IN THE HIGH COURT OF JHARKHAND AT RANCHI
GAUTAM KUMAR CHOUDHARY, J.
Surendra Prasad - Appellant
Versus
Union of India through CBI - Respondent
Cr. Appeal (S.J.) No. 1166 of 2019 with Cr. Appeal (S.J.) No. 1167 of 2019 with Cr. Appeal (S.J.) No. 1172 of 2019 with Cr. Appeal (S.J.) No. 1168 of 2019 with Cr. Appeal (S.J.) No. 1173 of 2019 with Cr. Appeal (S.J.) No. 1183 of 2019
Decided On : 15-05-2024
FRAUD - Public Procurement and Corruption - Sections 13(2), 13(1)(d) of the P.C. Act; Sections 420, 468, 471, 120B of the IPC - The court discussed the provisions of the Prevention of Corruption Act and the Indian Penal Code, emphasizing that the essence of forgery lies in the fraudulent intent and the creation of false documents. The court interpreted that wrongful loss is not a necessary element for establishing forgery, and the mere act of using forged documents suffices to constitute the offense. The court's decision was influenced by the evidence of forged invoices and the role of the engineers in certifying these documents, leading to the conviction of the contractors while acquitting the engineers due to lack of evidence of criminal intent.
Fact of the Case:
The prosecution alleged that contractors procured bitumen from unauthorized sources instead of the mandated Public Sector Unit and submitted forged invoices for payment, resulting in wrongful loss to the state. Engineers were accused of conspiring with the contractors by countersigning these invoices.
Finding of the Court:
The court found that the prosecution failed to prove that the engineers had criminal intent or knowledge of the forgery. However, it established that the contractors submitted forged invoices and received payments, constituting fraud and forgery.
Issues: Whether the contractors committed fraud and forgery by submitting forged invoices and whether the engineers conspired with them in this act.
Ratio Decidendi: The court held that the essential elements of forgery do not require proof of wrongful loss, and the mere act of using forged documents is sufficient to establish the offense. The engineers were acquitted due to insufficient evidence of their knowledge of the forgery.
Final Decision: The court affirmed the convictions of the contractors for fraud and forgery, sentencing them to one year of imprisonment and fines, while acquitting the engineers due to lack of evidence of criminal conspiracy or intent.
JUDGMENT :
GAUTAM KUMAR CHOUDHARY, J.
1. Cr. Appeal No.1168/2019, Cr. Appeal No.1173/2019, Cr. Appeal No.1183/2019 arise out of RC Case No.15(A)/2009 and Cr. Appeal No.1166/2019, Cr. Appeal No.1167/2019 and Cr. Appeal No.1172/2019 arise out of R.C. Case No.17(A)/2009-R. Since all these appeals raise common question of facts and law and therefore, they have been heard together and will be disposed of by the common judgment.
2. Gravamen of allegation as disclosed in the prosecution case of both RC Case No.15(A)/2009 and RC Case No.17(A)/2009-R is that bitumen used in road construction was not procured from Public Sector Unit (PSU) as per the terms of the work contract, but from outside sources and the payment was released to the contractors on fake and forged invoices purported to be issued by PSU.
3. Engineers Surendra Prasad and Vindhyachal Singh @ Bindhyachal Singh are alleged to have counter signed the fake bitumen invoices in criminal conspiracy with contractor Upendra Prasad for release of bills to the tune of Rs.85,91,443/- in RC Case No.17(A)/2009-R. Bitumen was procured for the execution of work contract for improvement of Bano PWD Road to Pabura Nimtur Pangur Path for 10 Kms.
4. Engineers Surendra Prasad and Onkar Prasasd Gupta are alleged to have counter signed the fake bitumen invoices in criminal conspiracy with contractor Uma Chandra Prasad Keshri for release of bills to the tune of Rs.41,95,611/- in RC Case No.15(A)/2009. Bitumen was procured for the execution of work contract for maintenance and repair of Lachargarh-Jaldega Road for 11 Kms.
CHARGE & CONVICTION
5. In both the cases Engineers and the Contractors were jointly put on trial. In 15(A)/2009 Surendra Prasad and Onkar Prasad Gupta, the then Assistant and Junior Engineers, were jointly charged under Section 13(2) read with 13(1)(d) of the P.C. Act for dishonestly and fraudulently certifying by countersigning four forged bitumen invoices submitted by co-accused Uma Chandra Prasad Keshri, the contractor and thereby facilitating the passing of bill and making payment to the contractor causing wrongful loss of Rs.6,94,196/-. Surendra Prasad and Onkar Prasad Gupta were jointly charged along with Uma Chandra Prasad Keshri, for entering into a criminal conspiracy by abusing their official position by counter signing the forged bitumen invoices and making entries in measurement books thereby committing offence punishable under Section 120B read with 420, 468 and 471 of the IPC. Uma Chandra Prasad Keshri and Surendra Prasad have been convicted in RC Case No.15(A)/2009 for offence under Section 420, 468, 471 read with 120B of the IPC and under Section 13(2) of the P.C. Act. They have also been convicted along with Onkar Prasad Gupta under these Sections and sentenced to different terms of imprisonment.
6. In RC Case No.17(A)/2009-R Surendra Prasad and Vindhyachal Singh, the then Assistant and Junior Engineers, have been jointly charged under Section 13(2) read with 13(1)(d) of the P.C. Act for dishonestly and fraudulently certifying by countersigning twelve forged bitumen invoices by co-accused Upendra Prasad, the then contractor and thereby, passing the bill and making payment to the contractor causing wrongful loss of Rs.18,15,714/-. Surendra Prasad and Vindhyachal Singh were jointly charged with Upendra Prasad for entering into a criminal conspiracy by abusing their official position by counter signing the forged bitumen invoices and making entries in measurement books thereby committing offence punishable under Section 120B read with 420, 468 and 471 of the IPC. Vindhyachal Singh and Surendra Prasad have been convicted in RC Case No.17(A)/2009-R for offence under Section 420, 468, 471 read with 120B of the IPC and under Section 13(2) of the P.C. Act. Upendra Prasad has been convicted and sentence for the offences under Section 420, 468 and 471 of the IPC.
COMMON GROUNDS OF APPEAL
7. The main plank of argument on behalf of the appellants is that prosecution has fai
A. Sivaprakash v. State of Kerala
Province of Bihar v. Surendra Prasad Ojha
AI
Wrongful loss is not a necessary ingredient for establishing the offense of forgery; the mere act of using forged documents suffices to constitute the offense.
Section 319 Cr.P.C. requires stronger evidence than prima facie for summoning additional accused; mere suspicion is insufficient.
Corruption convictions require incontrovertible evidence; mere allegations without substantial proof are insufficient for establishing public servant misconduct.
In cases of criminal conspiracy, better evidence than acts and statements of co-conspirators is hardly ever available.
(1) It is not the law that where there is any infirmity or lacuna in prosecution case, same could be cured or supplied by a false defence or a plea which is not accepted by a Court. Supposition, surm....
The prosecution must establish beyond a reasonable doubt the elements of cheating and conspiracy, including dishonest intent and the specific role of accused in the alleged fraud.
The main legal point established in the judgment is that conspiracy can be proven by circumstantial evidence, and the material on record must be evaluated to determine the existence of the ingredient....
The court established that allegations of cheating and forgery require a clear demonstration of fraudulent intent at the time of the transaction, and that the existence of a civil remedy does not pre....
In tender-related fraud cases, a conspiracy can be inferred from circumstantial evidence, allowing for charge framing even without direct evidence.
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