AI Drafter 
TaxTMI 
TaxTMI 
2025 (4) TMI 524
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....eedings in C.C. No. 10 of 2019 on the file of the IV Additional District Judge-cum-II Additional Metropolitan Sessions Judge-cum- the Special Judge for trial of Economic Offences at Visakhapatnam, registered for the offences punishable under Section 76A of the Companies Act, 2013 for violation of Section 73 of the Companies Act 2013 read with Companies (Acceptance of Deposit) Rules, 2014. 3) C.C. No. 9 of 2019 was registered against M/s. Kapil Infra Avenues Private Limited and others and C.C. No. 10 of 2019 was registered against M/s. Ramya Constructions Limited and others, but the complainant and allegations made against the petitioners in both the cases are one and the same in both the cases. 4) As the complainant, the allegations made therein and the point involved in both the cases is one and the same, I find that it is expedient to decide both the petitions by common order taking Criminal Petition No. 2762 of 2019 as leading petition. 5) The Registrar of Companies lodged complaint against the petitioners herein on the basis of the complaint received by him from one Guruzala Venkateswara Rao, defacto complainant, on various dates, alleging that in the course of the rea....
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....on was ordered, thereafter, inspecting officers have inspected the records of petitioner No. 1 company and submitted a report dated 14.08.2018 to the Government of India, Ministry of Corporate Affairs. The gist of the report is that the company has been collecting money as advance for sale of property during the financial years 2014-15, 2015-16 and 2016-17 and has been paying interest for such deposits and refunding the money with interest at the end of the period within which period the land should be registered or when the parties demand refund at the optional dates mentioned in the MoU. Further, the inspection report revealed that the company has been accepting the above amounts from public by receiving applications through agents engaged by the company, which are shown as advance for the sale of property being a percentage of standard selling rate fixed by the board from time to time (with condition that the balance amount is payable within a specified period) with advance optional interest rate to be payable on monthly or on cumulative basis till the actual registration of the land or till the amount is refunded. From the scrutiny of some of the applications verified during th....
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....n received by it with interest, to only those persons, who have failed to pay the balance sale consideration, within the period agreed for payment of the second and final instalment, as per the terms of the agreement. 10) He further submits that a perusal of the complaint reflects that the allegation against the petitioners is that the amounts are being collected without an intention to sell the property, but the defacto complaint has no cogent facts or evidence to prove the said allegation and for this reason, the complaint is liable to be quashed as the same is without any basis and that the defacto complainant has further noted that the transactions were concluded in respect of certain transactions where money was received in full. He also submits that the Registrar of Companies has acted on whimsical complaints of one Gurazala Venkateswarlu, who had foisted many complaints against the petitioners, and filed many Writ Petitions before this Court, without any basis. He further submits that Rule (2) (1) (c) (xii) (b) of the Companies (Acceptance of Deposits) Rules, 2014 makes it clear that the amounts received as advance by the petitioners cannot be deemed to be a "deposit" and....
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....itional Metropolitan Sessions Judge-cum-the Special Judge for trial of Economic Offences at Visakhapatnam are liable to be quashed by exercising jurisdiction under Section 482 of Cr.P.C.?" POINT: 14) The petitioners filed the present petitions under Section 482 of Cr.P.C. 15) Section 482 of Cr.P.C saves the inherent powers of the High Court to make such orders as may be necessary to give effect to any order under the Code or to prevent abuse of the process of any Court or otherwise to secure the ends of justice. It is an obvious proposition that when a Court has authority to make an order, it must have also power to carry that order into effect. If an order can lawfully be made, it must be carried out; otherwise it would be useless to make it. The authority of the Court exists for the advancement of justice, and if any attempt is made to abuse that authority so as to produce injustice, the Court must have power to prevent that abuse. In the absence of such power the administration of law would fail to serve the purpose for which alone the Court exists, namely to promote justice and to prevent injustice. Section 482 of Cr.P.C confers no new powers but merely safeguards exis....
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....lice officers under Section 156 (1) of the Code except under an order of a Magistrate within the purview of Section 155 (2) of the Code. (3) Where the allegations made in the FIR or complaint and the evidence collected in support of the same do not disclose the commission of any offence and make out a case against the accused. (4) Where, the allegations in the FIR do not constitute a cognizable offence but constitute only a non-cognizable offence, no investigation is permitted by a police officer without an order of a Magistrate as contemplated under Section 155 (2) of the Code. (5) Where the allegations made in the FIR or complaint are so absurd and inherently improbable on the basis of which no prudent person can ever reach a just conclusion that there is sufficient ground for proceeding against the accused. (6) Where there is an express legal bar engrafted in any of the provisions of the Code or the concerned Act (under which a criminal proceeding is instituted) to the institution and continuance of the proceedings and/or where there is a specific provision in the Code or the concerned Act, providing efficacious redress for the grievance of th....
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....ad been recovered during the raids, the petitioner got motivated once again, commenced war against the respondents and has come up with the present writ petition. But, as we have pointed out earlier, the writ Court is not intended for people to settle private scores. The war launched by the petitioner has gone unabated from the year 2011 for the past six years. Every Court has taken a lenient view, even while dismissing the writ petitions of the petitioner, which has perhaps emboldened him to again and again make an attempt through this Court to settle a private dispute that he has. Therefore, we are of the considered view that it is high time that the abuse of process of Court is put an end to by imposing costs. Hence, the Writ Petition is dismissed. The petitioner shall pay costs of Rs. 50,000/- to the High Court Legal Services Committee, within a period of eight (8) weeks from today." 21) Therefore, I find considerable force in the contention of the petitioners that the said Guruzala Venkateswara Rao foisted many false complaints against the petitioners in order to settle his personal scores with petitioners herein and the other group of companies. Further, the said Guruzala ....
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....ot have necessary permission or approval wherever required, to deal in the goods or properties or services for which the money is taken, then the amount received shall be deemed to be a deposit under the respective rules. Further, as per the explanation to the Rule 2, the amount referred in the first proviso shall be deemed to be deposits on the expiry of 15 days from the date they become due for refund. 25) Admittedly, petitioners - companies had purchased the agricultural land and after obtaining the permission from the competent authorities for conversion of agricultural land into non-agricultural land, have obtained permission for development of the said land duly converting into layout of plots for residential/commercial housing. To unlock the funds invested in development of the lay outs etc., petitioners had offered to sell the land in its possession and for this purpose entered into written agreement/arrangement. By virtue of proviso to Rule 2 (1) (c) (xii) (b) of the Companies (Acceptance of Deposits) Rules, 2014, the advances received by the petitioners for sale of immovable property are exempted from the purview of the deposits. However, the said issue has already bee....