High Court · 2022

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.01.2022CORAMTHE HONOURABLE MR.JUSTICE M.NIRMAL KUMARCRL.O.P.NO.539 OF 20221.P.K.Ramesh2.Maria Ramesh ... Petitioners/Accused 1 & 2Vs.1. State by; Inspector of Police, Team V, Central Crime Branch, Forgery Wing, Vepery, Chennai.... 1st Respondent/Complainant2. Sreedhar Narayanan, Executive Director, M/s.Annai Builders Real Estate Pvt Ltd., Alpha Centre, 4th Floor, No.150 and No.151, North Usman Road, T.Nagar, Chennai-600 017.... 2nd Respondent/Defacto ComplainantPRAYER: Criminal Original Petition is filed under Section 482 ofthe Code of Criminal Procedure, to call for the records and maybe pleased to quash the FIR in Crime No.126 of 2021, pendinginvestigation, on the file of the Inspector of Police, CCB, TeamV, Forgery Wing, Vepery, Chennai.For Petitioner: Mr.N.R.Elango, Senior Counsel forMr.Ganesh RajanFor R1:Mr.E.Raj Thilak,Additional Public ProsecutorFor R2:Mr.Mohamed RafiORDERThis Criminal Original Petition has been filed by thepetitioners/A1 & A2 to quash the FIR in Crime No.126 of 2021, onthe file of the 1st respondent in view of the compromise arrivedbetween the parties. https://hcservices.ecourts.gov.in/hcservices/

2.The gist of the case is that the petitioners are A1 andA2. A3 is their son, now he is in Australia and he is theDirector of M/s.Call Express Constructions Private Limited.During the end of the year 2017, the 2nd respondent wasintroduced to the petitioners as builder and promoter. Afterfew meetings, the petitioners informed that they owned 6 acresof land in Perumbakkam village, which could be developed intoresidential complexes and further they represented that they arecarrying on huge projects in OMR called 'USHERA'. Thepetitioners informed that the 2nd respondent to invest money todevelop the said project and it was agreed that the land will bewith the petitioners and the construction and marketing would beundertaken by the 2nd respondent. The profit sharing was alsodecided to be in the ratio of 70:30. The 1st petitioner informedthat even though Perumbakkam property is encumbered with LICHFL(LIC Housing Finance Limited), the whole project will becompleted in six months or he will pay LICHFL and clear theproperty to proceed further without any encumbrance. The 2ndrespondent believed the same, entered into a Joint DevelopmentAgreement on 12.07.2018 with the petitioners and a power ofattorney was also executed. In furtherance to it, totallyRs.18.50/- Crores was transferred to the petitioners by the 2ndrespondent. After transfer of money, the attitude of thepetitioners changed and they failed to take steps to getplanning permission and they have not even paid the LICHFL toclear Perumbakkam property from encumbrance. For default andnon payment, LICHFL was contemplating steps to bring theproperty for auction. Later, it came to know that thepetitioners indulged in similar activities and received twentyfive Crores by making same fraudulent promise to one AshokSachdev. The said Ashok Sachdev initiated criminal proceedingsagainst the petitioners. Hence, the 2nd respondent lodged acomplaint before the 1st respondent Police and an FIR in CrimeNo.126 of 2021, for offence under Sections 420, 465, 468, 409,34 and 108 IPC was registered. 3.The learned Senior Counsel appearing for the petitionerssubmitted that in this case, the 1st petitioner was arrested andlater enlarged on bail by the learned Principal Sessions Judge,Chennai in Crl.M.P.No.11701 of 2021, dated 26.07.2021, with acondition that the 1st petitioner to deposit a sum of Rs.2 Croresto the credit of Crime No.126 of 2021, before the learnedMetropolitan Magistrate, CCB and CBCID Case, Egmore, Chennai.As per the order, on 28.07.2021 vide receipt No.00631, thepetitioner deposited Rs.2 Crores by way of two demand draftseach for Rs.75,00,000/- and one demand draft for Rs.50,00,000/-.He further submitted that during investigation, the 2ndrespondent initiated arbitration proceedings in O.A.No.45 of2022, wherein the Former Hon'ble Chief Justice of Jammu and https://hcservices.ecourts.gov.in/hcservices/ Kashmir was appointed as sole arbitrator. In the arbitrationproceedings, a compromise was entered between the parties andMemorandum of Understanding, dated 17.11.2021 was executed tothat effect and a letter, dated 16.11.2021 addressed to the SubRegistrar, Selaiyur, Bharath Madha Street, Tambaram East,Chennai and a letter, dated 17.11.2021 addressed to the 1strespondent Police along with the memo of settlement. Thus, theclaim and counter claim of the parties got resolved in thearbitration proceedings.4.The learned Senior Counsel further submitted that therelationship between the petitioner and the 2nd respondent nowrestored with peace and harmony. In the Memorandum ofUnderstanding, dated 17.11.2021, it is seen that the case at theinstance of said Ashok Sachdev got registered in Crime No.253 of2019, after enquiry, it was closed by the Central Crime Branch,Chennai finding that it is a civil dispute. Further, AshokSachdev approached NCLT, which got dismissed and the proceedingsare currently pending before the NCLAT. Apart from that some ofthe home buyers of USHERA have preferred a complaint before theEOW, Delhi. Further, LICHFL on 20.11.2021 had issued a noticeunder Section 13(2) of the SARFAESI Act to the petitioners. Thelearned Senior Counsel further submitted that initially aMemorandum of Compromise was entered between the parties on26.07.2021. Following the same, another Memorandum ofUnderstanding was entered on 17.11.2021. As per the Memorandumof Understanding, the petitioners agreed to return the InterestFree Deposit amount of Rs.15.92/- Crores paid by the 2ndrespondent under Joint Development Agreement, dated 12.07.2018.A part of the amount, which was already repaid is recorded. Thebalance amount of Rs.7.92/- Crores to be paid within one yearfrom the date of quashing of Crime No.126 of 2021. It wasagreed by the 2nd respondent that he will not further pursue thecomplaint and will not initiate any civil or criminalproceedings subject to the conditions in the Memorandum ofUnderstanding. Further, it was agreed by the 2nd respondent fordefreezing the bank accounts of the petitioners (1.Indian Bank-Current Account No.712270990 – M/s.Call Express Construction(India) Private Limited, 2.Indian Bank – Savings AccountNo.413091739 – Dr.Maria Ramesh, 3.Indian Bank – Savings AccountNo.413094843 – Mr.P.K.Ramesh, 4.Indian Bank – Current AccountNo,712268198 – M/s.Call Express Engineering Private Limited,5.Axis Bank – Current Account No.912020049726280 – M/s.CallExpress Constructions (India) Private Limited.) and also agreedfor the petitioners to receive back the amount of Rs.2/- Crores,which is deposited by the 1st petitioner, as per the bail orderin Crl.M.P.No.11701 of 2021, dated 26.07.2021. https://hcservices.ecourts.gov.in/hcservices/

5.The learned Senior Counsel further submitted that the LookOut Circular issued against the petitioners forbidding themovements of the petitioners to be quashed. Thus, in view ofthe compromise, all the issues between the petitioners and the2nd respondent got resolved, hence, he prayed for quashing of FIRin Crime No.126 of 2021 and all the corollary issues initiatedpursuant to the FIR.6.The learned counsel for the 2nd respondent confirmed thecompromise entered between the petitioners and the 2ndrespondent. He further submitted that following the Memorandumof Understanding dated 17.11.2021, another Memorandum ofUnderstanding entered on 25.12.2021 between the petitioners andone Sreedhar. As per MOU, dated 25.12.2021, the petitioners tomake arrangements to refund the amount of Rs.5.35/- Crores andexecute sale deed for flats B3 and C3 in USHERA project withcorresponding UDS. He further submitted that the petitioners tostrictly abide by the conditions in the Memorandum ofUnderstanding, without any delay and deviation.7.The learned Additional Public Prosecutor appearing for the1st respondent Police submitted that on the complaint of the 2ndrespondent, an FIR in Crime No.126 of 2021 registered againstthe petitioners/A1 & A2 and their son A3, who is presently inAustralia. After registration of FIR, the petitioners werearrested and remanded to Judicial custody. Thereafter, the 1stpetitioner was granted bail by the learned Principal SessionsJudge, Chennai, by order, dated 28.07.2021 with a condition todeposit a sum of Rs.2/- Crores to the credit of Crime No.126 of2021. As per the order, the 1st petitioner deposited the amountin Crime No.126 of 2021, on the file of the MetropolitanMagistrate Court, CCB/CBCID, Egmore, Chennai, vide receiptNo.00631. He further submitted that the Deputy Commissioner ofPolice, Central Crime Branch-II, Vepery Chennai on 15.06.2021 inR.C.No.69/CCB/Camp/2021 had sent a communication to theAssistant Director/SIC, R.K.Puram, New Delhi to issue Look OutCircular against the petitioners and their son and forbid theirmovement vide Passport Nos.Z2382902, Z2382903 and Z2382901.8.The learned Additional Public Prosecutor further submittedthat on 17.11.2021, a settlement was entered between theparties and the same informed to the 1st respondent Police. The2nd respondent confirmed that he is not interested in furtherpursuing the FIR in Crime No.126 of 2021 and he is willing towithdraw the same. Further, the bank account of the petitioners(1.Indian Bank-Current Account No.712270990 – M/s.Call ExpressConstruction (India) Private Limited, 2.Indian Bank – SavingsAccount No.413091739 – Dr.Maria Ramesh, 3.Indian Bank – SavingsAccount No.413094843 – Mr.P.K.Ramesh, 4.Indian Bank – Current https://hcservices.ecourts.gov.in/hcservices/ Account No,712268198 – M/s.Call Express Engineering PrivateLimited, 5.Axis Bank – Current Account No.912020049726280 –M/s.Call Express Constructions (India) Private Limited.) werefreezed during investigation.9.This Court considered the rival submissions and perusedthe materials available on record.10.The issue between the parties is a business transaction.As per the Joint Development Agreement, the petitioners todevelop the property in Perumbakkam Village into residentialflats in the name of USHERA. For the property, a loan wasobtained from the LICHFL by the 2nd respondent, which gotencumbered. On the strength of the Joint Development Agreementon 12.07.2018, huge amount was transferred by the 2nd respondentand thereafter, some misunderstanding arouse between the partiesin implementation of the agreement. The 2nd respondent feltcheated, since after the original Memorandum of Understanding,subsequent Memorandum of Understanding was executed whichcompletely diluted the powers and rights of the 2nd respondent.The 2nd respondent was later relegated to a nominal party. Thishappened after transfer of huge sums of money. Thereafter, thepetitioners not shown interest in implementing the JointDevelopment Agreement to proceed with the progress of theproject. The LICHFL loan was not discharged and CMDA approvalwas not obtained and there was considerable delay. Hence, the2nd respondent lodged a complaint before the 1st respondentPolice. After registration of FIR in Crime No.126 of 2021,arbitration proceedings was initiated by the 2nd respondent,wherein Memorandum of Understanding entered between the partiesand recorded. Now, the issues got resolved on the satisfactionof the parties. The 2nd respondent agreed to withdraw thecomplaint against the petitioners and gave withdrawal letter andreiterated the same by filing affidavit before the 1st respondentPolice. The 1st respondent Police verified the identity of theparties and also verified the compromise arrived between them.11.Under such circumstances, no useful purpose will beserved in keeping the First Information Report pending, eventhough, the offences involved are not compoundable in nature.In the light of the guidelines given by the Hon'ble SupremeCourt reported in 2017 9 SCC 641-(Parbathbhai Aahir @Parbathbhai Vs. State of Gujrath), and after exercising duecaution as advised by the Hon'ble Suprme Court in The State ofMadhya Pradesh v. Dhruv Gurjar and Another reported in (2019) 2MLJ Crl 10), this Court in exercise of its jurisdiction underSection 482 Cr.P.C., quashes the First Information Report inCrime No.126 of 2021, on the file of the 1st respondent Policeand all the corollary issues between the parties pursuant to theCrime No.126 of 2021. https://hcservices.ecourts.gov.in/hcservices/

12.The amount of Rs.2/- Crores which is deposited by the 1stpetitioner to the credit of Crime No.126 of 2021, on the file ofthe Metropolitan Magistrate, CCB CBCID Court, Egmore, Chennai ishereby directed to be returned to the 1st petitioner, on filingof appropriate petition by the 1st petitioner. The 2nd respondenthas not objection for the same.13.The prohibitory orders passed by the 1st respondentPolice to freeze the bank accounts viz., 1.Indian Bank-CurrentAccount No.712270990 – M/s.Call Express Construction (India)Private Limited, 2.Indian Bank – Savings Account No.413091739 –Dr.Maria Ramesh, 3.Indian Bank – Savings Account No.413094843 –Mr.P.K.Ramesh, 4.Indian Bank – Current Account No,712268198 –M/s.Call Express Engineering Private Limited, 5.Axis Bank –Current Account No.912020049726280 – M/s.Call ExpressConstructions (India) Private Limited, is hereby quashed. Theconcerned Bank Managers are directed to defreeze the above saidbank accounts and not impose any restriction and permit thepetitioners to have free transactions.14.Since the FIR in Crime No.126 of 2021 itself is quashed,this Court quashes the Look Out Circular issued against thepetitioners/A1 & A2 and A3 (Passport Nos.Z2382902, Z2382903 andZ2382901). The petitioner to have unhindered access to travel,without any restrainment.15.This Criminal Original Petition is allowed, accordingly.The learned Senior Counsel submitted that the petitioner isvoluntarily willing to donate a sum of Rs.2,50,000/- (Rupees twolakhs fifty thousand only) to the Madras Advocate CooperativeSociety Limited, Madras for the welfare of its members. Hence,the petitioners are directed to donate Rs.2,50,000/- (Rupeestwo lakhs fifty thousand only) to the credit of of the MadrasAdvocate Cooperative Society Limited, Madras in AccountNo.484022647, Indian Bank, Madras High Court Branch, Madras. Sd/- Assistant Registrar(CS-IV)//True Copy// Sub Assistant Registrarvv2To1. The Inspector of Police, Team V, Central Crime Branch, Forgery Wing, Vepery, Chennai. https://hcservices.ecourts.gov.in/hcservices/

2. The Public Prosecutor, High Court, Madras.3. The Secretary, Madras Advocate Cooperative Society Ltd., Madras. Copy ToThe Metropolitan Magistrate Court, CCB/CBCID, Egmore, Chennai. +3ccs to M/s.Ganesh Rajan, Advocate, S.R.No.3742Crl.O.P.No.539 of 2022CA(CO)RLP(10/02/2022)