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High Court of Kerala
THE HONOURABLE MR. JUSTICE V. RAMKUMAR
Rajeevan
Versus
C.B.I.
Crl Appeal Nos. 295(C), 296, 304, 305,307,315 & 316 of 2000
Decided on : 18-02-2011
The court acquitted the appellants of the charges of criminal conspiracy, cheating, and forgery under Sections 120 B, 420, and 468 of the Indian Penal Code (IPC) and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act (P.C. Act).
Fact of the Case:
The case involved three separate loan applications submitted to Punjab National Bank (PNB) by different individuals, each involving allegations of false loan applications, forged quotations, and misappropriation of funds. The common first accused, Joseph Alappatt, was the Branch Manager of PNB during the relevant period and was charged in all three cases.
Finding of the Court:
The court found that the prosecution failed to prove beyond a reasonable doubt that the appellants had engaged in any criminal conspiracy or had acted with dishonest or fraudulent intent. The court noted that the loans were granted on the strength of collateral security and after conducting proper enquiries and pre-sanction inspections, and that the appellants had acted on the recommendation of a senior officer who had conducted the pre-sanction inspections and prepared the confidential reports.
Issues: The main issues considered by the court were: 1. Whether the prosecution had established a criminal conspiracy among the appellants to cheat PNB. 2. Whether the loan applications submitted by the appellants were false and fraudulent. 3. Whether the appellants had misappropriated the loan funds.
Ratio Decidendi: The court held that the prosecution had failed to establish the essential elements of the offenses charged. The court found that the appellants had acted in good faith and had relied on the recommendations of a senior officer who had conducted the pre-sanction inspections and prepared the confidential reports. The court also found that the loans were granted on the strength of collateral security and that there was no evidence of any misappropriation of funds.
Final Decision: The court acquitted the appellants of all charges.
COMMON JUDGMENT
These appeals filed under Sec. 374 (2) Cr.P.C. arise out of the common judgment dated 28-4-2000 on the file of the Court of the Special Judge (SPE/CBI) - 1, Ernakulam (hereinafter referred to as the "Special Court" in C.C. Nos. 9, 10 and 11 of 1993. Two of the accused in two of the aforesaid C.C. Cases are common. In C.C. 9 of 1993 there were three accused persons and in C.C. Nos. 10 and 11 of 1993 there were two accused persons. The first accused in all the three cases namely Joseph Alappatt is a common accused. The appeals filed by the said common first accused in C.C. Nos. 9, 10 and 11 of 1993 are Crl.Appeals 307, 315 and 316 of 2000. Crl. Appeal 304 of 2000 is filed by the 2nd accused (H.Vahab) in C.C. 9 of 1993. Crl.Appeal No. 295 of 2000 is filed by the 3rd accused (Rajeevan) in C.C. 9 of 1993). Crl.A. 305 of 2000 is filed by the 2nd accused (K.Thajudheen @ Thaju) in C.C. 10 of 1993. Crl.A. 296 of 2000 is filed by the 2nd accused (Rajeevan) in C.C. 11 of 1993.
PROSECUTION CASE IN C.C. 9 OF 1993
2. The case of the prosecution in C.C. 9 of 1993 is as follows:-
A1 (Joseph Alappatt) was working as the Manager of the Quilon Branch of the Punjab National Bank ("PNB"for short) during the period 1988-1990 and was competent to sanction term loans. He was responsible for conducting pre-sanction inspection of the units/premises of the applicants for loan for ascertaining the genuineness of the application and eligibility of the applicants before sanctioning the loan. Some time during October 1989 A1(Joseph Alappatt), A2 (H.Vahab) and A3 (Rajeevan) entered into a criminal conspiracy to cheat PNB. In pursuance of the said criminal conspiracy, A2 representing the firm Salim Agencies filed a false loan application before PNB for a term loan of Rs. 1,50,000/- on 7-10-1989 to operate a shop for hiring steel tables and chairs. Along with the loan application A2 had enclosed a quotation from "Distributors Quilon" at Kadappakkada, a non-existing firm purportedly represented by A3 Rajeevan for the supply of folding chairs and folding tables for Rs. 2,04,375/-. On 7-10-1989 itself A1 sanctioned the loan fully knowing that the loan application was false. A1 issued pay orders for Rs. 1,44,375/- dated 7-10-1989 and Rs. 60,000/- dated 16-10-1989 including the margin money of Rs.54,375/-remitted by the loanee in favour of "Distributors Quilon". In pursuance of the said conspiracy A3 Rajeevan opened an account in the name of "Distributors Quilon" in the Quilon branch of the Dhanalakshmi Bank and credited the said pay orders in the said account and withdrew the credited amounts by means of cheques dated 11-10-1989 for Rs. 70,000/- and Rs. 74,000/- and by cheque dated 17-10-1989 for Rs.60,000/-. A3 was not doing any steel furniture business at Kadappakkada under the name and style of "Distributors Quilon". He was actually running a Saw Mill at Quilon. He had not supplied any steel table or folding chairs to A2 and A2 had appropriated the loan amount with the assistance of A3. The quotation in the name of "Distributors Quilon", a non-existing firm was forged by A3 on or about 7-10-1989 intending that it shall be used for the purpose of cheating PNB. A1 (Joseph Alappat) being a public servant, in his capacity as the Manager of PNB, on or about 7-10-1989 by corrupt or illegal means or by otherwise abusing his position as such public servant, obtained for A2 pecuniary advantage to the extent of Rs. 1,50,000/-by sanctioning the said amount as loan from PNB acting on the false loan application submitted by A2 and by issuing the pay orders for Rs. 1,44,375/- and Rs.60,000/-in favour of "Distributors Quilon", which were encashed by A2 with the assistance of A3. A1 to A3 thereby committed offences punishable under Sections 120 B, 420 and 468
I.P.C. and Sec. 13 (2) read with Sec. 13 (1)(d) of the Prevention of Corruption Act, 1988 ("the P.C. Act" for short).
PROSECUTION CASE IN C.C. 10 OF 1993
3. The case of the prosecution in C.
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