The court held that a Criminal Original Petition for quashing proceedings is not maintainable merely because the corporate respondent was dissolved. Proceedings continue against natural persons, and the petitioner must raise defenses before the trial court.
Second quash petition dismissed; petitioner to raise defenses before the trial court instead.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Criminal Original Petition No.17524 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.08.2023
CORAM
THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH
Criminal Original Petition No.17524 of 2023 and Crl.M.P.Nos.11458 & 11460 of 2023
G.V.Thomas ...Petitioner
Vs
M/s.Castrol India Ltd., Technopolis, Knowledge Park, Mahakali Caves Road, Chakala, Andheri (East), Mumbai - 400 093, Having its Southern Region Office At Rayala Towers, V Floor, Nos.781-785, Anna Salai, Chennai - 600 002. represented by Gurusamy Jaganathan Sridhar Sales Manager - Heavy Duty
... Respondent
PRAYER : Criminal Original Petition filed under Section 482 of the Code of Criminal Procedure, 1973, praying to call for the records in C.C.No.7832 of 2017 on the file of learned Fast Track Court II, Metropolitan Magistrate, Egmore at Allikulam, Chennai - 3.
For Petitioner : Mr.John Zachariah
*****
O R D E R
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Criminal Original Petition No.17524 of 2023
This Criminal Original Petition has been filed seeking to quash the
proceedings in C.C.No.7832 of 2017 on the file of learned Fast Track Court II, Metropolitan Magistrate, Egmore at Allikulam, Chennai - 3.
2. The petitioner had approached this Court on an earlier occasion by filing Crl.O.P.No.5239 of 2020 and this Court by order dated 04.07.2022 dismissed the quash petition and directed the Court below to complete the proceedings within a period of three months. The present quash petition has been filed on the ground that the National Company Law Tribunal [NCLT], Kochi Bench, Kochi, passed an order and thereby the company itself has been dissolved and a liquidator has been appointed for undertaking the Corporate Insolvency Resolution Process. In view of the same, the petitioner has approached this Court seeking to quash the proceedings.
3. In the considered view of this Court, the dissolution of a company and the moratorium will apply only insofar as corporate debtor company is concerned and the proceedings will always be continued against natural persons. Useful reference can be made in the judgment of the Apex Court in Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of
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Criminal Original Petition No.17524 of 2023
India Ltd. [ 2023 (1) MWN (Crl.) DCC 145 (SC) ] .
4. In view of the above, the second quash petition is not maintainable
before this Court. It is left open to the petitioner to raise all the defence before the Court below and the same shall be considered on its own merits and in accordance with law.
This Criminal Original Petition is disposed of in the above terms. Consequently, connected miscellaneous petitions are closed.
08.08.2023
Index : Yes/No Speaking order:Yes/No Neutral citation:Yes/No gm To
The Fast Track Court II, Metropolitan Magistrate, Egmore at Allikulam, Chennai - 3.
N.ANAND VENKATESH, J
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Criminal Original Petition No.17524 of 2023
gm
Criminal Original Petition No.17524 of 2023
08.08.2023
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2 issues framed by the court
Whether a criminal proceeding can be quashed solely on the ground that the corporate defendant has been dissolved and is undergoing liquidation.
Whether the moratorium under the Corporate Insolvency Resolution Process bars proceedings against natural persons in underlying offences.
Colour shows how this judgement treated each authority
Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd.Explained¶21
Ajay Kumar Radheyshyam Goenka v. Tourism Finance Corporation of India Ltd. [2023 (1) MWN (Crl.) DCC 145 (SC)]
1 provisions across 1 enactments
G.V.Thomas
M/s.Castrol India Ltd.
N. Anand Venkatesh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
