IMPORTANT POINT
The court affirmed that bank executives are public servants under the Prevention of Corruption Act, liable for prosecution for misconduct.

JUDGMENT :

E.V. VENUGOPAL, J.

1. Both these criminal revision cases are preferred under Sections 397 and 401 of Criminal Procedure Code (for short ‘Cr.P.C.’) by the petitioner/Central Bureau of Investigation (for short ‘CBI’) aggrieved by the common order dated 10.03.2010 passed in Crl. M.P. Nos. 3214 of 2008 and 3215 of 2008 both in CC No. 21 of 2008, on the file of the learned Special Judge for CBI Cases, Hyderabad wherein and whereunder the accused Nos.1 and 2 i.e. the respondents herein were discharged from the offence under Section 13(2) read with Section 13(1)(d) of Prevention of Corruption Act, 1988 (for short ‘PC Act’) in the said calendar case.

2. Heard Smt. Anandi, learned Special Public Prosecutor appearing for CBI/petitioner and Sri L. Ravi Chander, learned senior counsel appearing for the respondent in Crl. R.C. No. 365 of 2011 and Sri E. Umamaheshwar Rao, learned counsel representing on behalf of Sri C. Sharan Reddy, learned counsel for the respondent in Crl. R.C. No. 406 of 2011. Perused the record.

3. CC No. 21 of 2008 on the file of the learned Special Judge for CBI Cases, Hyderabad has arisen out of the crime in RC No. 6(E) of 2005, registered by the petitioner against the respondents herein, who are the accused Nos.1 and 2 and others, who arrayed as accused Nos. 3 to 6 for the offences under Sections 409, 420, 467, 468, 471 of Indian Penal Code (for short ‘IPC’) and Section 13(2) read with Section 13(1)(d) of PC Act alleging that the respondents being the public servants in the capacity of Chairman and Managing Director and Executive Director of erstwhile Global Trust Bank, between the years 1994 and 2003, conspired with accused Nos. 3 to 6, cheated the said bank in the matter of recommending/sanctioning/disbursing/availing huge credit facilities by dishonestly and fraudulently inducing the bank to part with its funds in the form of letter of credits and bills discounting facility with false and fabricated bills and also in the matter of recommending/sanctioning/disbursing and availing the enhanced limit without adequate security, causing misutilization/diversion of funds and also pecuniary advantage to themselves and pecuniary loss to the bank since the said amounts became irrecoverable and in such process, the bank suffered the loss to a tune of Rs.10.25 crores.

4. The petitioner, after completion of investigation, laid charge-sheet against the respondents herein and others for the offences referred supra. The learned Special Judge for CBI Cases, Hyderabad took cognizance of the said offences and assigned CC No. 21 of 2008 and proceeded further.

5. While the things stood thus, the respondents herein filed Crl. M.P. Nos. 3214 and 3215 of 2008 under Section 239 of Cr.P.C. seeking discharge. The Court below, upon hearing both sides and perusing the material placed before it, discharged the respondents herein from the offence under Section 13(2) read with 13(1)(d) of PC Act only in CC No. 21 of 2008 holding that the orders passed by the High Court of Mumbai in Crl. Writ Petition Nos.2401 of 2008, 2402 of 2008 and 2403 of 2008 in Criminal Revision Application No. 131 of 2007 pertaining to the respondents herein stating that they cannot come under the definition of public servants and the offences under PC Act cannot be levelled against them are binding on the learned Special Judge for CBI Cases, Hyderabad. While giving such findings, the learned Principal Special Judge for CBI Cases, Hyderabad directed the Investigating Officer to take back the charge-sheet along with documents and statements to file the same before appropriate Court against the accused for relevant offences other than the offences under PC Act.

6. Aggrieved by the said findings, the petitioner/CBI filed the present criminal revision cases mainly contending that the respondents are the public servants as denoted in the provisions of PC Act, especially under Sections 2(b) and 2(c)(viiii), Banking Regulation Act, 1949 and also the provisions of Preventi