SUPREME COURT OF INDIA
M.M. Dutt, S. Ratnavel Pandian and T.K. Thommen. JJ.
State of D.P. through C.B.I. - Petitioner
versus
R.K. Srivastava & anr. - Respondents
Crl. Appeals Nos. 380 of 1989 and 323 of 1988
Both Decided on 11-8-1989
Held: It is manifestly clear from the allegations in the F.I.R. that the respondent or the other accused had no intention whatsoever to make any wrongful gain or to make any wrongful loss of the Bank. They had accepted the said three cheques amounting to Rs. 54,600/- and sent the same for clearance after debiting the LOC account. The said cheques have been encashed and the money was received by the State Bank of India. It may be that there was some delay in crediting the LOC account or that the money against the three cheques were credited in the accounts of the said Shri Sarwant Singh and his wife, but the allegations made either in the F.I.R. or in the charge-sheet do not show that the respondent and the said P.C. Saxena had acted dishonestly, that is to say, acted with a deliberate intention to cause wrongful gain or wrongful loss. In our opinion, the High Court has rightly held that the allegations made in the F.I.R. do not constitute any offence of cheating, nor do they constitute any offence of forgery. It is true that it has been alleged that the said sum of Rs. 54,600/- was withdrawn on the basis of false credit entries made in the books of accounts of the Bank and connected credit and debit vouchers were also prepared and passed by the respondent and the other accused. When the said sum", of Rs. 54,600/- had been allowed to be withdrawn by the said Shri Sarwant Singh and his wife, necessary entries had to be made in the books of accounts, but it is not understandable how these entries can be characterised as false entries. No document has been referred to in the F.I.R. as the outcome of forgery. (Para 4)
Result: Order accordingly.
JUDGMENT
Dutt, J.- These two appeals by special leave, one preferred by the State of U.P. and the other by the State Bank of India are directed against the judgment of the Allahabad High Court whereby the High Court has quashed the criminal proceedings being Crime Case No 40 of 1983 in the Court of Special Judge, Anti-Corruption, only as against the respondent R.K. Srivastava. In quashing the proceedings in the exercise of its jurisdiction under Section 482 of the Criminal Procedure Code, the High Court took the view that allegations made in the First Information Report did not constitute any offence. In order to appreciate the view of the High Court, it is necessary to refer to the F.I.R. which reads as follows:
"An information has been received that Shri P.C. Saxena and Shri Ram Kumar Srivastava while posted and functioning as Accountant and Clerk-cum-Godown Keeper in the State Bank of India, Agriculture Development Branch, Budaun, respectively entered into a criminal conspiracy with Shri Sarwant Singh and his wife Smt. Rajwant Kaur, Props. of M/s. National Mill Store, Budaun, during the month of June, 1982 to cheat the State Bank of India, Budaun, and in pursuance of the said criminal conspiracy an amount of Rs. 54,600/- was withdrawn on the basis of false credit entry made in the books of accounts of the Bank and connected credit and debit vouchers were also prepared and passed by the accused employees of the Bank and payments were made to the accused persons, namely, Shri Sarwant Singh and Smt. Rajwant Kaur who tendered cheque No, 348459 dated 2-5-1982 for Rs. 18,600/- and cheque No. 502206 dated 2-6-1982 for Rs. 16,800/- = Rs. 54,600/-.
The above facts constitute offence punishable under Sections 120-B, 420, 468 and 471 of the Indian Penal Code and Section 5(2) r/w. Section 5(1)(d) of P.C Act, 1947.
A regular case is therefore registered and its investigation is entrusted to Shri V.P. Arya, Inspector of this establishment. "
According to the F.I.R., as against three cheques of the aggregate amount of Rs. 54,600/-, presumably of three different Banks, a credit entry was made in the accounts of M/s. National Mill Stores Company, Budaun, and M/s. New Manufacturing Company, Budaun, land their partners, Sardar Sarwant Singh and his wife Smt. Rajwant Kaur, in the State Bank of India and the said sum of Rs. 54,600/- was allowed to be withdrawn by them by the respondents and the accused P.C. Saxena.
2. The allegations in the F.I.R. appear to be vague and although it is alleged that the respondent and the accused P.C. Saxena made false credit entries in the books of accounts of the Bank and connected credit and debit vouchers were also prepared and passed by them, no particulars of the same have been given. It appears from the charge-sheet that the said Shri Sarwant Singh and his wife Smt. Rajwant Kaur and their firms, namely, M/s. National Mill Stores Company, Budaun, and M/s. New Manufacturing Company, Budaun, have current accounts in the State Bank of India, Budaun. After the said three cheques amounting to Rs. 54,600/- were tendered, the respondent and the accused P.C. Saxena sent the said cheques for clearance and allowed the said Shri Sarwant Singh and his wife Smt. Rajwant Kaur to with draw the sum of Rs. 54,600/- from their current account.
3. It is now a well settled principle, of law that if the allegations made in the F.I.R. are taken at their face value and accepted in their entirety do not constitute an offence, the criminal proceedings instituted on the basis of such F.I.R. should be quashed. In the instant case, an the basis of the said F.I.R. the respondent and the said P.C. Saxena and Shri Sarwant Singh were charged under Sections 120-B, 420, 468 and 471 of the Indian Penal Code and Section 5(2) read with Section 5(1)( d) of the Prevention of Corruption Act, 1947. According to the appellant, as no prima facie case was made out against Smt. Rajwant Kaur, wife of Shri Sarwant Singh, she has been dropped from the
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