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2025 Supreme(Kar) 210

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
M G Uma, J.
S. Murali, S/O. Ldr G. Srinivasan (Rtd.) - Appellant
Versus
State By Central Bureau Of Investigation/Acb - Respondent
Criminal Appeal No. 1049 of 2012 (C)
Decided On : 27-06-2025

Advocates:
Advocate Appeared:
For the Appellant :Sri. Ganesh Kumar .R., Advocate
For the Respondent:Sri. P. Prasanna Kumar, Advocate

Prosecution failed to establish guilt beyond reasonable doubt, leading to the appellant's acquittal from all charges under IPC and the Prevention of Corruption Act.

Headnote:(A) Indian Penal Code - Sections 120B, 420, 468, 471 - Prevention of Corruption Act, 1988 - Sections 13(2), 13(1)(d) - Conviction and sentence of the appellant under various sections of IPC and PC Act by the Trial Court was set aside as prosecution failed to prove guilt beyond reasonable doubt. (Paras 16-18)

(B) The absence of complaints from the aggrieved banks and lack of evidence substantiating fraud committed by the appellant led to the conclusion that there was insufficient basis for conviction. (Paras 15, 16)

Facts of the case:
The appellant, a Senior Branch Manager at a bank, was accused of conspiracy to commit fraud involving several banks but there was no evidence of loss to any bank.

Findings of Court:
The appellate court determined that the Trial Court's judgment lacked justification and did not establish that the appellant's actions resulted in fraud.

Issues: The main issue was whether sufficient evidence was provided to uphold the initial convictions of the appellant.

Ratio Decidendi: The court ruled that the prosecution's case lacked evidence and no actual loss was proven, necessitating the acquittal of the appellant.

Result: The Criminal Appeal is allowed; the Judgment of Conviction and Order of Sentence is set aside, and the appellant is acquitted.

Table of Content
1. conviction based on alleged misconduct and fraud. (Para 1 , 2 , 3 , 4 , 5)
2. arguments related to the evidence and limits of authority. (Para 6 , 9 , 10 , 12 , 14 , 15)
3. rival contentions and authority under banking regulations. (Para 7 , 8)
4. court's analysis of evidence and prosecution’s insufficiency. (Para 11 , 13 , 16 , 17)
5. outcome: acquittal of the appellant. (Para 18)

JUDGMENT :

M G Uma, J.

The appellant - accused No.1 in Spl.C.C.No.103/2001, on the file of the learned XLVI Additional City Civil Judge and Sessions Judge and Special Judge for CBI case, Bangalore, is impugning the Judgment of Conviction and Order of Sentence dated 30.08.2012, convicting accused No.1 for the offences punishable under Sections 120B, 420 r/w Section 120B, 468 r/w Section 120B, 471 r/w Section 120B of INDIAN PENAL CODE (for short 'IPC') and under Section 13 (2) r/w Section 13 (1)(d) of the Prevention of Corruption Act, 1988 (for short 'PC Act') and sentenced him to undergo simple imprisonment for a period of one year with fine of Rs.2,000/- for the offence punishable under Section 120B of IPC; to undergo simple imprisonment for a period of one year with fine of Rs.2,000/- for the offence punishable under Section 420 r/w Section 120B of IPC; to undergo simple imprisonment for a period of one year with fine of Rs.2,000/- for the offence punishable under Section 468 r/w Section 120B of IPC; to undergo simple imprisonment for a period of six months for the offence punishable under Section 471 r/w Section 120B of IPC; to undergo simple imprisonment for a period of two years with fine of Rs.5,000/- for the offence punishable under Section 13 (2) read with Section 13 (1)(d) of PC Act, with default sentences.

2. Brief facts of the case as per the prosecution are that, the appellant was working as Senior Branch Manager in Syndicate Bank, Indiranagar branch, Bangalore for a period from 20.12.1990 to 25.01.1993. He conspired with accused Nos.2 to 4 to cheat Syndicate Bank, Indiranagar branch and Sriramapura Co-operative Bank Ltd, Sriramapura, by dishonestly and fraudulently accepting and endorsing cheque bearing No.24055 dated 11.01.1993 as 'good for payment' as presented by M/s. Nagaraj Leather Pvt. Ltd., and permitted withdrawal of an amount of Rs.32,78,626.50/- by discounting it before its clearance.

3. It is also the contention of the prosecution that accused No.1 accepted the cheque bearing No.434818 for Rs.40 lakhs issued by the Municipal Administration, Bangalore meant for opening an FDR in the account of Srirampuram Co- operative Bank Ltd., and dishonestly appropriated the said amount to the cheque that was presented by M/s. Nagaraj Leather Pvt. Ltd., and thereby, defrauded the Syndicate Bank, Municipal Administration, Bangalore, and also Srirampuram Co- operative Bank Ltd by using the forged documents as genuine documents. Hence, he has committed the offence of misconduct as stated above.

4. A Source Report was prepared by the Inspector of Police, CBI to contend that, the appellant in conspiracy with accused Nos. 2 to 4 had committed the offence. FIR came to be registered on the basis of the source report and investigation was undertaken. Later, final report came to be filed against accused Nos. 1 to 4.

5. The Trial Court took cognizance of the above said offences and summoned the accused. Accused has appeared before the Trial Court. He pleaded not guilty and claimed to be tried. The prosecution has examined PWs.1 to 22, got marked Ex.P1 to P59. The accused has denied all the incriminating materials available on record in his statement recorded under Section 313 of Cr.PC, but has not led any evidence in support of his defence. However, Exs.D1 and D2 got marked during cross examination of prosecution witnesses.

6. The Trial Court after taking into consideration all these materials on record, came to the conclusion that the prosecution is successful in proving the guilt of the accused No.1 beyond reasonable doubt. Accordingly, pas

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