The power to quash criminal proceedings under Section 482 of the Code of Criminal Procedure should be exercised sparingly and with caution, and should not be used to stifle investigation or prosecution. The investigation should be allowed to reach its logical end, and the power to quash should be exercised only in rarest of rare cases.

JUDGMENT :

VINOD CHATTERJI KOUL, J.

1. Exercise of inherent powers stemming from the provisions of Section 482 of the Code of Criminal Procedure, aiming at setting at naught and quashing First Information Report no. 04 of 2020 dated 8th March 2020, lodged by Anti-Corruption Bureau (for brevity “ACB”) with a direction to respondents to restrain from interfering with the management of J&K Cooperative Bank (for short “the Bank”) or harass petitioner, is implored for in the petition on hand.

2. What is emanating from the petition on hand is that petitioner was working as Chairman in J&K State Cooperative Bank.

2.1. Petitioner claims in the petition that River Jhelum Cooperative Housing Building Society Limited, Srinagar, (hereinafter called as “the Society”) approached the Bank for grant of loan for converting land measuring 257 Kanals 18 Marlas, situated at Shivpora, Srinagar, into a Satellite Township. A representation is said to have been moved by aforesaid Society before the Bank in January 2018; process on which was going on slowly so that all formalities and other things would have been checked and verified. The Bank wanted to know status of land before taking any action on representation of Society. It is averred that a simultaneous application filed by aforesaid Society was processed by Registrar Cooperatives and that the Society also approached the Government in February 2019 for settling its case. Copy of representation of aforesaid Society was forwarded is stated to have been forwarded by Secretary, Cooperative, and on its receipt office of Registrar Cooperative forwarded the same to the Bank.

2.2. It is also maintained in the petition that case of aforesaid Society was placed before Board of Director of the Bank and in its meeting held on 21st March 2019 Board of Directors sanctioned loan in favour of the Society as was also approved by General Body on 8th September 2018 when earlier representation of the Society was processed and considered in General Body meeting of the Bank.

2.3. Petitioner has claimed that the management of the Bank, i.e. General Body as well as Board of Management, was of the opinion that project was viable one and the Bank could earn huge amount by granting the loan and therefore, the Board of Management had no option but to authorise the Committee constituted in terms of General Body decision for settling the issue. Petitioner in his capacity as Chairman of the Bank, in pursuance of General Body decision dated 8th September 2018, constituted a Committee for looking into the whole process and in terms of order dated 14th November 2018, a Committee of four officers was constituted. The General Body decision dated 8th September 2018 could not be acted upon earlier and in the meantime, Managing Director was of the opinion that because of Winter season it would not be good to release the loan amount in favour of said Society till end of financial year, i.e. 31st March 2019, therefore Board of Director meeting was again held on 21st March 2019, which approved grant of loan in favour of aforesaid Cooperative Society against the abovementioned big chunk of land and therefore, it is the decision of General Body and Board of Directorate of the Bank, which was acted upon by the Committee constituted as per decision of General Body dated 8th September 2018, issued by petitioner as Chairman of the Bank vide order dated 24th November 2018.

2.4. It is asserted by petitioner that after taking the decision, aforesaid Society was asked to execute required documents and accordingly it was being monitored by the Committee constituted and Kashmiri Pandits executed a Power of Attorney in favour of Hilal Ahmad Mir – Chairman of aforesaid Society, authorising him to transfer the land and raise finances in lieu of thereof and execute any document for creating lien in favour of Bank over the said landed property. Petitioner also avows that the Society was also authorised by Kashmiri Pandits to alienate property to any person or