IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. Karthikeyan, J.
H. Krishnamurthy & Another – Appellants
Versus
The Inspector of Police, Central Bureau of Investigation, Special Police Establishment, Chennai & Another – Respondents
Crl.A. Nos. 630 & 635 of 2008
Decided On : 02-11-2021
Criminal Procedure Code, 1973 - Section 374(2), 207, 428 and 482 – Prevention of Corruption Act, 1988 - Section 120-B, 13(2), 13(1)(d) and 19(1)(c) - Indian Penal Code, 1860 - Sections 120-B, 420 and 477-A - Partnership Firm - False Credit Entries - Dishonoured Cheques - Loss To Bank - A partnership firm had opened a current account - It was further stated that H.Krishnamurthy made a false entry in secured overdraft account against deposits of M/s.Ramesh Cars Finance Corporation for a sum of Rs.2,00,000/- without any corresponding cheque - Subsequently, he made false credit entries in said account for Rs.5,00,000/- and Rs.3,00,000/- without corresponding instruments - Whether there was actual loss suffered to bank, in view of discounting of cheques and in view of cheques, subsequently being dishonoured – Held, When four cheques were dishonoured, A2 had immediately sold a property and had settled dues - With respect to cheques which were dishonoured, bank had sufficient security at hand - They proceeded against A2 on basis of such security before Debt Recovery Tribunal - Thus, by no stretch of imagination can it be said that there had been loss suffered by bank - Bank also realised this fact and in departmental enquiry, stated that A1 had only committed an irregularity and he had been reinstated - As a matter of fact, Ex.P115 cannot be stated to contain a confession of commission of criminal offence - There was a statement of a procedural irregularity - Security was already available - Bank could have proceeded with security and recovered amounts - But, witnesses, PW. 2 and PW.10 did not speak honestly, to put it mildly, when they grayed witness box - They denied that there was any security in bank - PW.1, who stated that particular statement before trial Court, had actually signed verification of Debt Recovery Application marked as Ex.D2, claiming that securities have been given and asking for sale of securities to cover default amount - Thus, prosecution, unfortunately, had to rely on witnesses, who did not think it fit to speak truth before Court - In view of above reasons, Court hold that conviction against A1 and A2 will, necessarily, have to be interfered with - Appeals allowed.
JUDGMENT :
(Prayer in Crl.A.No.630 of 2008: Criminal Appeal filed under Section 374(2) Cr.P.C., to set aside the impugned judgment, dated 20.08.2008 in C.C.No.7 of 1999, passed by the learned IX Additional Sessions Judge (Special Judge for C.B.I cases) at Chennai.
Crl.A.No.635 of 2008: Criminal Appeal filed under Section 374(2) Cr.P.C., to set aside the impugned judgment, dated 20.08.2008 in C.C.No.7 of 1999, passed by the learned IX Additional Special Judge for C.B.I., at Chennai and set the appellant at liberty by acquitting him of all the charges.)
1. Crl.A.No.630 of 2008 had been filed by A1 and Crl.A.No.635 of 2008 had been filed by A2 in C.C.No.7 of 1999, questioning the judgment, dated 20.08.2008, passed by the learned IX Additional Sessions Judge (Special Judge for C.B.I Cases), Chennai, convicting and sentencing them for commission of offences punishable under Section 120-B IPC r/w 420 IPC, 477-A I.P.C, 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 and under Sections 120-B IPC, 420 I.P.C.
2. A1/H.Krishnamurthy/appellant in Crl.A.No.630 of 2008 was Branch Manager of Andhra Bank in Triplicane Branch during the years 1993 - 1996. A2/K.Ramesh/appellant in Crl.A.No.635 of2008 is a private individual, who was running a firm by name M/s.Ramesh Cars Private Limited., in Chennai and was holding a current account with Andhra Bank, Triplicane Branch.
3. A complaint, dated 19.12.1996 was given by the Assistant General Manager of Andhra Bank Zonal Office, Chennai to the Inspector of Police, C.B.I/A.C.B, Chennai in which it had been stated that M/s.Ramesh Cars Finance Corporation, a partnership firm had opened a current account No.1307 with Triplicane Branch of Andhra Bank on 04.04.1996. The account was converted into a secured overdraft account against deposits on 23.07.1996. It was stated that H.Krishnamurthy, the Branch Manager had accommodated the self cheques of M/s.Ramesh Cars Finance Corporation on 14.10.1996 for Rs.4,50,000/- drawn on Indian Bank, Alwarpet Branch and had given credit into their account. In the same manner, again on 22.11.1996, he accepted a self cheque for Rs.7,00,000/- drawn on the same bank of M/s.Ramesh Cars Finance Corporation and credited the same into the secured overdraft account. Again on 23.11.1996, another cheque issued in favour of Ramesh Cars Finance Corporation by a savings bank account holder bearing Account No.7099 of State Bank of India, Adyar Branch, dated 18.11.1996 for Rs.2,50,000/- was accepted by him and had given credit on the same day. It was complained that H.Krishnamurthy, instead of sending the above instruments for local clearing account, had kept the same with him in order to facilitate M/s.Ramesh Cars Finance Corporation to get pecuniary advantage.
4. It was further stated that H.Krishnamurthy on 10.10.1996 made a false entry in the secured overdraft account against the deposits of M/s.Ramesh Cars Finance Corporation for a sum of Rs.2,00,000/- without any corresponding cheque. Subsequently, on 08.11.1996 and 13.11.1996, he made false credit entries in the said account for Rs.5,00,000/- and Rs.3,00,000/- without corresponding instruments.
5. It was also stated that he had accepted four cheques issued by M/s.Reddy and Sons, Oxford College of Advanced Studies and T.Nagar Citizens Benefit Fund Limited in favour of M/s.Ramesh Cars Finance Corporation and made credit entries into the said account and thereafter, sent the instruments for clearing. The cheques were returned unpaid. But he failed to make debit entries in the account of M/s.Ramesh Cars Finance Corporation and kept the instruments with him and failed to inform his higher officials and it was stated, he had thus, caused wrongful gain to M/s.Ramesh Cars Finance Corporation and corresponding wrongful loss to the bank.
6. It was further stated that H.Krishnamurthy had entered into criminal conspiracy with M/s.Ramesh C
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