Notes

Sumpoorna Portfolio Ltd (hereinafter referred to as "Company") a registered Company under the provisions of the erstwhile Companies Act, 1956; that the company is an Intermediary Company duly registered under the SEBI Act 1952 read with Stock Brokers and sub-brokers Regulations 1992; that the company is corporate member of both " The National Stock Exchange of India Ltd" and the Bombay Stock Exchange" providing equity broking and research services, and catering to retail clients, domestic and foreign institutional investors. The opposite party no.2 is the Director of various companies including a company namely M/s QA Infotech Pvt. Ltd. having its registered office at Gautam Buddh Nagar. The opposite party no.2 approached the applicant's company in the month of July 2016 to open a trading account in the name of "QA Infotech Pvt. Ltd" as well as for himself for the purposes of providing a trading platform in the business of purchase and sale of shares through the applicant's company. Subsequently in the year 2017-18, the opposite party no.2 introduced four persons namely 1. Monika Baid, 2. M/s Karthik Rama Krishnan (HUF), 3. Rakesh Bhansali and 4. M/s Rakesh Bhansali (HUF) as his allied and associates and got opened trading account with the applicants company under the banner of his own and allied trading accounts with dishonest intention to maliciously use the trading platform of the company to hack the market integrity for wrongful gain to himself and his introduced associates. It is noteworthy to mention that the majority of trading done by the newly introduced associates (4 in numbers) were mainly in Ashapura Intimates Fashions Ltd." during the financial year 2018-19 and the value of the entire scripts diminished drastically with the passed of time resulted in to huge debit balance in the associated accounts; that in the line of the applicants request to adjust the debit balance of the associated accounts, the opposite party no.2 executed a document titled as "authorization of funds/ securities, transfer/ adjustment in the family unit accounts" on 10.04.2019. In pursuant to the authorization dated 10.04.2019 the shares held in Ashapura Intimates Fashions Ltd. were suspended for trading in a National Stock Exchange and the outstanding debit was also naked; that in the month of October 2019 the opposite party no.2 insisted for withdrawal of his credit balance without setting off the debit balance of his associated accounts and threatened the applicants to face dire consequences.
4. It is further submitted that applicants having known the illicit motive and malafide intention of the opposite party no.2 filed a Criminal Complaint Case No. 2667 of 2019 against the opposite party no.2 and his company impleading the associated account holders as accused in the aforesaid complaint. Apart from the aforesaid criminal complaint, the applicants also filed a original suit no. 2324 of 2019 in the court of Civil Judge (Jr. Division) Gautam Buddh Nagar on 14.11.2019 claiming relief of to set off accounts against the opposite parties and his associates; that notices were issued to the opposite party in the aforesaid Civil Suit on 15.11.2019. Apart from the above mentioned two cases, the applicants company also filed two separate Arbitration Case before the National Stock Exchange Regulation 5.9 (h) of the National Stock Exchange of India Regulation.
5. It is further submitted that immediately after filing of the criminal, civil cases and Arbitration cases from the side of the applicant's company on 11.11.2019, 14.11.2019 and 18.11.2019 respectively the opposite party no.2 lodged the captioned FIR on 29.12.2019 against the applicants and one another person Naresh Agrawal (Chartered Accountant) under Section 420, 406, 467, 468, 471, 504, 506, 120-B I.P.C at police station-Phase-III, Gautam Buddh Nagar on the allegation that the accused persons has siphoned the invested money of the informant by obtaining signatures on the black documents and using them for their personal gain keeping the informant in good faith.
6. It is further submitted by learned counsel for the applicant on the basis of the statement of the informant, the Investigating Officer did not found any offence having been committed by the applicants and also found the involvement of Naresh Agrawal baseless, consequently the Investigating officer exonerated Naresh Agrawal, however, illegally and arbitrarily submitted charge sheet against the applicants under Section 420 I.P.C.
7. Submission is that the applicants' Company also filed Arbitration Cases before the National Stock Exchange of India, but the opposite party-complainant has lodged FIR registered as Case Crime No. 1450 of 2019, P.S. Phase-III, Gautam Budh Nagar, under Sections 420, 406, 467, 468, 471, 504, 506 and 120-B, IPC.
8. Denying the claim of the applicants as indicated above, learned Counsel appearing on behalf of opposite party no.2 has filed Counter Affidavit stating therein that the applicants no.1 Naresh Aggarwala represented opposite party no.2, who is the Chairman of a very large SEBI registered share broking company in Noida having its offices in other cities in the name and style of ''Sumpoorna Portfolio Limited.'; that the opposite party no. 2 was assured by applicant no.1- Naresh Aggrwala that his son (Applicant no.1) Nitesh Aggrawala is the Managing Director along with other Directors namely Rahul Yadav and Manoj Kumar; that applicants no. 1,2 and 3 opened stock trading accounts in his personal name and also in the name of Company M/S nQA Infotech Pvt. Oltd with the said stock broking company namely M/ S Sampoorna Portfolio Ltd and invested large sum of money and the said stock investments were show in in the designated DEMAT accounts as was required under the norms and the rules of the stock exchange; that the opposite party no.2 instructed applicants no. 1 to 3 collective to sell the holdings held in the said trading DEMAT accounts and to remit the amount so realised to the pre-assigned and linked bank account as the regulatory norms for which, the opposite parties were bound to remit the funds so realised within 24 hours from the time of settlement of execution of such sale in the stock exchange; that the the applicants in spite of approaching through calls, text messages, e-main and personal visits, that the amount which is more than 15.74 crores, the applicants only paid a sum of Rs. 4 crores through electronic bank transfer on 4.10.2019 and 7.10.2019 to the Company account of the opposite party no.2 and flatly showed inability to the balance due amounts due to financial difficulties and asked for some more time to make necessary arrangements in respect thereof, but after considerable long period, the opposite party no.2 came to understand the ill intents, and a big conspiracy having been hatched by the applicants against the opposite party no.2; that after various rounds of discussions and follow up on part of the opposite party no.2 the applicant no.2 Rahul Yadav, offered certain shares as collateral security, and the same was even communicated through e-mail on 8.10.2019 at around 9 in the night requesting that the balance amount due be treated as a loan to the accused-applicants/Company and repayment latest by 31.3.2020 , but as the same was not just and proper rather not acceptable to the opposite party no.2; that under nefarious design the applicants issued delivered cheque nos. 788854 and 788855 drawn on Axis Bank Sector 62, Noida on 31.3.29020 for an amount of Rs. 7, 39,00.000/- and Rs. 4,35,00,000/- respectively; that being unware of the deep rooted conspiracy, hatched by the applicants, the post dated cheques, could not be encashed and the applicants very cleverly and falsely instituted civil and criminal case against the opposite party no.2 being Complaint Case on 13.11.2019 and a suit on 15.11.2019 in the Civil Court, Gautam Budh Nagar, besides a misconceived arbitration proceeding on 18.11.2019; that aggrieved with the evil designed actions and conspiracy on the applicants, the opposite party no.2 approached the Senior Superintendent of Police, Noida who directed for preliminary enquiry and after preliminary enquiry, FIR was registered at Case Crime No. 1450 of 2019 under Sections 420,406, 467, 468,471,504,506 aud 120-B, IPC at Police Station Phase No.III, Noida.