PREM LATHA UPPAL Vs. CANARA BANK

JUDGEMENT

(1.) This intra court appeal emanates from an order dtd. 2/9/2013 passed by Learned Single Judge by which writ petition preferred by the appellant has been dismissed. In order to appreciate the grievance of the appellant, relevant facts need mention, which are stated infra.

(2.) The appellant joined the services of Canara Bank (hereinafter referred to as 'the Bank' for short) in the year 1971 as clerk. The appellant for a period from 16/6/2000 till 21/8/2004 was posted as Senior Manager in Diplomatic Enclave Branch, New Delhi, which was headed by a Chief Manager. The appellant was one of the three member's of Credit Sanction Committee (hereinafter referred to as 'the Committee' for short). Mr.P.P.Naik, Chief Manager, R.K.Puram Branch was the Chairman of the Committee, whereas, Sri.R.Mutturamalingam, Manager, Diplomatic Enclave Branch was the other member of the committee. The committee by a unanimous decision on 19/3/2001 sanctioned Open Cash Credit (OCC) limit of Rs.50.00Lakhs to one M/s Aman Trading Company on the security of Stock and Receivables under the trader's scheme and collateral security of mortgage of immovable property, which was valued at Rs.107.21 Lakhs.

(3.) On 15/2/2002, one Mr.S.S.Bhat, Chief Manager of the Bank sanctioned a credit limit of Rs.50.00Lakhs to M/s Creative Trading Company and on 19/4/2002, he renewed the limit of Rs.50.00 Lakhs sanctioned in favour of M/s Aman Trading Company. The Vigilance Department of the company on 8/4/2003, suspecting the fraud played by the borrowers viz., M/s Aman Trading Company and M/s Creative Trading Company of availing credit limit on collateral security of mortgage of property with forged title deeds, ordered investigation. In the findings recorded in the vigilance investigation, it was found that borrowers had committed fraud on the bank.