IMPORTANT POINTS
When matter has been compromised between borrower and Bank, continuation of criminal proceedings would not be justifiable.

JUDGMENT :

B.R. GAVAI, J.

1. Leave granted.

2. The present appeals challenge the final orders dated 4th July 2023 passed by the High Court of Orissa at Cuttack in CRLMC No. 34 of 2022 and in CRLMC No. 33 of 2022, vide which the petition filed by the present appellants for quashing of criminal proceedings came to be disposed of by permitting the appellants to urge all the pleas raised in the said petition before the trial Court at the appropriate stage. The appellants had approached the High Court under Section 482 of the Code of Criminal Procedure, 1973 (“Cr.P.C.” for short) praying for quashing of the criminal proceedings in T.R. No. 28 of 2002 pending in the Court of Special Judge (CBI) Bhubaneswar (“trial Court” for short).

3. Shorn of details, the case of the prosecution is as given below.

3.1 On 14th October 2000, on the basis of information received from a reliable source, the Inspector of Police CBI/SPE Bhubaneswar registered a regular case under Section 154 of Cr.P.C. being Crime No. RCBHU 2000A0021 (“FIR” for short) against five persons namely, Ajay Kumar Behera (Accused No. 1), Surjit Sen (Accused No. 2), Kaushik Nath Ojha (Accused No. 3), Tarini Sen (Accused No. 4), Shaileshree Sen (Accused No. 5) alleging commission of offences punishable under Sections 120-B, 420, 468 and 471 of Indian Penal Code 1860 (“IPC” for short) & Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act 1988 (“PC Act” for short). The present appellants are Accused No. 4 and 5.

3.2 It was alleged in the F.I.R. that Ajay Kumar Behera while being posted as the Branch Manager in Allahabad Bank, Temple Marg Branch, Bhubaneswar (“the Bank” for short) during the year 1998-1999 entered into a criminal conspiracy with the other accused persons. At that time, Surjit Sen and Kaushik Nath Ojha were the Directors of M/s Indo Global Projects Ltd., Bhubaneswar (“IGPL” for short) and the appellants herein were Partners in M/s Clarion Travels, Bhubaneswar (“Clarion Travels” for short).

3.3 It was also alleged in the F.I.R. that on 20th November 1998, a loan application was submitted on behalf of Clarion Travels for the purpose of securing funds to purchase new cars. The loan application was signed by the present appellants on behalf of Clarion Travels. Against the said loan application, on 17th December 1998, Ajay Kumar Behera sanctioned a loan of Rs. 8,40,000/- without keeping any security or post-dated cheques. No repayment was ever made, and Ajay Kumar Behera did not pursue the same.

3.4 It was also alleged in the F.I.R. that earlier in time, on 22nd August 1998, a similar loan application was submitted on behalf of IGPL for the same purpose of securing funds to purchase new cars at a cost of Rs. 11,84,600/-. Against the said loan application, on 24th August 1998, Ajay Kumar Behera sanctioned the loan for the said amount. The money was received by Accused No. 3 and 4, who were Directors of IGPL. In furtherance of the loan application, the Accused No. 3 and 4 had also deposited 36 post-dated cheques, which when they were sent for clearing, at a later stage, by the successor of Ajay Kumar Behera bounced.

3.5 It was also alleged in the F.I.R. that, the office address disclosed by both IGPL and Clarion Travels was one and the same, i.e. 168/169-A, Bapuji Nagar, Bhubaneswar. In case of IGPL, it was also alleged that the firm Indo Global Motor from where the cars were purportedly purchased by IGPL is in fact shown as a unit of IGPL and that both of them share one and the same address being 56-A, Mancheswar Industrial Estate, Bhubaneswar. Similarly, in the case of Clarion Travels, it was also alleged that the firm M/s Kalinga Auto Centre Ltd. from where the cars were purportedly purchased by Clarion Travels also has the same address 56-A, Mancheswar Industrial Estate, Bhubaneswar.

3.6 In such facts, the matter was taken up for investigation by the Central Bureau of Investigation (“CBI” for short) and the case was registered as T.R. No. 28 of 2002 in the Cour