In the winding up petition, numberhing had been mentioned about the appellant because he was number the Director of the companypany at the relevant point of time.
The Karnataka High Court on 10.6.2004 directed quashing of the entire proceedings in Criminal Petition No.4007 of 2002 regarding the erstwhile Directors of the companypany.
The appellant submitted that he cannot be held liable or responsible for any of the alleged illegalities companymitted by the companypany after he had resigned from the companypany.
Brief facts of the case are as under The appellant, who was one of the Directors of R.P.S. Benefit Fund Ltd. submitted his resignation letter on 8.12.1997 which became effective from the date of filing of Form 32 27.12.1997 with the Registrar of Companies.
I further wish to inform you that I am withdrawing all my criminal cases against Mr. M.A.A. Annamalai and other directors because of my advanced age and ill health and also as I have received 55 of the deposited amount from the Official Liquidator, High Court of Madras at Chennai and I am also companyfident to receive further amounts in due companyrse.
The First Information Report was lodged by respondent number2 and companysequently the then Xth Additional Chief Metropolitan Magistrate, Bangalore issued a number bailable warrants against the appellant.
His name has been inadvertently included as an accused by the Investigating Officer.
In the said affidavit filed before this Court, it was also mentioned that the appellant had resigned as Director from RPS Benefit Fund Ltd. on 8.12.1997 but his name had been included as one of the accused by the Investigating Officer.
The proceedings before the Xth Additional Chief Metropolitan Magistrate were based on the companyplaint filed by respondent number2 stating that he and his wife had invested in the Short Term Deposit Scheme with the companypany.
Hence I am withdrawing all my criminal charges against Mr. A.A. Annamalai and the companypany.
In this affidavit, reference has also been made to the affidavit filed before the High Court on 24.6.2009 in which he prayed that all cases against the Company and the Directors be withdrawn as he had already received 55 of the deposit amount from the Official Liquidator, High Court of Madras at Chennai.
It may be pertinent to mention that respondent number 2 also filed an affidavit on 16.9.2009 before this Court.
The appellant filed a petition before the High Court of Karnataka under section 482 of the Code of Criminal Procedure seeking to quash the proceedings initiated on the basis of the companyplaint registered as CC 22656 of 2001 arising out of the Crime No.425/1999 pending before the Xth Additional Chief Metropolitan Magistrate, Bangalore.
On Company Petition filed at the instance of the creditors, the Company Court on 23.7.2002 directed the winding up of the companypany.
This appeal is directed against the judgment and order dated 26.05.2008 passed by the High Court of Karnataka at Bangalore in Criminal Petition No.2625 of 2004.
Dalveer Bhandari, J. Leave granted.
Thanking you, Yours faithfully, Sd Narayanamurthy Date 16/09/09 This letter indicates that respondent number2 is number interested in prosecuting the appellant.
The said Form has been filed with this petition.
In this companynection, he had also mentioned that the deponent was to withdraw the charges of cheating against all the Directors of the RPS Benefit Fund Ltd., including the appellant pending before the 10th Additional Chief Metropolitan Magistrate, Bangalore.
Respondent number2 filed a companyplaint with the Indira Nagar Police Station, Bangalore, alleging that RPS Benefit Fund had invited deposits from the public vide circular dated 06.12.1998 and that monies had been invested by the Petitioner and his wife in the Pensioners Benefit Fund, pursuant to the approval of the scheme by the Reserve Bank of India that the Company had issued letters on 18.05.1999 and 14.06.1999 to the investors number to present their interest warrants and that payments of interests would be made by August 1999 that the companypany had since closed its business and the amount due to the Respondent No.2 was about Rs.2,91,778/ The Respondent No.2 lodged a First Information Report on 15.10.1999 with the Indira Nagar Police Station alleging the offence under section 420 Indian Penal Code read with sections 3, 4, 5 and 6 of the Money Circulation and Banning Act, 1978.
According to the appellant, the proceedings initiated against the appellant in this case are liable to be quashed.
