S.B.MAJMUDAR - (1.) The present three applicants have taken out this Judges summons praying for an order that hearing of Case No. 374 of 1982 filed in the Court of the learned Additional Chief Metropolitan Magistrate 37 Court Esplanade Bombay be stayed. The application is filed against opponent No. 1 who is the original complainant in the said criminal case and also against opponent No. 2 which is the Court Committee appointed by this Court in the Case of Divya Vasundhara Financiers Private Limited Ahmedabad.
(2.) In order to appreciate the grievance of the applicant it is necessary to note a few introductory facts leading to the present application. Opponent No. 2 - Divya Vasundhara Financiers Private Limited which is a private limited Company was floated with fixed capital of Rs. 1 lac divided into 1000 ordinary shares of Rs. 100.00 each. Its object was to promote a scheme of chit fund and savings amongst others. It appears that the Company had accepted deposits from the public under different schemes. The Company gave advances against industrial and residential properties. After some time the Company ran into difficulties somewhere in April 1977. At that time the public deposits of the Company were more than Rs. 6 50 0 0 as stated in Company Petition No. 18 of 1978 which was moved in this Court for sanctioning a scheme of promise or arrangement. As the Company was in financial difficulties the aforesaid scheme of arrangement and compromise was moved under Sec. 391 of the Companies Act. It was registered as Company Petition No 18 of 1978. In that company petition after hearing the learned Counsel for the concerned creditors the scheme was permitted to be put to vote by different classes of creditors and ultimately this Court (Coram: B. K. Mehta J.) sanctioned the said scheme of compromise and arrangement by his order dated 28 8 12 In the said company petition Company Application No. 179 of 1977 vas moved by the said Company and its Chairman and Managing Director Shri Keshavlal Dhoribhai Patel requesting this Court to slay the commencement or continuation of any suit or proceedings against the Company and or its Directors in connection with the affairs of the Company on such terms as the Court ultimately thought it fit to impose. B. K. Mehta J. (as he then was) by his order dated 28-7-1978 stayed the commencement or continuation of the suits or proceedings against the Company and/or its Directors in connection with the affairs of the Company which were listed in the said application. Various criminal cases pending in the Chief Metropolitan Magistrate Court at Ahmedabad in the Court of the learned Judicial Magistrate First Class Surat in the Court of the learned Judicial Magistrate First Class Nadiad and Criminal Case No. 126/W/94 in the Court of the Metropolitan Magistrate Esplanade Bombay were stayed pending finalisation of the scheme proceedings. Several suits filed by several creditors in different Courts were also stayed. Under the sanctioned scheme a Court Committee was appointed to be the Managing Committee consisting of 9 members whose names are mentioned in the scheme to do all that is necessary for working out the scheme to supervise the working of the Company and to do all acts deeds and things necessary or incidental for the working of the Company. As a Chairman of the Committee Shri N. M. Miabhoy a retired Chief Justice of this Court was appointed. Eight other members were also appointed in the said committee. Shri G. F. Mankodi was appointed as the Chief Executive Officer to look after the day-to-day management of the affairs of the Company on behalf of the Committee. The said Court Committee is functioning from the date of sanction of the scheme till today The Court Committee has been able to realise money value of some of the assets of the Company and has been able to distribute some dividends to the creditors of the Company.
(3.) It is in the background of the aforesaid facts that the present company application has been moved by the applicants who are the Directors of Divya Vasundhara Financiers Private Limited to stay further proceedings in Criminal Case No. 374 of 1982 as filed by the opponent No. 1 herein in the Court of Additional Chief Metropolitan Magistrate 37 Court Esplanade Bombay. It is submitted that the said complaint was filed by the first opponent on 2-8-1977 at L. N. Marg Police Station and after making investigation a charge sheet was filed against the applicants in the Metropolitan Magistrates Court at Bombay. The charge sheet is filed under Sec. 420 I. P. Code on the ground that the first opponent was cheated by the applicant-Directors of the Company and that he was duped to part with his money. It appears that in the said case the learned Magistrate was pleased to pass an order on 23-2-1984 whereby he declined to frame any charge against the applicants and they were discharged. The first opponent therefore challenged the said order by filing a revision application being Revision Application No. 136 of 1984 in the Court of Session at Bombay and the said Court was pleased to set aside the order of discharge and remand the matter back to the trial Court for proceeding on merit. After the case was so remanded the present applicants made application on 6-9-1985 before the trial Court praying for stay of the proceedings on the ground that this Court had on 28-7-1978 ordered stay of the proceedings of any suit or proceedings against the Company and/or its Directors in connection with the affairs of the Company till further orders However the applicants were orally informed by the trial Court that no stay of further proceedings would be granted and that if they wanted to stay the hearing of the case they had to obtain specific order from this Court. In these circumstances the present application has been moved.;