P.V. Krishnaprasad v. Inspector General of Registration & Ors.
The liquidator may recover company receivables through the Chit Funds Act framework, while the EOW retains lawful powers over proceeds of crime or assets belonging to accused persons. Both functions can proceed subject to sharing records.
By CA Nikhil Gupta · Reviewed against the retained judgment 2026-09-26
The liquidator may recover company receivables through the Chit Funds Act framework, while the EOW retains lawful powers over proceeds of crime or assets belonging to accused persons. Both functions can proceed subject to sharing records. EOW directed to supply a complete document set to the liquidator within three weeks, photocopy costs to be borne by petitioner; EOW to pursue realisation and depositor distribution expeditiously.
What happened
In liquidation of a chit company, a liquidator needed documents and recoverable instalment records held by the Economic Offences Wing. Depositor protection enforcement was already underway and a prior Division Bench had upheld the EOW action.
Questions before the court
- How should liquidation collections and criminal/depositor recovery be coordinated without prejudicing statutory investigation?
Why the court ruled this way
The liquidator may recover company receivables through the Chit Funds Act framework, while the EOW retains lawful powers over proceeds of crime or assets belonging to accused persons. Both functions can proceed subject to sharing records.
Controlling point
The liquidator may recover company receivables through the Chit Funds Act framework, while the EOW retains lawful powers over proceeds of crime or assets belonging to accused persons. Both functions can proceed subject to sharing records.
Order and next steps
EOW directed to supply a complete document set to the liquidator within three weeks, photocopy costs to be borne by petitioner; EOW to pursue realisation and depositor distribution expeditiously.
Practical implications
The operative result is case-specific: EOW directed to supply a complete document set to the liquidator within three weeks, photocopy costs to be borne by petitioner; EOW to pursue realisation and depositor distribution expeditiously. Apply it within the court’s stated limit: The order does not decide ownership of each receivable or displace the EOW’s statutory control over crime proceeds.
Limits of this ruling
- The order does not decide ownership of each receivable or displace the EOW’s statutory control over crime proceeds.
Law and judgment source
- Chit Funds Act, 1982
- Tamil Nadu Protection of Interests of Depositors Act
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Source checked: 2026-09-26 · Judgment paragraphs: paragraphs 17–21 · Later case history: not verified. Verify appeals, stays and subsequent orders before reliance.
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