1 C.C.NO. 593 OF 2015
IN THE COURT OF THE III ADDL. CHIEF METROPOLITAN
MAGISTRATE :: AT HYDERABAD
PRESENT : SRI D. VENKATESH,
III ADDL. CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD.
Wednesday, the 6th day of November, 2019
C.C. No. 593/2015
Between :
The State of Telangana, represented by the Station House Officer, P.S. S.R. Nagar, Hyderabad. …… Complainant
And
A1]Nagarimadugu Srikanth Reddy, S/o Lakshman Reddy,age: 37 years, R/o flat No. 107, Plot No. 43, R/o H.No. 83167/K/43, Leeladhar Enclave, Kalyan nagar, VentureIII, Hyderabad.
A2]Rapaka Satyanarayana, S/o Veeraswamy, age: 45 years, R/o flat No. 204, Plot No. 43, R/o H.No. 83167/K/43, Leeladhar Enclave, Kalyan nagar, VentureIII, Hyderabad.
A3]Leeladhar Dhuwalia, age: 65 years, Occ: Business, R/o flat No. 304, Plot No. 43, R/o H.No. 83167/K/43, Leeladhar Enclave, Kalyan nagar, VentureIII, Hyderabad. …… Accused
This case is coming on before me for final hearing in the presence of Sri P.J. Rama Krishna, the Senior Assistant Public Prosecutor for the Complainant and Sri. G. Venugopal Reddy, Advocate for Accused No.1 and 2 and Sri. K. Anand Kumar, Advocate
for Accused No.3 and after perusing the case records and upon
hearing the arguments on both sides, this Court made the following:
:: J U D G M E N T ::
1.The accused is indicted for the offence U/Sec. 420, 409. 447 r/w 34 of IPC by SubInspector of police, P.S. S.R. Nagar in Crime No.
2 C.C.NO. 593 OF 2015 824/2014 for having committed trespass, cheating by misappropriation of the society funds.
2.Brief facts of the Prosecution case:
(i)On 10.10.2013 [LW1] M. Joganna filed police report stating that he is the General Secretary of Leeladhar Enclave flat owners
Association and the earlier office bearers of association misappropriated the association funds by cheating the members of the association and further Accused No.3 did not return the original document and link documents relating to the Plot No. 43, Kalyan
Nagar along with the original development agreement. It was further complained that Accused No.1 and 2 even did not maintain the accounts properly relating to the association with an intention to cheat the association and the members of the association. It was further complained that when he along with J.R. Murthy and
Ravinder came forward to file complaint, Accused No.1 and 2 threatened them with dire consequences and further Accused No.3 was using the parking area of the apartment for parking his vehicle by trespassing into the apartment premises without paying any rent to the association amounting to trespass. Since Accused No.1 and 2 misappropriated the association funds and did not submit the accounts and Accused No.3 trespassed into the association land for parking his vehicle, he filed this complaint.
(ii)Basing on the said complaint [LW3]K. Govinda Reddy (Sub
Inspector of police) registered a case in Cr. No. 824/2013 U/Sec. 420, 3 C.C.NO. 593 OF 2015 409 and 447 r/w 34 IPC and issued FIR. During the course of investigation he examined and recorded the statement of [LW1] M.
Joganna, visited the scene of offence, examined and recorded the statement [LW2] P. Ravinder. He added section of law 409 of IPC.
On 2122015 he issued notice under section 41A Cr.P.C to Accused
No.1 and 2. Subsequenlty Accused No.3 was surrendered and released on Anticipaty bail. After completion of investigation filed charge sheet.
3.This Court taken cognizance of the offence under sections 420, 447 r/w 34 IPC against Accused No.1 to 3 and issued the process.
4. On the appearance of the Accused No.1 to 3, copies of documents were furnished to them by my learned predecessor as contemplated under section 207 Cr.P.C and issued process.
5.The accused No.1 to 3 were examined under section 239
Cr.P.C., and after hearing both parties, a charge under sections 420,409 and 447 r/w 34 of the Indian Penal Code against Accused
No.1 to 3 has been framed, read over and explained to them. The accused No.1 to 3 denied the accusation levelled against them, pleaded not guilty and claimed to be tried, for the said charge.
6.In order to substantiate the said charge, the prosecution has examined Pws.1 to 3 and got marked Exs.P1 to P5. During cross examination of PW.1 Exs.D1 to D3 marked.
7.After closure of the above prosecution evidence, the Accused
No.1 to 3 were examined under section 313 Cr.P.C., with reference to 4 C.C.NO. 593 OF 2015 the incriminating circumstances appearing against them in the evidence of prosecution witnesses. The accused No.1 to 3 denied the incriminating material put to them and they did not propose to examine any defence witness.
8.Heard the learned Senior Assistant Public Prosecutor and the
Defence Counsel. Perused the record.
9.Now the point that arises for determination is: 1]“Whether the prosecution proved its case against Accused No.3 beyond all reasonable doubt for the offence under sections 447 IPC?” 2]“Whether the prosecution proved its case against Accused No.1 and 2 beyond all reasonable doubt for the offence under sections 420 and 409 r/w 34 IPC?”
10.Point No.1: The allegation of prosecution against Accused No.3 is of trespass into the Apartment premises and used to park his car.
To this effect PW.1 deposed that Accused No.3 being the builder of the
Apartment used to park his car and he did not paid any rent for it.
When PW.1 himself admitted Accused No.3 as the builder of apartment, his contention of Accused no.3 trespassing into the
Apartment is not acceptable. It is not known as to for what reason
Accused No.3 used to visit the apartment. Further PW.1 admitted about Accused No.3 filing civil suit against him, besides a criminal case. When there are civil and criminal cases filed by Accused No.3 against PW1, PW.1 making the allegation of trespass falsely cannot be 5 C.C.NO. 593 OF 2015 ruled out. Ex.D1 is the copy of Judgment in O.S. 1146 of 2007 which is decreed in favour of Accused No.3. Though PW.1 preferred appeal, the decree holds good. During cross examination, PW.1 admitted
ExD2 and D3 which are relating to civil dispute pertaining to
Apartment. Further PW.1 is not the exclusive owner of the property.
In such circumstances, his contention about trespass is not acceptable. By virtue of the decree, Accused No.3 is having authority over the premises. Hence, question of trespass is not believable and acceptable. Point answered accordingly.
11.POINT: No.2 [PW1] M. Joganna is the complainant. He deposed that he lives in Leeladhar Enclave Apartment situated at
Kalyan Nagar locality and accused also live in the same apartment.
He says that Leeladhar Enclave Association is formed in the year 1997 and he is the member of the association. He says that in 2010 he observed discrepancy in the accounts of the association for which he addressed letters to the society but there was no response. He further says that in the year 2012 he was elected as General
Secretary of the association and after he took charge he sent the accounts to the Auditor for verification wherein it was found that there was misappropriation of society funds and further Accused No.3 being the builder of the apartment is not handed over the original documents relating to the property to the society even after formation of the society, besides used to park his car within the society land without authorization for which he filed complaint.
6 C.C.NO. 593 OF 2015
12. PW.1 exhibited two documents vide Ex.P2 and P3 dated 1112 2013 and 25122013. He also exhibited the account book vide
Ex.P4. Ex.P2 is the letter issued by Jaya Prakash Reddy, Chartered
Accountant to Leeladhar Enclave Flat owners association. As per the report of Chartered Accountant, it says that there was some misfeasance in the accounts of the association. Ex.P3 is the reply notice issued by one Venugopal Reddy under the instructions of one
R. Satyanarayana to one Sree latha. Ex.P2 is the document which is showing the report of Chartered Accountant relating to the accounts of the apartment. Though the report says about some discrepancy, there is no clarity in the report and there is no mention in the report as to on whose instance the Chartered Accountant issued the report.
What are the documents that were relied on by him for furnishing the report. From which year to which the accounts were audited. In the absence of any clarity with respect to the documents produced
before the Chartered Accountant, report cannot be relied upon.
Furthermore, it is not the case of prosecution that the association pertaining to the apartment has requested the Chartered accountant legally for issuance of Audit report. Hence, Ex.P2 cannot be relied upon.
13.Ex.P3 is the reply notice issued by Advocate in pursuance to the notice received. Though the documents speaks about some disputes with respect to flat owners association and funds of the society including the body of the association, PW.1 never referred to the said document in his evidence or in his complaint filed to police vide 7 C.C.NO. 593 OF 2015
Ex.P1. When there was no reference of the said document in the complaint or in the statement given to police it is highly unsafe to rely upon the alleged document.
14.During crossexamination of PW.1 learned counsel for Accused
No.1 to 3 elicited material information from PW1. During cross examination, PW.1 admitted membership of all the flat owners of the apartment in association. He also admitted about Accused No.3 filing civil suit against PW.1 vide O.S. No. 1146 of 2007 vide Ex.D1.
He also admitted pendency of Appeal before Hon’ble High Court.
PW.1 further admitted that he is not the owner of any flat in
Leeladhar Enclave Apartment. He admitted presence of a association by name Leeladhar Enclave Flat owner Association. He further admitted that in the year 2014 he got registered another
Association by name Leeladhar Enclave Flat Owners Association vide
Registration No. 473 of 2014. He admitted pendency of case vide
C.C. No. 2007/2018 filed against himself and Association members for selling of six flats.
15.According to the case of prosecution, Accused No.1 and 2 being the treasurer and Secretary of the flat owners association of Leeladhar
Enclave Apartment misappropriated the apartment association funds which were collected by the association for maintaining the apartment. Though PW.1 himself says that after he was elected as
General Secretary of the Apartment association in the year 2012, he verified the accounts of the association and found some discrepancy and when the accounts were verified by the Auditor, the Audit report 8 C.C.NO. 593 OF 2015 clarified about misappropriation of funds. Basing on the mere report of auditor, one cannot infer and believe the alleged misappropriation.
16.During crossexamination of PW.1, he admitted that he is not the owner of any flat in the apartment. In general an association for an apartment would be formed with the members of the flats of the apartment. Whoever is the member of the apartment they would form in to the assembly. They would conduct elections for electing a body so that the body would take care of the welfare of the apartment.
Similarly in the present case, a body for maintenance of Leeladhar
Enclave Flat Owners Association has been formed in the year 1998 subsequently elections were held. The body continued. In the year 2014 complainant raises suspicion against the earlier body which maintained the association. The suspicion of PW1 is that the earlier body misappropriated the association funds.
17. Absolutely no material is putforth before this court with respect to the body of association, member of the association, what was the funds that were collected by the Association and the funds that were spent by the Association. Before going to prove the misappropriation, the prosecution has to initially prove entrustment of funds by the association in favour of the accused. In the present case, there is no material on record to believe the entrustment of funds to Accused No.1 and 2. When there is no material on record to believe that Accused No.1 and 2 collected amounts from flat owners, question of misappropriation does not arise.
9 C.C.NO. 593 OF 2015
18.Section 420 reads: “Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment”.
19.In order to prove an offence under section 420 of IPC, prosecution has to establish dishonest intention on the part of
Accused No.1 and 2. Prosecution has to further establish delivery of property in favour of Accused by the victim under deception and
Accused would have converted the property delivered for their self.
Prosecution examined PW.1 Joganna for proving the above allegation of cheating. The evidence of PW.1 though says that while his tenure as General Secretary of Apartment Association, he found misappropriation of Association funds by Accused No.1 and 2, it is not acceptable in view of his admission that he is not a flat owner. No material is put forth before court to believe that PW.1 was a General
Secretary of Apartment Association and there is any clause in the bye law giving permission to a nonmember of association to contest elections. When no material is produced with respect to Association.
Funds and its profit/loss statement, the version of PW.1 cannot be accepted.
20.For proving the allegations against Accused No.1 and 2 prosecution examined PW.1 who is the complainant and material witness besides marking the complaint and Chartered Accountant 10 C.C.NO. 593 OF 2015 report. Though the oral evidence of PW.1 is in accordance with his complaint vide Ex.P1, it is not acceptable and not in accordance with the essentialities of Section 420 of IPC. The version of PW.1 that
Accused No.1 and 2 misappropriated Association funds is not acceptable in view of the material admissions elicited during his crossexamination. On the other hand, he failed to substantiate his contention with the help of relevant documents. In the absence of proof of misuse of accounts and misuse of funds by Accused No.1 and 2 in capacity of Treasurer and Secretary, prosecution case cannot be accepted.
21.According to prosecution case, the alleged misappropriation and cheating by Accused No.1 and 2 was committed while they were the
Association office bearers. It means, they must have committed the offence in capacity of office bearers. In such circumstances, the harm must have caused to an association, but not to any individual of
Apartment. In the given circumstances, a complaint in capacity of an individual shall not be maintained. The complaint must have been filed by Association or a representative of the association. In the present case, PW.1 filed the complaint in his individual capacity, but not authorized by the association which is bad. The complaint itself is not maintainable. When the act of PW.1 in filing complaint does not have concurrence from the body or association, the complaint is not acceptable and cannot be relied upon. One individual cannot be permitted to take revenge against other members of association for the reason of different groups.
11 C.C.NO. 593 OF 2015
22. In addition to the evidence of PW1, prosecution examined PW.2 and 3. The evidence of PW.2 and 2 appears to be formal. They being the Investigating officers deposed about the formal investigation conducted and in the absence of securing necessary documents in an offence under section 420 or 409 of IPC, prosecution case cannot be accepted. The material witness is PW1. However, his evidence though says about alleged misappropriation and cheating, in view of not supported by authorization, his version cannot be accepted.
23.Having considering the discussion held above this court is of the opinion that prosecution failed to prove the guilt of Accused
No.1 to 3 beyond all reasonable doubt for which they are entitled for benefit of doubt.
24.In the result, Accused No.1 and 2 are found not guilty for the offence u/s 420 and 409 r/w 34 IPC. Further Accused No.3 is found not guilty for the offence under section 447 of IPC and
Accordingly they are acquitted u/s 248(1) Cr PC. Bonds and bail bonds of Accused No.1 to 3 stands cancelled subject to section 437A
Cr.P.C.
Dictated to the Stenographer, transcribed and typed by her,
corrected and pronounced by me in the open court on this the 6th day of November, 2019.
III ADDL. CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD
12 C.C.NO. 593 OF 2015
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
FOR PROSECUTIONFOR DEFENCE
LW1/PW1 – M. Joganna, (Complainant) None – LW4/PW2 – K. Govinda Reddy – (Investigating officer) LW3/PW3 – D. Ajay Kumar (Investigating officer.
EXHIBITS MARKED ON BEHALF OF PROSECUTION
Ex.P1 – Complaint Ex.P2 – Document dated 11122015 Ex.P3 Document dated 25122015 Ex.P4 Account Book Ex.P5First Information Report
FOR DEFENCE
Ex.D1: is the copy of Judgment in O.S. 1146 of 2007 Ex.D2: Appeal suit vide A.S. No. 280 of 2011 Ex.D3: is the second appeal vide S.A. No. 37 of 2016
MATERIAL OBJECTS MARKED
Nil
III ADDL. CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD
13 C.C.NO. 593 OF 2015
CALENDER OF CASES TRIED BY III ADDL CHIEF METROPOLITAN
MAGISTRATE AT HYDERABAD
FORM NO: 71/72 OF CRIMINAL RULES OF PRACTICE
CALENDER AND JUDGMENT
C.C.NO. 593/2015 Date of offence: prior to 10.10.2013 Date of report/complaint : 10.10.2013 Date of apprehension of accused : 41A against A1&A2 21022015 Anticipatory bail 18102014 Date of release on bail : 18102014 Taking of cognizance: 26032015 Furnishing of copies to the accused: 04022016 Recording plea of the accused:04022016 Date of commencement of trial : 23.03.2018 Date of closure of trial : 18.10.2019 Examination U/Sec.313 Cr.P.C: 18.10.2019 Date of Judgment: 06.11.2019 Explanation for delay:
Name of the complainant: S.H.O., P.S.S.R. Nagar. Hyderabad. Description of the Accused
A1]Nagarimadugu Srikanth Reddy, S/o Lakshman Reddy,age: 37 years, R/o flat No. 107, Plot No. 43, R/o H.No. 83167/K/43, Leeladhar Enclave, Kalyan nagar, VentureIII, Hyderabad. A2]Rapaka Satyanarayana, S/o Veeraswamy, age: 45 years, R/o flat No. 204, Plot No. 43, R/o H.No. 83167/K/43, Leeladhar Enclave, Kalyan nagar, VentureIII, Hyderabad. A3]Leeladhar Dhuwaliaage: 65 years, Occ: Business, R/o flat No. 304, Plot No. 43, R/o H.No. 83167/K/43, Leeladhar Enclave, Kalyan nagar, VentureIII, Hyderabad. ____________________________ Offence U/Sec.: 420, 409 and 447 r/w 34 IPC Finding : Found not guilty. Result : In the result, Accused No.1 and 2 are found not guilty for the offence u/s 420 and 409 r/w 34 IPC. Further Accused No.3 is found not guilty for the offence under section 447 of IPC and Accordingly they are acquitted u/s 248(1) Cr PC. Bonds and bail bonds of Accused No.1 to 3 stands cancelled subject to section 437 A Cr.P.C.
III ADDL. CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD
To: The Hon'ble I Addl. Metropolitan Sessions Judge, Hyderabad.
Dis.No. /III ACMM/2019 Date :