A. KUMAR SHARMA Vs. CBI

JUDGEMENT

(1.) By the present petition the petitioner seeks quashing of the charge sheet/ arising out of FIR No. RC-DAI-2003-A-0050 under section 120-B/420/467/468/471 of the Indian Penal Code (hereinafter referred to as "IPC") pending before Special Judge, CBI, Patiala House Courts, New Delhi and the proceedings emanating therefrom.

(2.) The brief case of the prosecution is that on 01.09.1997, one Mr. Des Raj Manchanda (since deceased) and his son Mr. Vijay Kumar Manchanda (accused No.1 in the charge sheet) applied for cash credit limit of Rs.100 lakhs (Rupees One hundred lakhs) in the Central Bank of India, Janpath Branch, New Delhi (hereinafter referred to as the "complainant bank"). The said application of accused No.1 and his father was processed by Mr. Ravinder Kapoor (accused No.2 in the charge sheet) and the cash credit facility was sanctioned by Mr. D.N. Upadhyay (accused No.3 in the charge sheet) on 08.10.1997. Even though M/s Raj Raxine Pvt. Ltd. (hereinafter referred to as the "company") did not fulfill the terms and conditions stipulated by the sanctioning authority, yet accused No. 2 and 3 released the credit facilities in favour of the company. The cash credit account of the company became overdrawn w.e.f. 30.06.1998 and there was no credit in the company's account during July and August 1998.

(3.) Accused No.1 and his father after utilizing the amounts sanctioned to their company constituted a partnership firm named M/s. Raj PU Foam Industries (hereinafter referred to as the "partnership firm"). On 29.09.1998, the accused No.1 and his father applied to the complainant bank for fresh credit facilities to the tune of Rs. 140 Lakhs (Rupees One hundred and forty lakhs), Letter of Credit (LC) Limit of Rs. 40 Lakhs (Rupees Forty lakhs) and a term loan of Rs. 7 Lakhs (Rupees Seven lakhs). As collateral security, the accused No.1 and his father offered property bearing No. A-11/3, Site IV, Industrial Area, Shahibabad, Ghaziabad (hereinafter referred to as "Ghaziabad Property") and a flat at 1626, Naiwala, Karol Bagh, New Delhi (hereinafter referred to as "Karol Bagh Property") to be mortgaged with this account. The said limits were sanctioned by accused No.2 and 3 on 13.11.1998 despite the fact that the accused No.1 and his father had cheated and caused a wrongful loss to the Central Bank of India of more than Rs. 1 crore (Rupees One crore) and the loan was disbursed by the complainant bank for the second time on 16.11.1998.