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Madan Singh and another Versus U.T. Chandigarh and others

Criminal proceedings instituted on the basis of such FIR - Held that:- As allegations made in the FIR even if taken on the face and accepted in the entirety do not constitute any offence and thus to the mind of this Court the criminal proceedings instituted on the basis of such FIR needs to be quashed. Though, it is relevant to point out here that grouse, if any, regarding running of this company by any of the constituents of the company they are well within their rights to move the appropriate .....

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sed above the present FIR No.69 dated 19.4.2012 under Sections 420, 465, 467,468, 471, 120-B IPC registered with Police Station Division No.3 Chandigarh Annexure P/1 qua the present petitioners is hereby quashed with all consequential effects. - CRM-M-1720 of 2013, CRM-M-1526 of 2015 - Dated:- 16-9-2015 - MR. FATEH DEEP SINGH, J. Present : Mr. R.S. Athwal, Advocate for the petitioners.(In CRM-M-1720 of 2013). Ms. Reeta Kohli, Addl. A.G. Punjab. Mr. J.S. Toor, Advocate for U.T. Chandigarh. Mr. J. .....

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Chandigarh, Annexure P/1 and another a transfer petition preferred by complainant (accused in FIR No.125 dated 10.6.2014) Raman Uppal praying for transfer of the investigations of this case under Sections 406, 420, 419, 465, 467, 468, 471 and 120-B IPC registered with Police Station Phase No.1, SAS Nagar, Mohali got registered by one Narinder Singh being conducted by Punjab Police at Mohali to Chandigarh Police who are already investigating FIR No.69 dated 19.4.2012 under Sections 420, 465, 467, .....

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ous and comprehensive adjudication it is necessitated to take a recourse down the very origin and how it led to such a multifarious litigation. A company by the name and style of M/s International Customers Related Management Services Private Limited (in short, 'ICRMS'/Company) was incorporated on 18.6.2001 as a Private Limited Company with original corporate office situated at H. No.768, Phase 3B1, Mohali which is depicted initially at the time of its incorporation, though at times it i .....

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yer. It is the claim of the opponents that in fact this company was founded and Mr. Itinderjit Singh and Jagbir Singh were its founding promoters directors and, thereafter, their place was taken over by the couple Sukhbir Singh Shergill and his wife Gurbir Kaur Shergill who happens to be ex-friends of Mr. Gurnihal Singh Pirzada an Ex-IAS officer. Subsequent during the course of events, Jatinder Singh Dua and his son Sagar Singh Dua the latter one present intervenor were also made directors on 15 .....

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ad a public notice purported to have been issued by Sukhbir Singh Shergill and Gurbir Kaur Shergill throwing Jatinder Singh Dua and Sagar Singh Dua out of the Company in a news paper and which as per him in his complaint which forms ditto replica by way of Annexure A-1 was on 19.4.2012 was the date of his knowledge of bungling in the company i.e. almost after 11 years of the incorporation of the company. It is pertinent to mention here that between 1.10.2010 to 29.9.2011 Dua's are alleged to .....

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alleged that in fact during the course of expanding his business in the area of Chandigarh he had come across Sukhbir Singh Shergill and developed intimacy and had entrusted him with the duties for incorporating this company and had paid him money but Sukhbir Singh Shergill instead had deceived him and had forged his signatures on Form 1-A pertaining to application for allocation of name and by forging and making Jagbir Singh and Itinderjeet Singh founding promoter directors. He has further alle .....

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ring this another lot of 5000/- equity shares were got transferred to Shergill's from Jagbir Singh and Itinderjit Singh in which Gurwinder Singh Sarin, Company Secretary colluded with Shergills and, thus, misused the funds of the company from its banks namely Punjab National Bank, Sector 17, ICICI Bank, Sector 9 and HDFC Bank, Sector 17 all at Chandigarh. The petitioners have sought quashment of this FIR and has sought to portray the entire story of the complainant as figment of lies based o .....

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y and if there is any allegation of oppression or mismanagement they are at liberty to move appropriate forum under the Companies Act, 1956. Going through the various allegations and counter-allegations an impression has sought to be made that the company is tried to be taken over by Gurnihal Singh Pirzada who is bent upon misusing the process of law and which is the precise motive for their false implication, thus, claimed that they have done nothing wrong and that there is neither any allegati .....

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t the company funds were being moved from the company accounts to personal accounts of the accused and that the investigations have established the involvement of each and every accused in the entire scandal and sought to term the averments of the petitioners to be without any basis and sought dismissal of the petition. The main grounds raked up by the petitioner Raman Uppal in the transfer petition are that the Chandigarh police is already seized of the matter their investigations being first i .....

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sought to claim malafidesness of the Investigating Agency at the behest of Jeet Mohinder Singh Sidhu, MLA, one of the players in this saga who has been instrumental in joining hands with Shergills as they both were running Adesh foundation which runs Engineering and Technology Colleges at Bathinda, Faridkot and Muktsar, Sarbat foundation and so many organisations and, thus, it is claimed that this MLA who was instrumental in change of Government by shifting political loyalty with the ruling par .....

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on of false evidence by the investigators who are trying to help Gurnihal Singh Pirzada and Raman Uppal and their associates to usurp the properties of the company and prays for handing over the investigations to CBI. Upon hearing learned counsel for the parties and perusing the exceptionally voluminous records, it transpires that as a consequence of this imbroglio there has been concerted efforts by every quarter to duly and unduly pressurise the other side and evidently as an upmanship at ever .....

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gh his attorney Deepinder Singh Dhaliwal against Sukhbir Singh Shergill, and others. 2.FIR No.175 dated 16.9.2013 under Sections 464, 466, 467, 468, 471, 472, 474, 212, 420 and 120-B IPC registered at Police Station Sector 3, Chandiagrh by Raman Uppal through his attorney against Jeet Mohinder Singh Sidhu, MLA, and others. 3 FIR No.193 dated 20.9.2013 registered at Police Station Luhdiana against Shergills by Narinder Singh. 4.FIR No.125 dated 10.6.2014 under Sections 406, 420 and 419, 465, 467, .....

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nihal Singh Pirzada and others by DLF. The crux of all these FIRs what one comes across is that it is the same series of transactions/acts of the players of the company regarding the company and thus could have been conveniently and comprehensively investigated in one case. Rather it appears that their very purpose is to only undo the other case and create confusion and by such distortions to make case all the more murkier to facilitate not only the escape of the real culprits but also to put of .....

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Limited (FRPL). 3.Fateh Home Private Limited (FHPL) As has been the contentions in all these companies, Gurnihal Singh Pirzada and his wife Gurveen Kaur Pirzada also hold prominent positions as directors which subsidiaries came into being after the Dua's entered into the parent company ICRMS. As a prelude to the goings on it would facilitate better understanding if it is highlighted as has been brought to the notice of this Court that one Pawan Jot Kaur Gill who in fact was an employee of t .....

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aims was with a view to dislodge him from the company. Akinness of Raman Uppal to the company which as per the allegations of the counsel for the petitioners is a ghost director acting at the behest and for Gurnihal Singh Pirzada and his status in the company has been set to knot in the light of the statement of Nipana Vilas Gajanan, Assistatnt Registrar of Companies made through his letter dated 9.5.2012 Annexure P/2 who has stated that Raman Uppal has no role to play in the company and further .....

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e Investigating Agencies are totally in dark as to the contents of the records of the Registrar of Companies. What needs to be highlighted that Raman Uppal claims that he prior to the present company owned 08 companies but to the very query of the Court, his counsel could not point out any of the documents of these companies to show mention of the present company or any of the returns filed before the Registrar of Companies or the Income Tax or other authorities. Though, in a separate proceeding .....

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y has benami interests in the company and who was on deputation with the State of Punjab was working as Managing Director of Punjab State Electronics Development Corporation Limited as well as of PCL from 27.10.1999 till 28.10.2001 and during that period he was chairman of a private company opened by him and his wife under the name and style M/s Mitgart India Limited, Mohali to whom he himself exercising powers of Managing Director has allotted industrial plot at Mohali on lease for a period of .....

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248 of 2012 by way of Public Interest Litigation the authorities had ordered detailed investigations against Gurnihal Singh Pirzada and it is during this very period he was arrested in FIR No.2 of 2004 registered with Police Station, Vigilance Bureau, Phase-1 Mohali and his resignation stood accepted on 13.3.2011. Though, for obvious reasons nothing tangible is sought to be reflected from this enquiry, finding of which is on records of this case but the call details between Gurnihal Singh Pirzad .....

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sation dated 27.8.2012 are matters which show that he has a definite interest in the company. The bias which is sought to be compounded in the investigations is further highlighted by the learned counsel from the fact that finding dated 11.2.2013 by the Police Complaint Authority has indicted police for partial investigations. The perusal of the challan filed before the trial Court reflects that there is no worthwhile investigations undertaken by the police as to the very source of this money wh .....

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d so on and so forth. The provisions of the Companies Act, 1956 ( in short, 'the Act')mandates under Section 110 transfer of shares and Section 112 provides for issuance of certificate of transfer, whereas, Section 35 deals with the very certificate of incorporation to be conclusive and, thus, in terms of Section 16 of the Act whenever there is alteration of the memorandum of articles of association and the agreement of the agent in terms of Sections 31,33,40 and 39 ought to be subject m .....

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learned counsel that net result leads the Court nowhere and rather highlights another endeavour to give a decent burial to this ill- gotten wealth in the hands of businessmen, bureaucrats, politicians and their stooges. As has been remarked by the propagator of Realism famous novelist Balzac behind every great fortune there is a crime and which was even quoted by Mario Puzo in the literary masterpiece The God Father aptly applies to this case before this Court. No doubt under the very provisions .....

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ately determined in terms of Section 399 of the Act. With the invent of Director Identification Number (DIN) Rules, 2006 each of the director is provided with a identification code and which is nowhere there in the investigation to pinpoint the very locus standi of each of these claimants to the company and whenever there is retirement of previous director and introduction of new one the same has to be in compliance of the provisions of the Act regarding which a definite amount of fees is paid i .....

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derjeet Singh and Jagbir Singh were the founding promoters of the company is in sharp contradiction to the claim of the complainant and which is certainly a distressing feature for the prosecution in this case. The resolve of the players to this squabble to share the spoils of this either by hook or crook is evident from the manner in which they have tried to overawe the judicial process not only by levelling allegations against the subordinate judicial officer but even judges from this Court ha .....

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nter-State ramification necessitates that there need to be a fair, impartial and comprehensive investigations from all angles as to the evaders of income tax, money laundering and source of this ill-gotten wealth which is the root cause of this eruption of dispute and which apparently appears to be much more than what meets the eye. Though, on behalf of the applicant-petitioner in the transfer application the learned counsel has sought to impress upon this Court by citing Sakiri Vasu vs. State o .....

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nct FIRs can be lodged for independent offences. As there is distinct occurrence and it is the statutory right and duty of the police in terms of Section 156 Cr.P.C. to investigate into any cognizable offence and the same is sought to be further strengthened by placing reliance on Central Bureau of Investigation and another vs. Rajesh Gandhi and another 1997 AIR (SC) 93 to embolden that the accused have no right to seek transfer of case from one investigating agency to another. It needs to be st .....

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is made before him by a witness but it cannot be lost sight of the fact that in its endeavour to bring about truth in the investigations it mandates that Investigating Officer should record statement which do throw light on the crucial aspects of the case and cannot shrug off his shoulders from this onerous duty which law casts upon him. As has been detailed and discussed above it is beyond any doubt that a sinister design is being made to hide the truth from the Court as well as those concerned .....

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this Court has vast power to refer the matter to an independent agency and the present case is one of those cases which urgently and earnestly makes out it to be an exceptional case. Though, even after submission of challan by the police in order to secure ends of justice such a power needs to be exercised and similarly in the case of State of West Bengal and others vs. The Committee for Protection of Democratic Rights West Bengals and others 2010(3) SCC 571 a Constitutional Bench of Hon'ble .....

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in the present case both the police forces failed to carry out the investigations and, thus, to bring about justice something more than what has transpired needs to be done else the confidence of the people in the system would stand greatly eroded. As has been brought to the notice of this Court police by exercising its extra-jurisdictional power which learned counsel for any of the sides could not pinpoint under what provisions of law they have sealed suo moto the properties of the company and .....

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nd others 2013(2) RCR Criminal 197 evaluating the powers of this Court in terms of Section 156 Cr.P.C. the Court can order the following investigations:- 1.Initial investigations. 2.Further investigations. 3.Fresh or de-novo or reinvestigations. Since in the present set of circumstances the chargesheet has been filed but in view of the contradictory findings the investigations in all these different cases so registered and in such a situation to do justice between parties and to instil the confi .....

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course of justice as it is not only to do justice but also to instil confidence in the system of the people at large. The police under the guise of carrying on investigations cannot be allowed to fretter away the evidence and, thus, act as an impediment and thereby obstruct the course of justice. More so, there has been gross dereliction of duties by the police and seeking support from Karan Singh Vs. State of Haryana 2013(4) RCR (Criminal) 205 being a classical case of misconduct in carrying o .....

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rata Chattoraj vs. Union of India and others 2014(3) RCR (Criminal) 419 and in a recent view of the Hon'ble Supreme Court of India in Disha vs. State of Gujarat and others 2011(3) RCR 9Criminal) 694 where the Hon'ble Apex Court had laid down the following as not exhaustive but illustrative grounds on the basis of which investigations can be transferred and, thus, in the exercise of these powers it would be desirable for this Court to issue directions to constitute a Special Investigating .....

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e due exercise of powers in collecting such evidence as is necessary and which is essential integral part of investigations. The entire records shall be handed over to them and with directions to the Authorities concerned to fully cooperate with the SIT so formed. In the light of the same the transfer applications of the intervenor-applicant as well as of Raman Uppal stands disposed off in those terms. Though, On behalf of the State the arguments put forth from the side of the petitioners in the .....

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spect these petitioners have committed any criminal offence mere fact that they were appointed as directors on 29.9.2012 ipso facto do not means or can be construed that they have connived or were part of conspiracy with the co-accused. Learned State counsel with all fairness after going through the challan has conceded the fact that till date nothing concrete has come in the evidence or their specific role in any crime or evidence of the Investigating Agency against these petitioners. Taking su .....

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anying the F.I.R. do not disclose a cognizable offence, justifying an investigation by police officers under under Section 156(1) of the Code except under an order of a Magistrate within the purview of Section 155(2) of the Code. 3. Where the uncontroverted allegations made in the FIR or complaint and the evidence collected in support of the same do not disclose the commission of any offence and made out a case against the accused. 4. Where, the allegations in the FIR do not constitute a cogniza .....

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