STATE BY CBI Vs. H.B.R. SHETTY

JUDGEMENT

(1.) Leave granted.

(2.) The State is in appeal against an order of a learned Single Judge of Madras High Court quashing the criminal prosecution against the respondent - Shri H.B.R. Shetty who was at the relevant point of time, the Assistant General Manager of Vijaya Bank. The prosecution case was that accused No. 1, the present respondent as Assistant General Manager, recommended the sanction of the loan and forwarded the matter to the Head Office whereafter the Head Office sanctioned the loan and on the basis of the materials elicited in course of the investigation the Competent Authority has issued a sanction order dated 22nd of July, 1992 sactioning prosecution of these accused persons under the provisions of the Prevention of Corruption Act read with the provisions of Sections 120-B, 420 467 and 471 of IPC. On an application being filed by the present respondent-accused No. 1 alleging that there has been no valid sanction of the Competent Authority, the High Court by the impugned order came to the conclusion that the sanctioning Authority has not applied his mind to the relevant materials and as such the sanction is invalid. On examining the impugned order of the Sanctioning Authority more particularly the assertions made in the same to the effect that accused No. 1 Shri H.B.R. Shetty even before the receipt of the letter of the party and the branch recommendation, sent a message to the Head Office in respect of the proposal in question, it is difficult for us to sustain the ultimate conclusion arrived at by the High Court at this stage. It may be possible for the accused to establish the same in course of the trial while arguing the matter finally. But on the existing materials the conclusion of the High Court cannot be sustained and in our view the criminal prosecution on the ground of invalidity of sanction could not have been quashed. In that view of the matter, we set aside the impugned order of the High Court and direct that the trial be proceeded with.