Point of Law: Quash of Criminal proceedings - Mere because the criminal law was set into motion on filing of a complaint, it cannot be the cardinal principle for continuity of proceedings as wherein the recovery proceedings as in civil in nature of O.A. No. 77/2003 ended in compromise

ORDER :

1. As both these petitions arise out of a common crime number, they are heard together and are disposed of by this common order.

2. Learned counsel Shri Ganesh Kumar R appears for the petitioners in Crl. Pet. No. 3817/2017 who are arraigned as Accused Nos. 6, 7, 8 and 9 in Spl. C.C. No. 243/2004 through video-conferencing. Shri Ravi B. Naik, learned Senior counsel appears for the learned counsel Smt. Vijetha R. Naik for the petitioners in Crl. Pet. No. 3819/2017 who are arraigned as Accused Nos. 1 and 5 in Spl. C.C. No. 243/2004. Both these petitions are filed by the respective petitioners seeking to quash the criminal proceedings initiated against them for offences punishable under Sections 420, 468, 471, 120B of IPC, 1860, besides Section 13(2) read with Section 13(1)(d) of the PC Act, 1988.

3. Heard the learned Senior counsel Shri Ravi B. Naik for the petitioners in Crl. Pet. No. 3819/2017, Shri Ganesh Kumar R. for the petitioners in Crl. Pet. No. 3817/2017, learned Spl. PP for the CBI Shri P. Prasanna Kumar and perused the material on record.

4. Learned counsel Shri Ganesh Kumar R has addressed his arguments by highlighting certain facts and involvement of the accused and adopting the arguments advanced by the learned Senior counsel for the petitioners in the connected matter. Further, learned Spl. P.P. Shri P. Prasanna Kumar has addressed his arguments by referring the materials secured by the I.O. during the course of investigation and laid the charge-sheet against the accused.

The epitome of the case of the prosecution is that the complainant namely one K. Venkataramaiah, Deputy General Manager, Canara Bank, Circle Office, Bangalore, had lodged a complaint against Senior Manager and Manager of Canara Bank, Jayanagar Shopping Complex Branch, Bangalore, for offences reflected in the criminal case initiated against the accused persons by the CBI.

5. The case in Cr. No. RC-4/E/2003 was registered by CBI/BSFC/BLR relating to the case in Spl. C.C. No. 243/2004. The said complaint came to be registered against nine persons, namely accused Nos. 1 to 9 and charge-sheet came to be filed against all the accused persons for offences under Sections 120B read with Sections 420, 467, 468 and 471 of the IPC and Sections 13(2) read with Section 13(1)(d). Accused No. 1 K. Prabhakar Rao is the Proprietor of M/s. Phoenix Plasts Company and Accused Nos. 2, 3 and 4 are the Production Managers, Accounts Officer and Clerk respectively working in the Company managed by Accused No. 1. But Accused No. 5 is a registered Chartered Accountant who audited and prepared returns of the Accused No. 1 Company and so also prepared returns of the said Accused No. 1 Company managed by K. Prabhakar Rao who is a Proprietor of M/s. Phoenix Plasts Company. Accused Nos. 6 to 9 were the Managers working at the relevant period at Canara Bank, Jayanagar Shopping Complex Branch, Bangalore. But the sum and substance of the charge-sheet is that all accused persons were parties to a criminal conspiracy hatched during the period 1998 to 2001 to cheat Canara Bank, Jayanagar Shopping Complex Branch, Bangalore. In pursuance of the criminal conspiracy hatched among these accused, Accused No. 1 K. Prabhakar Rao who is a Proprietor of M/s. Phoenix Plasts Company, S.S.I. Unit, engaged in the manufacture of injection moulded plastic components, having its office at No. 13 and 14, Eastern Block, Jayanagar Shopping Complex, Bangalore and a factory at Bommasandra Industrial Area, Hosur Road, Bangalore. But accused No. 1 K. Prabhakar Rao who is the Proprietor of M/s. Phoenix Plasts Company had been given various categories of credit facilities, got periodically extended working capital limits in favour of the said company by Canara Bank Jayanagar Shopping Complex Branch, Bangalore by fraudulently furnishing some bogus audited financial statements certified by Accused No. 5/B.L. Shastry, Chartered Accountant, falsely declaring huge profits as against the actual loss, reporting to t