MORGAN TECTRONICS LTD. Vs. STATE AND ANR.

JUDGEMENT

(1.) C.M. No. 16698/2010 (for exemption).

(2.) IN this intra -court appeal, the challenge is to the order dated 11th August, 2010 passed by the learned Single Judge in W.P.(Crl.) No. 65/2000.

(3.) IT was contended before the learned Single Judge that the petitioner was a company and being a juristic person and, therefore, could not have mens rea necessary for committing an offence of criminal conspiracy as required under Section 120 -B of the IPC. Before the learned Single Judge, reliance was placed on Kalpnath Rai v. State, AIR 1998 SC 201 and Standard Chartered Bank and Ors. v. Directorate of Enforcement : (2005) 4 SCC 530. The learned Single Judge adverted to the facts where from it is discernible that the company was availing certain credit facilities from the Indian Bank and at a particular time the Indian Bank refused to extend further credits to the company on the ground of RBI restrictions. Thereafter the company switched over to Punjab & Sind Bank and it falsified its accounts and presented the same before the Punjab & Sind Bank in order to obtain various credit limits and other facilities from the said bank. The company showed lesser liabilities and concealed the facts regarding true liabilities. Because of the said concealment of facts, the company and its officials induced the Punjab & Sind Bank to sanction credit facilities to the tune of Rs. 618.51 lacs. Eventually, the company did not pay the amount and cheated the bank of more than 600 crores which resulted in the institution of a criminal case. The learned Single Judge referred to the decision in Assistant Commissioner v. Velliappa Textiles Ltd. : 2003 (11) SCC 405 and came to hold that the petition did not merit consideration.