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2018 Supreme(Mad) 1053
IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
K.V. Suresh and Others – Appellants
Versus
State by the Inspector of Police, SPE/CBI/ACB/Chennai – Respondent
Criminal Appeal Nos. 481, 484 of 2006
Decided On : 05-04-2018
For the Appellants : K.B. Arul, M. Balasubramanian, V. Gopinath.
For the Respondent: K. Srinivasan.
Headnote:
Criminal Conspiracy - Banking Fraud - Indian Penal Code, 1860, Sections 120-B, 420, 419, 477-A, 201 - Prevention of Corruption Act, 1988, Sections 13(2), 13(1)(d) - The judgment discusses the criminal conspiracy and banking fraud involving the accused A1 to A3. The court analyzed the evidence and found A1 to A3 guilty of various offenses under the Indian Penal Code and the Prevention of Corruption Act, 1988. The court also acquitted A4 to A6 from all charges.
Fact of the Case:
The case involved a criminal conspiracy and banking fraud where A1, while working as a Branch Manager, entered into a conspiracy to cheat the bank by discounting cheques in excess of the sanction limit and without sufficient funds. The Trial Court convicted A1 to A3 and acquitted A4 to A6.
Finding of the Court:
The court found A1 to A3 guilty of various offenses under the Indian Penal Code and the Prevention of Corruption Act, 1988, based on the evidence presented by the prosecution. A4 to A6 were acquitted due to lack of adequate evidence.
Issues: The main issue was whether the accused were involved in a criminal conspiracy to cheat the bank by discounting cheques and whether they had the requisite criminal intent.
Ratio Decidendi: The court held that the accused had engaged in a criminal conspiracy to cheat the bank by discounting cheques without sufficient funds and in excess of the sanction limit. The court found that the accused had not acted in good faith and had failed to exercise due diligence in their official duties.
Final Decision: The Criminal Appeals were dismissed, and the judgment of conviction passed by the Trial Court was confirmed. A1 to A3 were directed to serve the remaining period of sentence, and the period of sentence already undergone was set off.
1. These two Criminal Appeals are directed against the judgment rendered by the II Additional District Judge (CBI cases), Coimbatore in C.C. No. 4 of 2001 dated 12.05.2006. The Trial Court has convicted the accused A1 to A3 and acquitted the appellants A4 to A6. The 1st accused K.V. Suresh is the appellant in Crl. A. No. 484 of 2006. The 2nd and 3rd accused N. Robin and R. Manoharan are appellants in Crl. A. No. 481 of 2006.
2. The case of the prosecution is that on 30.09.1999, C.B.I. registered the first information report, in Crime No. RC-MA-1-1999-A0041, based on the reliable information that K.V. Suresh (A1) while working as Branch Manager in Vijaya Bank, Coonoor Branch, Niligiri District had entered into a criminal conspiracy with Ranjith Kothari, Proprietor of M/s. Ranjith Commercial Corporation Enterprises and Sri. Robin, Proprietor of M/s. Femil Enterprises, Coonoor during 1998-1999.
3. In pursuant of the said criminal conspiracy, A1 (K.V. Suresh) abusing his official position as public servant accepted and discounted the cheques/bills presented by the family members/business partners of Ranjith Kothari in the account of M/s. Ranjith Commercial Company to the extent of Rs. 45,98,312/- in excess of sanction limit of Rs. 25 lakhs and in the account of Robin groups of Company, A1 (K.V. Suresh) had discounted cheques to the extent of Rs. 31,36,116/- in violation of the powers conferred on him.
4. Based on the said information, investigation was conducted by C.B.I. and three distinct charge sheets were laid before the trial Court. The Trial Court took cognizance of offences and tried the accused in C.C. Nos. 2/99, 3/99 and 4/99.
5. In so far as, this case is concerned, it was taken on file in C.C. No. 4 of 2001. Six persons were arrayed as accused. The specific charge as against them is that A1 K.V. Suresh while working as Branch Manager, Vijaya Bank, Coonoor Branch, between 31.05.1995 and 04.01.1999 along with A2 N. Robin, Proprietor of M/s. K.M.S. Tea Mettupalayam, M/s. K.M.S. Saw Mills Timber, Mettupulayam and M/s. K.M.S. Restaurant, Mettupulayam and A3 (R. Manoharan) salesman under A2 (N. Robin), A4 (Udhuman Labbai), Branch Manager, Canara Bank, Melur, Haragatchi, Niligiri District for the period from June 1996 to June 1999, A5 (Sridharan), Clerk, Canara Bank, Haragatchi Branch and A6 (Essakiappan), Officer in Canara Bank, Haragatchi Branch have entered into a criminal conspiracy to cheat Vijaya Bank, Coonoor Branch, Niligiri District. In pursuance to the said conspiracy A2 (N. Robin) and A3 (R. Manokaran), fraudulently and dishonestly presented cheques for Rs. 3,00,697/- dated 01.09.1998, for Rs. 2,98,980/- dated 02.09.1998 both drawn by R. Manoharan (A-3) and cheques for Rs. 2,95,300/- dated 03.09.1998, for Rs. 1,78,500/- dated 07.09.1998 for Rs. 2,93,387/- dated 12.09.1998 and for Rs. 3,27,345/- dated 12.09.1998 and cheque for Rs. 50,000/- dated 15.10.1998 all drawn by A2 (Robin) without sufficient fund in their bank account maintained at Canara Bank, Melur, Haragatchi and M/s. Lakshmi Vilas Bank, Mettupulayam. On presentation of these cheques, knowing fully well that the concern account has no sufficient fund to honour the same, A1 (K.V. Suresh) without any authorization to purchase the bill had purchased the cheques presented and credited the proceeds of these cheques to a total sum of Rs. 17,48,211/- to OLCC A/c No. 2/98 of M/s. Famil Enterprises, current account of M/s. Western Enterprises, current account of M/s. R. Lawrance and Co. OD account of M/s. Akasha Enterprises, Savings Bank Account of Manoharan (A3), OLCC Account of M/s. KMS Tea, Mettupalayam owned by Robin A2 and OD account of Tea links. The money discounted after being deposited in various accounts as mentioned above, were withdrawn by A2 (Robin) and A3 (R. Manoharan) in connivance with the account holders or by impersonation. Particularly, A2 (N. Robin) impersonating himself as Ravi signed as Ravi on the reverse of the cheque (Ex.P.17) dated 1
