M O H IQBAL Vs. AGATE FINANCE LTD

JUDGEMENT

(1.) The petitioners, who are accused 2 and 3 in case pending in C.C.No.10129 of 2003 on the file of the learned XI Metropolitan Magistrate, Saidapet, Chennai seek to quash proceedings as against them.

(2.) The respondent/complainant, a finance house, had advanced monies to the 1st accused company, M/s.M.O.Hassan Kuthoos Maricar Ltd., Pondicherry. The petitioners herein were the Director and Executive Director of the 1st accused company. The respondent/complainant informs that being induced to consider the request of the accused for financial assistance and on the assurance given by the accused 2 and 3, a sum of Rs.1,90,00,000/- was afforded on the basis of promissory note executed by the 1st accused represented by the accused 2 and 3. A deed of hypothecation executed by the 3rd accused on behalf of the 1st accused company was entered into between the 1st accused company and the respondent/complainant. The charges were duly registered with the Registrar of Companies.

(3.) The essence of the compliant is that monies were lent to the accused on the strength of the security in the form of hypothecated goods of the 1st accused company. Towards securing the interest of the respondent/complainant, there was provision in the hypothecation agreement, which provided that the proceeds of sale of the goods which stood hypothecated would be paid over to the respondent/ complainant. This, according to the respondent/complainant has been breached by the 1st accused and hence, the complaint before the R4 Pondy Bazar Police Station has been preferred.