In Brief
The Supreme Court reversed a High Court order that had quashed criminal proceedings against S. Natarajan, a former Director of M/s PNL Nidhi Limited, who was accused of diverting company funds. The High Court had reasoned that Natarajan's directorship ended in 2000 while the actual default occurred in 2004. However, the Supreme Court found this reasoning legally flawed. The Court noted that funds were diverted during Natarajan's tenure as Director to various entities, including Calfin Credit Holdings—a company in which he held controlling interest—and these diversions directly caused the subsequent default to depositors. The Court set aside the High Court's order and allowed the criminal appeals to proceed.
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