IMPORTANT POINT
Criminal breach of trust, cheating and conspiracy – Without existence of requisite mens rea no criminal prosecution will stand.

JUDGMENT :

B.R. GAVAI, J.

1. Leave granted.

2. This appeal challenges the judgment and order dated 8th June, 2022 passed by the learned Single Bench of the High Court of Judicature at Patna in Criminal Writ Jurisdiction Case No. 1375 of 2021 wherein the learned Single Judge dismissed the Writ Petition preferred by the present appellant, HDFC Bank¹[Hereinafter referred to as the ‘appellant-bank’.], to quash the First Information Report²[‘FIR’ for short.] being Case No. 549 of 2021 registered at Gandhi Maidan Police Station, Patna on 22nd November, 2021, against certain officials of the appellant-bank working at its Exhibition Road Branch, Patna for the offences punishable under Sections 34, 37, 120B, 201, 206, 217, 406, 409, 420 and 462 of the Indian Penal Code, 1860³[‘IPC’ for short.].

3. The facts which give rise to the present appeal are as under:-

3.1 In October, 2021, Smt. Priyanka Sharma, Deputy Director of Income Tax (Investigation), Unit-2(2), Respondent No. 5 in the present proceedings, conducted a search and seizure operation in the case of several income-tax assessees including Shri Sunil Khemka (HUF), Smt. Sunita Khemka and Smt. Shivani Khemka at the third floor of Khataruka Niwas, South Gandhi Maidan, Patna. The said search and seizure operation was conducted on the basis of warrants of authorization issued under Section 132(1) of the Income Tax Act, 1961⁴ [‘IT Act’ for short.]. During the course of the search, it was found that Smt. Sunita Khemka held a bank locker bearing No. 462 in the appellant-bank at its Exhibition Road Branch, Patna.

3.2 On the basis of the said operation, on 5th October, 2021, an order under Section 132(3) of the IT Act was served upon the Branch Manager of the appellant-bank at its Exhibition Road Branch, Patna by the concerned Authorized Officer, thereby directing the said branch of the appellant-bank to stop the operation of any bank lockers, bank accounts and fixed deposits standing in the names of Shri Sunil Khemka (HUF), Smt. Sunita Khemka and Smt. Shivani Khemka, among several other individuals and entities, with immediate effect. It was further clarified that contravention of the order would render the Branch Manager liable under Section 275A of the IT Act and the same would result in penal action.

3.3 In compliance of the aforesaid order, the appellant-bank stopped the operation of the bank accounts, bank lockers and fixed deposits of the individuals/entities mentioned in the order. Further, on 7th October,2021, the appellant-bank blocked the bank accounts of the income-tax assesses named in the order and also sealed the bank locker bearing No. 462 belonging to Smt. Sunita Khemka.

3.4 Subsequently, on 1st November, 2021, Respondent No. 5 issued an order to the Branch Manager of the appellant- bank at its aforementioned branch thereby directing the appellant-bank to revoke the restraint put on the bank accounts of Smt. Sunita Khemka and three other persons, in view of the restraining order dated 5th October, 2021 passed under Section 132(3) of the IT Act. Accordingly, the said persons, including Smt. Sunita Khemka, were to be allowed to operate their bank accounts. The said order was received by the concerned Branch Manager of the appellant-bank of 8th November, 2021 at 4:00 p.m. However, on 2nd November, 2021 at 11:24 a.m., an email was sent to the Branch Manager which contained the same order.

3.5 Thereafter, on 9th November, 2021, the concerned branch of the appellant-bank allowed Smt. Sunita Khemka to operate her bank locker bearing No. 462 and proper entries recording the operation of the said locker were made in the bank’s records.

3.6 Subsequently, on 20th November, 2021, Respondent No. 5 conducted a search and seizure operation at the aforementioned bank locker in the concerned branch of the appellant-bank wherein it was found that Smt. Sunita Khemka had operated her bank locker with the assistance of the concerned officers of the appellant-bank. This was validated by the entry made i