In Brief
K. Boodanathan and others appealed against the Madras High Court's order quashing criminal proceedings against S. Natarajan, an accused director of M/s PNL Nidhi Limited. The High Court had quashed the proceedings despite evidence that funds were diverted during Natarajan's directorship, causing default to depositors, and that he held controlling interest in Calfin Credit Holdings Pondicherry Limited, which benefited from the diversion. The Supreme Court held the High Court's order was not legally tenable and set it aside, allowing the criminal proceedings to proceed.",
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