MAYANK N SHAH Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This criminal appeal is filed by the accused no.4, aggrieved by the judgment dated 16.10.2008, passed in Criminal Appeal No.324 of 1987, by the High Court of Gujarat at Ahmedabad, confirming the judgment and order of conviction dated 02.04.1987 passed by the learned Special Judge, Ahmedabad in Special Case No.13 of 1979.

(2.) On 21.07.1976, a complaint was lodged by Divisional Manager, Central Bank of India, Ahmedabad with the Superintendent of Police, Central Bureau of Investigation, Ahmedabad against the appellant/accused no.4 and four others which came to be registered as C.R. No.43 of 1976. It was alleged in the complaint that M/s. New Russian Automobiles is a registered partnership firm engaged in the business of manufacturing crank-shafts for jeeps, ambassador cars, tractors, diesel engines etc., from their manufacturing unit at plot bearing no.155, C1-B/3 situated in Industrial Area, Naroda Taluka of Ahmedabad District. It was alleged that during the relevant time accused no.1 was serving as Branch Manager of Central Bank of India, Ahmedabad, whereas accused nos.2 and 3 were partners of M/s. New Russian Automobiles along with two others. As per the complaint, appellant herein/accused no.4 was at the relevant time serving as Chief Manager (Operations) with the firm and accused no.5 was serving as office Superintendent. It was further stated in the complaint that original accused no.2 applied to the Central Bank of India for availing certain loan facilities for the firm. Accordingly, various facilities such as Term Loan facility, Cash Credit Open Loan facility, Usance Bills facility, Clean Endorsed Out-stationed Third Parties Cheques Discounting facility etc. were extended from time to time at the instance of accused no.1. According to the complainant, accused no.2 apart from being a partner in the partnership firm, had also floated three other fictitious proprietary concerns at Bombay, i.e., (i) M/s. Technical Export Import Association; (ii) M/s. Alloy Steel Corporation; and (iii) M/s. Auto Parts Centre. It was further the case of the complainant that under the Usance Bills facility, the partnership firm used to offer its bills drawn on different outstation parties and along with the said bills they have produced railway receipt, motor receipt, invoices for the value of the goods sold to the parties and also the hundis drawn upon the purchases and all the said documents were signed by accused nos.2 to 5. On such presentation, bank used to grant credit facility by forwarding the bills with necessary documents to the out-stationed bankers named in the bill and the out-stationed parties used to accept the hundis for the value of goods sent along with the bill and the out-stationed bank used to deliver to the said party railway receipt or motor receipt along with the invoices. As stated in the complaint, the out-stationed parties then used to pay up the amount of hundis to their partner within the time fixed by the hundis and such bankers used to send necessary amount to the Central Bank, Gheekanta Branch, Ahmedabad. It was the allegation in the complaint that all the accused persons hatched a conspiracy to cheat the bank and they managed to get fake motor receipts alleged to have been issued by one Bombay General Freight Carriers Pvt. Ltd., Bombay. As alleged in the complaint, the appellant/accused no.4 and accused no.5 presented to the bank 25 bills for the total amount of Rs.18,57,064.40 during the period from October 1975 to March 1976 and in the said manner, the firm has availed the credit facility from the bank against such bills, by presenting fake transport receipts. It is alleged that on certain occasions forged receipts were produced with Out-stationed Bills Discounted (O.B.D.) and Bills Purchased (B.P.) and in all 25 bills were presented with forged motor transport receipts and out of the said bills, 11 bills totalling to Rs.6,02,160/- were drawn upon a fictitious firm, namely, M/s. Auto Parts Centre, of which accused no.2 was the sole proprietor. It is alleged, the accused nos.2 to 5 by making false or misleading representation with fraudulent and dishonest inducement, cheated the bank to the tune of Rs.18,57,064.40. It was also alleged that accused nos.2 to 5 made false declaration about the value of the goods by drawing bills in favour of fictitious firms. Further, M/s. Alloy Steel Corporation, a fictitious firm floated by accused no.2, raised 11 fabricated invoices in the name of the firm amounting to Rs.44,19,000/- and fraudulently and dishonestly induced the said bank to advance the amount of Rs.30,93,300/-. In the complaint it is alleged that accused no.1 being a public servant, managed to get credited, at the instance of accused no.2, an amount of Rs.9500/- in the account of his sons on 28.11.1975 and Rs.5400/- on 11.02.1976. In addition to the same, accused no.1 accepted a wrist watch, Crown T.V. set and enjoyed a trip to Bombay at the expense of accused nos.2 and 3, as such, committed the offence punishable under Section 161 and 165 of the Indian Penal Code (IPC).

(3.) After completion of the investigation on the complaint, all the accused were charged for the offences punishable under Sections 161, 166, 420, 468 and 471, IPC read with Sections 5(1)(d) and 5(2) of Prevention of Corruption Act, 1947. All the accused pleaded not guilty to the charges and claimed trial.