Kolkata (IANS). The Calcutta High Court has dismissed the plea of financial services company India Infoline Limited (IIL) to quash proceedings under sections 63(4)/196(3)/301(5)/372A(6). The case against the Companies Act and Section 467/120B of the Indian Penal Code is pending in the Court of Chief Judicial Magistrate, Purba Midnapore.
Explain that the lower court is hearing the case on the basis of Arunav Patra’s complaint.
On March 9, 2012, Patra purchased two debentures of India Infoline Finance Limited (IIFL), a subsidiary of (IIL). Later he was paid interest for two debentures.
On 3 October 2012, Patra filed a complaint alleging that IIFL and IIL entered into a criminal conspiracy and manipulated IIFL’s records to deprive him of his rights.
It was alleged in Patra’s complaint that he did so in order to give any pecuniary benefit he might receive from the company’s profits.
IIL’s counsel submitted before the High Court that IIFL is a holding company, but it has no role in respect of debentures of its subsidiary. He also challenged the jurisdiction of the court of the Chief Judicial Magistrate, Purba Midnapore, to try such a case.
Counsel appearing for Patra opposed this and pointed out that it was IIL who had interacted with their client on behalf of IIFL and also shared the documents. Since the office of IIL is under the jurisdiction of the trial court, the court can hear the matter.
After considering the arguments of both the parties, Justice Rai Chattopadhyay directed that justice should be done in the matter. Said, dismissing the complaint of both the parties, directs the trial court to initiate the proceedings in accordance with law and at the earliest.
