JUDGMENT

(Prayer: in Crl.A.No.51 of 2013: Criminal Appeal has been filed under Section 374 of Cr.P.C., against the judgement dated, 27.12.2012 passed by the Learned XI Additional Special Judge for CBI cases, Chennai in the above C.C.No.28 of 2008 in R.C.No.4/E/2007/CBI/EOW, Chennai convicting the first accused R.Kasi and third accused D.Gunasekaran under Section 120 B r/w 420 IPC and 13 (2) r/w 13 (1)(d) of P.C Act 1988 and Section 420 IPC convicting and sentencing to undergo rigorous imprisonment for 1 year and to pay a fine of Rs.2,000/- and second appellant M.Jayabalan for an offence punishable under section 120 B r/w 420 IPC and 13(2) r/w 13(1)(d) of P.C Act 1988 convicting and sentencing to undergo rigorous imprisonment for 1 year and to pay a fine of Rs.2,000/- for the first charge of conspiracy under 120 B of I.P.C and 3 years and to pay a fine of Rs.5,000/- under section 13(2) r/w 13(1)(d) of PC Act 1988.

in Crl.A.No.82 of 2013: Criminal Appeal has been filed under Section 374 of Cr.P.C 1973, pleased to allow this appeal and set aside the judgment of conviction imposed by XI Additional Special Judge, (CBI Cases) relating to Banking & Financial Institutions, Chennai in C.C.No.28 of 2008, dated 27.12.2012 sentencing him to undergo R.I for one year and pay fine of Rs.2,000/- in default to undergo S.I for 6 months for the offence under Section 120 B r/w Section 420 of I.P.C and under Section 13(2) & 13(1)(d) of P.C Act, 1988 and also sentenced him to undergo R.I for one year and pay a fine of Rs.2,000/- in default to undergo S.I for 6 months for the offence under Section 420 of I.P.C.)

Common Judgment:

1. These two Criminal Appeals are filed against the judgment passed by XI Additional Special Court, (CBI cases relating to Banks and Financial Institutions) Chennai, in C.C.No.28 of 2008, in R.C.No.4E/2007/CBI/EOW/Chennai. Crl.A.No.51 of 2013 preferred by Kasi (A1), Jayabalan(A2) and D.Gunasekaran(A3). Crl.A.No.82 of 2013 is preferred by 4th accused/Prakash.

2. For the sake of convenience, the appellants are referred as per their ranking before the trial Court. According to the prosecution, A-1/Kasi Proprietor of M/s.Netra Infosys, A-2/Jayabalan, the Branch Manager of Indian Bank, South Usman Road Branch, Chennai. A3/D.Gunasekaran Proprietor of M/s.Sri Subramanian & Company and A4/Prakash, a person known to A-1/Kasi, with an intention to cheat the Indian Bank entered into a criminal conspiracy during the year 2005–2006. Pursuant to the conspiracy A-1 with the help of A2/Jayabalan, Branch Manager, on 01/06/2008 gave an application for opening Current Account in the name of M/s.Sam Fabricators mentioning A.L.Sam as Sole Proprietor. That application accepted by A2 and Account No.1714 was opened. Application for loan accompanied with manipulated documents made and based on the application, without verifying the genuineness of the documents. A-2/Jayabalan, sanctioned trade finance of Rs.10 lakhs to M/s.Sam Fabricators. The immovable property of one V.Kumar offered as collateral security for the loan without his consent and obtained deceitly by A-1, knowingly accepted by A-2, to create equitable mortgage for sanction of loan to cheat the bank abusing his position as a public servant. The loan amount of Rs.10 lakhs was credited into the account of M/s.Sam Fabricators on 03/06/2005. On the same day, from the Current Account No.1714 of M/s.Sam Fabricators Rs.5,80,000/- transferred to the Current Account No.1689 of M/s.Ramesh Infotech owned by one Ramesh (an accused in other connected cases). On 10/06/2005, Rs.1,16,00,00/- transferred to the account of Gunasekaran (A-3) in his current account No:1688. Rs.2,00,000/- drawn through self cheque and a cheque for Rs.1,00,000/- issued in favour of Kumar (P.W.11), who gave his property as collateral security for the subject loan.

3. Based on manipulated documents, A-2 sanctioned loan as if, he conducted inspection on 06/06/2005. After disbursement of the loan in the Current Account of M/s.Sam''s Fa