SURESH C. SINGAL Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The Appellants have challenged the Order dtd. 5/5/2017 passed by the learned Single Judge of the High Court of Gujarat in Special Criminal Application (Quashing) No.5629 of 2015, whereby a writ petition under Article 226 of the Constitution was preferred by the Appellants seeking quashing of FIR being RC No.13(E)/2008-CBI dtd. 8/12/2008 at Police Station, CBI, BS & FC, Mumbai as well as the charge sheet dtd. 26/5/2010 was dismissed.

(2.) The bare necessary facts in the present case are that between 1998-2005 Bank of Maharashtra sanctioned multiple credit facilities to the Appellants due to their strong financial standing. Beginning June 2005 onwards, the Appellant companies faced a financial crunch due to adverse market conditions, including the 2004 Surat floods, leading to the bank classifying their loans/credit facilities as Non-Performing Assets (hereinafter referred to as "NPA"). Bank of Maharashtra proceeded to file applications for recovery of the debt before the Debt Recovery Tribunal, Ahmedabad (hereinafter referred to as "DRT").

(3.) During the pendency of these proceedings, Central Bureau of Investigation (hereinafter referred to as "CBI") on the basis of reliable information proceeded to register the above-referred FIR against the Appellants, proforma Respondents 3 and 4 as well as the Branch Manager of the Bank of Maharashtra for offences punishable under Sec. 420, 467, 468 and 471 read with 120B of the Indian Penal Code (hereinafter referred to as "IPC") and under Sec. 13(2) read with Sec. 13(1)(d) of the Prevention of Corruption Act, 1988 (hereinafter referred to as "PC Act").