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Synopsis

While observing that there appeared an ulterior motive behind the fund misappropriation case against the Vice Chancellor of Periyar University, R Jaganathan, the Madras High Court on January 19 stayed the investigation in the case pending disposal of Jaganathan's petition for quashing the FIR against him.

The bench of Justice N Anand Venkatesh said, "Even if the allegations are taken to its extremes, at the best, it may lead to dereliction of duty on the part of the accused persons in not getting the permission/sanction of the University and the Government before entering into MOUs with four other entities".

The case against Jaganathan, a renowned academic, was filed by Salem Police following a complaint filed by I Elangovan, legal advisor of the Periyar University Employees Union (PUEU).

The complainant alleged that the Vice-Chancellor, in collusion with the Registrar, misappropriated university funds to establish the Periyar University Technology Entrepreneurship and Research Foundation (PUTER Foundation) in their own names and when they were questioned, he used filthy language using caste names.

On December 27, the Vice-Chancellor was arrested and booked under various sections of the IPC and Prevention of Atrocities (SC/ST) Act. However, later, a judicial magistrate granted him bail.

Court noted that the FIR and the materials that had been placed before it by the investigation agency did not make out any offence under Sections 120(b), 420, 468, 409, and Section 511 IPC, as alleged. 

:The allegations made are to the effect that attempt is being made to use the Company for misappropriation of money. However, there is absolutely no material to show that money was in fact transferred or misappropriated by the accused persons. Even the statement recorded by the Police from the entities with whom the MOU has been entered into, shows that there was absolutely no money transferred by anyone," the single judge bench noted. 

Court highlighted that floating of the non-profit company under Sec 8 of the Companies Act is not shrouded in secrecy and it had been made public and was very much available on the website of the Periyar University.

Further, court emphasised that the allegation regarding abuse in the name of caste, came out of the blue without any context. "This attendant fact assumes significance since an attempt has been made to add spice to the complaint to make it sound more serious," court opined. 

"The alleged abuse had taken place within a private space and it did not happen in a public place in the presence of others. Hence, no offence has been made out even under the SC/ST Act," court held. 

Furthermore, court said that insofar as the offence under Section 294(b) and 506(1), IPC, the allegations made in the FIR did not constitute any offence.

Therefore, while stating that it is the duty of the court to look into the attending circumstances, emerging from the record of the case, court stayed the investigation in the case and posted the matter after four weeks for further consideration.