Dismissed

Syam Chellappan v. the State of Kerala

Kerala HC27 Oct 2021Crl.MC/4478/2015

Case brief

AI extract

What is this about?

The High Court of Kerala considered a criminal misc. case filed by accused persons seeking to quash criminal proceedings for alleged violations of money lending and interest charging laws. The court held that issues regarding licence violations and interest computations require factual assessment via trial evidence and dismissed the plea to quash.

What did the court decide?

The Criminal Miscellaneous Case (CRL.MC) No. 4478 of 2015 seeking quash of proceedings was dismissed.

Syam Chellappan Vs the State of Kerala — Money Laundering | Kerala HC (2021)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A.

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WEDNESDAY, THE 27^TH DAY OF OCTOBER 2021 / 5TH KARTHIKA, 1943

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CRL.MC NO. 4478 OF 2015

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AGAINST THE PROCEEDINGS IN CC NO.25/2015 ON THE FILE OF THE CHIEF

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JUDICIAL MAGISTRATE COURT, PATHANAMTHITTA

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PETITIONERS/ACCUSED NOS.1 AND 2:

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1 SYAM CHELLAPPAN AGED 40 YEARS S/O.CHELLAPPAN, FLAT NO.6D, 6TH FLOOR, TRANQUIL RESIDENCY, CHEMBUKKU,ERNAKULAM - 23.

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2 BOBBY JOHN AGED 26 YEARS S/O.PHILIP C.T, MALIYIL PATTUMUKKIL, NIRANAM (P.O),THIRUVALLA, PATHANAMTHITTA.

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BY ADV SRI.S.SHANAVAS KHAN

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RESPONDENT/S:

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THE STATE OF KERALA REPRESENTED BY THE PUBLIC PROSECUTOR,HIGH COURT OF KERALA, ERNAKULAM.

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OTHER PRESENT:

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PP- SRI.SUDHEER GOPALAKRISHNAN

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THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON 27.10.2021, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:

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CRL.MC No.4478 of 2015 2

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O R D E R

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The petitioners are accused Nos.1 and 2 in

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Crime No.1636 of 2014 of Pathanamthitta Police Station which is now pending as C.C.No.25/2015 before the Chief Judicial Magistrate Court, Pathanamthitta. The petitioners have filed this Crl.M.C. to quash Annexure-B final report submitted in the above case on which cognizance was taken by the Chief Judicial Magistrate Court, Pathanamthitta.

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The aforesaid case was registered on the basis of a search conducted in the premises of M/s.Hinduja Leyland Finance which is a company

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wherein the 1^st and 2^nd petitioners were Zonal Manager and Manager respectively. The offence alleged against them are under Section 17 of the

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Kerala Money Lenders Act,1958 and under Section 3

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r/w. Section 9 of the Kerala Prohibition of Charging Exorbitant Interest Act, 2012. The aforesaid crime was registered pursuant to

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CRL.MC No.4478 of 2015 3

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complaints received from several persons with regard to the exorbitant rate of interest charged against them in respect of loans taken by them from the said company.

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It was contended that no offence either under Section 17 of the Money Lenders Act or under the provisions of Kerala Prohibition of Charging Exorbitant Interest Act can be charged in this case as the basic ingredients of aforesaid offences are not attracted. On the basis of the above ground, the petitioners seek to quash the proceedings before the lower court by invoking the inherent powers of this Court under Section 482 of the Code of Criminal Procedure (Cr.PC).

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petitioners and the learned Public Prosecutor.

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The learned counsel for the petitioners submits that Section 17 of the Kerala Money

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Lenders Act would not get attracted as the company on which the petitioners are employed is having a

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CRL.MC No.4478 of 2015 4

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certificate of registration issued for non-banking

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financial institutions. They are having the licence under Section 3 of the Kerala Money Lenders Act as well. With regard to the offences under the Kerala Prohibition of charging

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Exorbitant Interest Act, it is contended that going by the amounts collected from the de facto complainants and the amount advanced, it cannot be concluded that the petitioners have collected exorbitant interest from the de facto

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complainants.

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6. On the other hand, the learned Public

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Prosecutor would contend that, the offence under Section 17 of the Money Lenders Act is attracted. According to him, merely because of the reason that money lending was conducted on the basis of a licence under the Act, it cannot be contended that the offence under Section 17 is not attracted. It is a case of violation of conditions stipulated in the licence issued under Section 3 of the Act. In

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that circumstances also, the offence is attracted.

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CRL.MC No.4478 of 2015 5

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The learned Public Prosecutor points out that, in this case, the case of the prosecution is with regard to the collection of excessive interest and it amounts to violation of conditions of licence. Thus learned public prosecutor prays for dismissal of the Crl M.C

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As regard to the offence under Section 17 of the Kerala Money Lenders Act, as rightly pointed out by the learned Public Prosecutor, merely because of the fact that money lending was being conducted on the basis of a licence under the Act, a person cannot be get absolved from penal consequences under Section 17 of the Act. It specifically contemplates for penal consequences, in cases where violation of condition of licence is found. It is pointed out that the allegation in the prosecution is with regard to the collection of excess interest, and it amounts to violation of

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the stipulation contained in Section 7 of the Kerala Money Lenders Act. In such circumstances, the contention of the learned counsel for the

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CRL.MC No.4478 of 2015 6

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petitioners that, offence under Section 17 of the Act is not attracted cannot be considered, at this stage.

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8. Another contention highlighted by the

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learned counsel for the petitioners is with regard to the offence under Section 3 r/w Section 9 of the Kerala Prohibition of charging Exorbitant Interest Act. The learned counsel took me to the details contained in the final report and connected documents, wherein the amounts advanced and the total amounts allegedly recovered from the debtors were specifically mentioned. Based on the same, it was contended that no exorbitant interest as alleged by the prosecution was collected by the petitioners. However, I am of the view that as the computation of interest on the basis of amounts advanced and the amounts recovered are purely a question of fact which is to be decided on the basis of the evidence let in by the parties in a full fledged trial. At this stage, in a proceeding under Section 482 of the Cr.PC those questions

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CRL.MC No.4478 of 2015 7

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cannot be considered as the said issue requires appreciation of documentary as well as oral evidence. In such circumstances, I am of the view that, this is a case in which inherent powers of this Court under Section 482 of the Cr.PC cannot be invoked.

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Accordingly, this Crl.M.C. is dismissed. However, it is made clear that none of the observations made in this order will have any impact on the contentions raised by the parties and all the said contentions are to be considered

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by the trial court, untrammeled by any of the observations contained therein.

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Sd/ZIYAD RAHMAN A.A. JUDGE

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pkk

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CRL.MC No.4478 of 2015 8

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APPENDIX OF CRL.MC 4478/2015

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PETITIONER’S ANNEXURES:

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ANNEXURE-A: TRUE COPY OF THE FIR IN CRIME NO.1636/2014 OF PATHANAMTHITTA POLICE STATION.

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ANNEXURE-B: TRUE COPY OF THE FINAL REPORT IN CRIME NO.1636/2014 OF PATHANAMTHITTA POLICE STATION.

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ANNEXURE-C: TRUE COPY OF THE CERTIFICATE REGISTRATION ISSUED BY THE DEPUTY GENERAL MANAGER, RESERVE BANK OF INDIA.

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ANNEXURE-D: TRUE COPY OF THE CERTIFICATE OF INCORPORATION ISSUED BY THE ASSISTANT REGISTRAR OF COMPANIES.

Syam Chellappan v. the State of Kerala

Case brief

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Syam Chellappan v. the State of Kerala

Case brief

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