CENTRAL BUREAU OF INVESTIGATION Vs. SADHU RAM SINGLA

JUDGEMENT

(1.) Leave granted.

(2.) This appeal, by special leave, has been filed assailing the judgment and order dated 2nd June, 2011 passed by the High Court of Punjab and Haryana at Chandigarh in Criminal Miscellaneous No.M-2829 of 2011, whereby the High Court while relying upon another judgment of the same High Court and on the basis of settlement of dispute, quashed the criminal proceedings against the respondents, being FIR No.SIA-2001-E-0006 dated 28.12001 under Sections 420 and 471 of Indian Penal Code [in short 'IPC'], registered at Police Station, SIU(X)/SPE/CBI, New Delhi and the criminal proceedings pending in the Court of learned Special Judicial Magistrate, CBI, Punjab, Patiala.

(3.) Brief facts of the case are as follows: M/s. Rom Industries Ltd., Mansa Road, Bhatinda (Punjab), which is respondent No.3 herein, (hereinafter referred to as the "respondent-company") was dealing with State Bank of Patiala, Bhatinda (City) Branch (for short "the Bank") since 1976 and was availing the credit limits from a consortium of banks with the Bank as leader and enjoyed total fund based credit limits from the banking system to an extent of Rs. 31,500.00 lacs in March, 1996. However, in the year 1996, due to destruction of stocks consisting of Deolided Cakes lying at Bedi Port, Jamnagar in a cyclone storm that hit Bedi Port, Jamnagar on 19/20 June, 1996, it claimed to have suffered heavy loss to the extent of Rs. 38.08 crores. The destruction of stocks could not be corroborated by any evidence. The respondent-company had been granted credit facilities against hypothecation of stocks which included stocks lying at the port. But allegedly after Bank verification of the stocks, it was found that the respondent-company had fraudulently obtained higher credit limits on the basis of stock statements which appeared forged and false. The respondent-company approached the Bank for grant of adhoc export packing credit limit of Rs. 10 crores in Feb. 1995, which was sanctioned on 09.01995.