IMPORTANT POINT
Further investigation is not altogether ruled out merely because cognizance of the case has been taken by the Court.

JUDGMENT

U.P., Wadhwa, J. - The petitioner along with Amarjit Singh is facing trial for offences under section 120B read with sections 420, 467, 468 and 471 I.P.C. and also for substantive offences punishable under sections 420 and 471 read with section 467 I.P.C. The chargesheet under section 173(2) of the Code of Criminal Procedure 1973 (for short 'the Code') was filed on 29-5-1985 in the Court of the Chief Metropolitan Magistrate (for short 'the CMM'), during the pendency of the present petition which is under section 439 of the Code.

2. An F.I.R. being R.C. No. 1/85 was registered on 1.3.1985 at 5.00 p.m. against the petitioner and others under sections 120B, 420, 467, 468 and 471 I.P.C. This was under section 154 of the Code. It is mentioned in this F.I.R. that the petitioner, an Indian national, based in the U.K. (London) was the Managing Director of certain group companies and during the period 1982-1984 conspired with certain employees, namely, Ashish Banarjee and Rajender Kumar Batodia and certain officials of the Punjab National Bank, Union Bank of India and Central Bank of India and other institutions based in U.K. and some other countries to defraud these banks/institutions to the tune of millions of pounds sterling. It is then said that in pursuance of the said criminal conspiracy, these banks and institutions were dishonestly induced by the petitioner and his associates to extend loans to the group of companies controlled by the petitioner in respect of alleged contracts with the Nigerian National Supply Corporation and other African Bodies which did not have sufficient foreign exchange reserves required prior to the grant of such loans. It was then stated that such loans were reported to have been obtained on the strength of false representations regarding the value of assets held by the petitioner to meet the amounts of the loans.

3. The petitioner was arrested on 1-3-1985 itself at about 10.15 p.m. outside Maurya Sheraton Hotel, New Delhi, where be was staying. His room in the hotel was searched. One passport being No. W-900509 in the name of R.K. Dugar in which the photograph of the petitioner had been pasted was recovered. Certain other documents including one return air ticket of Swiss Air ex-Calcutta-Delhi-Bombay Cairo-Geneva-New York-Geneva-Bombay - Calcutta, and travelers cheques of the value of US $ 500/- were also recovered. These documents were again in the name of R.K. Dugar. During the course of investigation, Amarjit Singh, the then General Manager of the Punjab National Bank Branch at London, was also arrested on 16-3-1985 at New Delhi. He was staying in Maharani Guest House, Sunder Nagar, New Delhi, at that time. During the course of search of his room in the guest home, certain documents were recovered, one of which was a photo album which showed that Amarjit Singh and the petitioner were quite close to each other. Investigations revealed that apart from other bills, the petitioner in conspiracy with Amarjit Singh co-accused had also submitted false and forged bills to the tune of US $ 10.4 millions drawn on In-House Company based at Hong Kong. The chargesheet which has been filed in the present case relates to the offences committed in respect of these transactions involving US $ 10.4 millions.

4. The prosecution case, in brief, is that the petitioner was the Chairman of Esal Group of Companies since 28-3-1977. Amarjit Singh had been posted to the Punjab National Bank Branch, London and had been working in various capacities including that of the General Manager since 30-6-1980. The principal company in this group was Esal (Commodities) Ltd. London (for short 'ESAL') which bad various accounts with the Punjab National Bank at London. One of the accounts was Dollars Merchanting Account. Amarjit Singh had issued specific instructions to all officers of the Punjab National Bank giving guidelines in respect of loan accounts etc. He had strictly warned his staff that no facilities even within the ex