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2016 Supreme(Mad) 563
IN THE HIGH COURT OF JUDICATURE AT MADRAS
P. DEVADASS, J.
B.R. Jayanthi & Others - Petitioners
Versus
State Represented by the Inspector of Police, Central Bureau Investigation, CBI/ACB, Chennai - Respondent
M.P.Nos. 1 & 2 of 2015 in Crl.A.No. 749 of 2015
Decided On : 17-02-2016
For the Petitioners:G. Krishnakumar, Advocate.
For the Respondent: K. Srinivasan, Special Public Prosecutor for CBI cases.
Headnote:
Criminal Procedure Code,1973 - Sections 357(2) and 389(1) – Indian Penal Code,1860 - Section 120(B) r/w.420, 468 - Anticipatory bail - Seek stay of operation – Cheating - Appeal Against conviction - They have approached Indian Bank Overseas Branch Chennai for grant of loan for their garment export business - They have produced document of a Kerala property mentioning that it measures acres and valued it at lakhs - A5 signed in guarantee letter - A6 held power deed to deal with business on behalf of A3 and A4 - Considerable amount has been sanctioned by bank - Subsequently it became a Non Performing Asset (NPA) bank opened its eyes - It looked towards property security - Final Report alleging conspiracy as between cheating and forgery was filed before trial Court -Held, Both in trial Court and here it has been submitted by petitioners that loan amount is far below however fine amount crossed a crore - It is pertinent to note that Bank is not doing any charity business is public money - It is intended for public use - Bank has to thrive - But it cannot be a private banker - Its business is being regulated by the Reserve Bank of India - Now the accused cannot dream of an amount below - Each accused has been directed to pay a fine of amount - They have already paid to complainant prior to Criminal Courts judgment - In would be reasonable to direct each appellant to deposit 50% of their fine amount in two equal installments – Order Accordingly
A3 to A6, who have been convicted and sentenced in C.C.No.23 of 2003 by the learned XI Additional Special Judge (CBI Cases), Chennai in M.P.No.2 of 2015, seeks suspension of their sentence under section 389(1) Cr.P.C. by granting them bail.
2. In M.P.No.1 of 2015, they also seek stay of the operation of the direction of the Court to pay compensation amount out of the fine amount.
3. A1 and A2 are Indian Bank officials. A7 is an approved valuer of the Bank. A2 and A7 are no more. A1 was acquitted. A3 to A6 are closely related.
4. A3 to A4 were partners of M/s.Madura International. They have approached Indian Bank, Overseas Branch, Chennai for grant of loan for their garment export business. They have produced document of a Kerala property mentioning that it measures 120 acres and valued it at Rs.150 lakhs. A5 signed in the guarantee letter. A6 held the power deed to deal with the business on behalf of A3 and A4. Considerable amount has been sanctioned by the bank. Subsequently, it became a Non Performing Asset (NPA). The bank opened its eyes. It looked towards the property security. It turned out to be only 12 acres. By the time, the loan dues rose to Rs.1,31,41, 541/-. P.W.2 lodged complaint with CBI. Case was registered. It was investigated. Final Report alleging conspiracy as between A1 to A7, cheating and forgery was filed before the trial Court.
5. Prosecution examined P.Ws.1 to 22 and marked Ex.P.1 to 108. The accused let in defence evidence. Appreciating the entire evidence, the trial court, while acquitting A1, convicted A3 to A6 and sentenced them as under :
A3 – B.R.Jayanthi - 1st appellant
| S.No. | Conviction | Sentence |
| 1. | 120(B) r/w.420, 468, 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 2. | 420 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 3. | 468 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 4. | 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. All the sentences were directed to run concurrently. |
A4 – C.Punyavathi - 2nd appellant
| S.No. | Conviction | Sentence |
| 1. | 120(B) r/w.420, 468, 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 2. | 420 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 3. | 468 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 4. | 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. All the sentences were directed to run concurrently. |
A5 – Kashinath - 3rd appellant
| S.No. | Conviction | Sentence |
| 1. | 120(B) r/w.420, 468, 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 2. | 420 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 3. | 468 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 4. | 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. All the sentences were directed to run concurrently. |
A6 – B.R.Badrinath - 4th appellant
| 1. | 120(B) r/w.420, 468, 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 2. | 420 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 3. | 468 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. |
| 4. | 471 IPC | 4 years and file of Rs.7,50,000/- in default to undergo S.I. for one year. All the sentences were directed to run concurrently. |
6. Total fine amount is Rs.30,00,000/- x 4 = Rs.1,20,00,000/-. Out of that Rs.1,13,75,000/- is directed to be paid as compensation under section 357 Cr.P.C. to the Indian Bank, Overseas Branch, Chennai.
7. The learned Senio
