T.NARAYANAPPA Vs. STATE

JUDGEMENT

(1.) In Special C.C.No.116/2007, on the file of XXXII Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bengaluru ('trial court' for short), seven accused persons faced trial for the offences punishable under Sec. 120B , 420 of Indian Penal Code (IPC) and stood convicted. Accused No.1, in addition to the above offences, faced trial and stood convicted for the offences under sec. 409 IPC and sec. 13(1)(d) read with 13(2) of Prevention of Corruption Act (' PC Act ' for short). Hence these three appeals. Accused Nos. 2, 3, 4, 5 and 6 filed Criminal Appeal 155/2011. Because of death of accused No.6, appeal as regards him was abated. Criminal Appeal 225/2011 is filed by accused No.1 and Criminal Appeal 226/2011 is filed by accused No.7.

(2.) The gist of the prosecution is : While accused No.1 was working as branch manager of Raghavendra Nagar Branch of State Bank of Mysore at Tumkur, in between the dates 11/7/2004 and 29/10/2004, he conspired with accused 2 to 5 and extended credit facilities to them beyond his discretionary power. He discounted cheques and purchased fraudulent bills of accused 2 to 5 exposing the bank to pecuniary loss of Rs.57,00,000.00. In violation of Banking Rules and Norms, accused No.1 sanctioned cash credit limit of Rs.10,00,000.00 even though the borrower had only applied for cash credit limit of Rs.5,00,000.00. There were also allegations that accused No.1 sanctioned two loans under SSI scheme for a sum of Rs.20,00,000.00 to M/s Karnataka Copper Mills of accused No.3 and loan of Rs.5,00,000.00 to accused No.3 towards cost of machinery, but he misutilized the money in conspiracy with accused 1 and 2, and diverted the money to M/s Lakshmi Perfumery Works of accused No.4. In the charge sheet details of transactions are mentioned.

(3.) The prosecution examined twenty one witnesses, and produced the documents marked Exs.P1 to P176. The accused got marked the documents as per Exs. D1 to D24.