as laid down in R. Kalyani (supra), is attracted. 13. In Vijayander Kumar (supra) the Hon'ble Supreme Court relying upon the aforesaid judgment, R. Kalyani (supra), has held as under:- para 12 and 13 "12. The learned counsel for the respondents is correct in contending that a given sent of facts may make out a civil wrong as also a criminal offence and only because a civil remedy may also be available to the informant/complainant that itself cannot be a ground to quash a criminal proceeding. The real test is whether the allegations in the complaint disclose a criminal offence or not. This proposition is supported by several judgments of this Court as noted in para 16 of the judgment in Ravindra Kumar Madhanlal Goenka v. Rugmini Ram Raghav Spinners (P) Ltd., (2009) 11 SCC 529 : (2010) 3 SCC (Cri) 1011. 13. On considering the facts of the present case it is found that the facts were properly noticed by the High Court on earlier occasion while examining the petition preferred by the appellants for quashing of FIR of this case. The same view has been reiterated by the High Court in the order under appeal for not interfering....
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....ns for which the Act of 2000 has been enacted, which in fact is to protect the deposits made by the public in the financial establishments and matters connected therewith or incidental thereto. 17. As there has been rise in complaints brought to the notice of State Government that certain financial establishments take deposits of money from public, but after sometime they run away without returning the deposits of public and there was no enactment to identify and take legal action against such financial establishments, who commit defaults in returning the deposits after maturity, therefore, in order to safeguard the interest of depositors, to identify the financial establishments and to compel them to return the money by taking legal proceeding the aforesaid Act of 2000 has been enacted, which provides for procedure not only for taking legal proceedings against the financial establishments, but also makes every person responsible for the management of affairs of such establishments. Special Courts have been incorporated to punish the persons responsible for the aforesaid defaults for a term which may extend to six years and also imposition of fine which shall not be less than Rs. ....
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.... is used is missing in agreement. F- Franchisee has to deposit the charges/payment collected within 24 working hours in company's bank account opened, operated by company and have to intimate by authorized e-mail ID. (Clause 9) (Emphasis supplied) G- Present rate of franchisee commission is 60% plus applicable service tax of the fee/service charges collected during the month subject minimum of Rs................. (Rupees................only) plus service tax per year payable to NPCL with in time limits to be mentioned beyond that 18% interest to be payable. (Clause 10) H- In case NPCL offers any product, NPCL will deduct 60% plus service tax of the product charges and balance will be paid to franchisee on receipt of payment from customer. (Clause 11) I- Product charge mean the entire amount received by the franchisee from customer. (Clause 12) (Emphasis supplied) J- If franchisee does not generate and/or do not remit to NPCL franchisee commission as indicated above for consecutive three months, NPCL has right to recover from security deposit. (Clause 14) K- Registration of customers shall be done in the NPCL application form for all customers on payment as prescri....
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....yment made to an author or inventor for each copy of a work or article sold under a copyright or patent. Royalties are often paid per item made, used, or sold, or per time elapsed. Likewise, various nature of royalties have been defined viz. Established royalty, Reasonable royalty- Oil and Gas, Haulage royalty, Landowner's royalty, Mineral royalty, Nonparticipating royalty, Overriding royalty, Shut-in-royalty and Royalty interest- Oil & gas. Definitions of all these terminologies lead to the understanding that royalty is an amount payable for use of any property by the user of the property. According to Joweitts' Dictionary of English Law, royalty means 'a payment reserved by the grantor of a patent, lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee'. In the case of State of Orissa v. Titaghur Paper Mills Co. Ltd., 1985 Supp SCC 280 similar is the meaning attributed to the word 'royalty'. In the case of Continental Construction Ltd. v. CIT, 1992 Supp (2) SCC 567 the Supreme Court held that 'royalty' is generally a consideration paid to the owner of a right or asset such as copyright, patent righ....
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....paid on fixed deposit, has also not been paid. Further, despite having promised to refund the fix deposit, the same has not been refunded. One cheque No.205870 of the amount of Rs. 1,07,000/- dated 14/2/2011, Axis Bank, was issued by the applicant in favour of complainant, however, on presenting the aforesaid cheque, account No.158010100139359, the same was returned back on 15/2/2011 with the note that there is no sufficient fund in the account. It is, therefore, alleged that the complainant has been cheated by fraudulent means by the applicant and, therefore, the case be registered against the applicant for having not refunded deposit with interest. It appears that the aforesaid complaint was presented before the Superintendent of Police, Gwalior and on his orders the FIR was registered by the In-charge Station House Officer, Thatipur, which is under investigation. 25. While investigation is in progress and the applicant remained absconding, he has filed the instant petition under Section 482 of the Code of Criminal Procedure seeking quashment of the FIR on the ground that on the face of the FIR no offence is made out against any Act much less the Act of 2000. The applicant in hi....
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....d by the applicant. Be that as it may. Documents relied and filed by either parties shall be critically evaluated to reach a logical conclusion by the investigating agency. This Court is not seizen with the matter to explore, investigate and take decision on the question of saddling of civil and criminal liabilities on parties on appreciation of evidence on record. 26. The Court has noticed various clauses of the agreement executed by the parties only to ascertain the nature of activities of the applicant's company with due advertence to what has been averred in the petition. Various clauses of the agreement do not suggest that the company is a mere financial consultant, as claimed in the petition. Allegations have been made by the complainant in the FIR that under the garb of aforesaid franchisee agreement the applicant has fraudulently taken deposit of Rs. 2.5 Lakh as franchisee royalty and Rs. Two Lakh towards expenses and Rs. One Lakh as security deposit through cheques and cash with the assurance of 40% dividend. Since applicant/company has failed to repay and the cheque issued in favour of respondent/complainant by the applicant's company was dishonoured with the com....