HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION NO.1318 OF 2007 Date: 05.03.2010 Between: P. Lakshminarayana Reddy ……Petitioner And: M. Venkateswarlu and another ……Respondents. HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION NO.1318 OF 2007 ORDER: This petition is filed by the 1st accused (A-1) under Section 482 Cr.P.C for quashing proceedings in C.C.No.1544 of 2003 on the file of X Metropolitan Magistrate at Malkajigiri relating to offences punishable under Sections 406 and 420 IPC. The first respondent/defacto-complainant is the victim in this case. Notice of this petition was sent to her by post on 25.02.2010. Notice of this petition was also served on the Assistant Public Prosecutor attached to the lower court. Subject matter of the case relates to chit fund transaction in which the 1st respondent was member. The chit fund transaction started in October, 1999. The 1st respondent became highest bidder in November, 2002. It is her grievance that inspite of it, she was not paid the prize amount of Rs.1,80,000/- by Managing Director and Director of M/s. Visveswar Finance & Chit Fund (P) Limited and misappropriated those amounts payable to her. As per endorsement of the Assistant Public Prosecutor of the lower court, the case was split up by the lower court as against the petitioner/A-1 and trial of the case was conducted as against A-2 and the lower court acquitted A-2 on merits. Since stay granted by this Court in this petition is pending, the case against A-1 is pending in the lower court. In the charge sheet, the petitioner/A-1 is shown as Managing Director of the company prior to 09.01.2003. It is his case that originally his father-in-law P. Purushothamma Reddy who is shown as deceased accused in the charge sheet was Managing Director of the company till his death on 02.01.2003 and that subsequently all of a sudden the petitioner was appointed as Managing Director of the company by resolution dated 09.01.2003. The petitioner filed copy of Registration of Resolutions and agreements pursuant to Section 192 of the Companies Act, 1956 issued by the Registrar of Companies, Hyderabad. It shows that the petitioner was appointed as Managing Director by resolution of the Board of Directors on 09.01.2003 and that the said resolution was communicated to the Registrar of the Companies on 28.01.2003 and that the same was recorded by the Registrar of Companies on 09.02.2003. Prior to 09.01.2003, the petitioner had nothing to do with the chit fund company or its affairs or its management. Thus, the petitioner is not the person who is stated to have committed default or any other offence in relation to the transaction of the 1st respondent which took place in November, 2002. It follows that there is absolutely no prima facie case against the petitioner and that the proceedings against him are nothing but abuse of process of law. In the result, the petition is allowed quashing proceedings in C.C.No.1544 of 2003 on the file of X Metropolitan Magistrate, Malkajigiri, in so far as the petitioner/a-1 is concerned. ___________________________________ SAMUDRALA GOVINDARAJULU,J Date:05.03.2010. Gk. HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION NO.1317 OF 2007 Date: 05.03.2010 Gk.