Advocates:
ARVIND KUMAR SHARMAASHOK PANIGRAHI

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JUDGMENT

REPORTABLE

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL

APPEAL

NO.

1460

OF

2012

(Arising out of S.L.P. (Crl.) No. 6975 of 2011)

Central Bureau of Investigation, Hyderabad .... Appellant(s)

Versus

K. Narayana Rao

.... Respondent(s)

J U D G M

E N T

P.Sathasivam,J.

1)

Leave granted.

2)

This appeal is directed against the final judgment and

order dated 09.07.2010 passed by the High Court of

Judicature, Andhra Pradesh at Hyderabad in Criminal Petition

No. 2347 of 2008 whereby the High Court allowed the petition

filed by the respondent herein under Section 482 of the Code of

Criminal Procedure, 1973 (in short “the Code”) and quashed

the criminal proceedings pending against him in CC No. 44 of

2007 (Crime No. 36 of 2005) on the file of the Special Judge for

CBI cases, Hyderabad.

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JUDGMENT

3)

Brief facts:

(a)

According to the prosecution, basing on an information,

on 30.11.2005, the CBI, Hyderabad registered an FIR being RC

32(A)/2005 against Shri P. Radha Gopal Reddy (A-1) and Shri

Udaya Sankar (A-2), the then Branch Manager and the

Assistant

Manager,

respectively

of

the

Vijaya

Bank,

Narayanaguda Branch, Hyderabad, for the commission of

offence punishable under Sections 120-B, 419, 420, 467, 468

471 read with Section 109 of the Indian Penal Code, 1860 (in

short ‘the IPC’) and Section 13(2) read with Section 13(1)(d) of

the Prevention of Corruption Act, 1988 for abusing their official

position as public servants and for having conspired with

private individuals, viz., Shri P.Y. Kondala Rao – the builder

(A-3) and Shri N.S. Sanjeeva Rao (A-4) and other unknown

persons

for

defrauding

the

bank

by

sanctioning

and

disbursement of housing loans to 22 borrowers in violation of

the Bank’s rules and guidelines and thereby caused wrongful

loss of Rs. 1.27 crores to the Bank and corresponding gain for

themselves. In furtherance of the said conspiracy, A-2

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JUDGMENT

conducted the pre-sanction inspection in respect of 22 housing

loans and A-1 sanctioned the same.

(b)

After completion of the investigation, the CBI filed charge

sheet along with the list of witnesses and the list of documents

against all the accused persons. In the said charge sheet, Shri

K. Narayana Rao, the respondent herein, who is a legal

practitioner and a panel advocate for the Vijaya Bank, was also

arrayed as A-6. The duty of the respondent herein as a panel

advocate was to verify the documents and to give legal opinion.

The allegation against him is that he gave false legal opinion in

respect of 10 housing loans. It has been specifically alleged in

the charge sheet that the respondent herein (A-6) and Mr. K.C.

Ramdas (A-7)-the valuer have failed to point out the actual

ownership of the properties and to bring out the ownership

details and name of the apartments in their reports and also

the falsity in the permissions for construction issued by the

Municipal Authorities.

(c)

Being aggrieved, the respondent herein (A-6) filed a

petition being Criminal Petition No. 2347 of 2008 under

Section 482 of the Code before the High Court of Andhra

Pradesh at Hyderabad for quashing of the criminal proceedings

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JUDGMENT

in CC No. 44 of 2007 on the file of the Special Judge for CBI

Cases, Hyderabad. By impugned judgment and order dated

09.07.2010, the High Court quashed the proceedings insofar

as the respondent herein (A-6) is concerned.

(d)

Being aggrieved, the CBI, Hyderabad filed this appeal by

way of special leave.

4)

Heard Mr. H.P. Raval, learned Additional Solicitor

General for the appellant-CBI and Mr. R. Venkataramani,

learned senior counsel for the respondent (A-6).

5)

After taking us through the allegations in the charge

sheet presented before the special Court and all other relevant

materials,

the

learned

ASG

has

raised

the

following

contentions:

(