N BHOJARAJA SHETTY Vs. C B I

JUDGEMENT

(1.) THE present revision petition is preferred against the orders of the Special Judge, charging the petitioner for offences punishable under Section 120-B, I. P. C. read with Section 420/467/468/471 and Section 5 (1) (d) and 5 (2) of the Prevention of Corruption Act, 1947 and Section 13 (1) (d) and 13 (2) of the Prevention of Corruption Act, 1988.

(2.) THE brief facts necessary to decide this present petition are that M/s. R. K. Bhandari (Homeopath) Private Limited was maintaining a current account with vijaya Bank, R K. Puram. Later on the name of the said company was changed to M/s. R. K. B. Herbals private Limited (accused No. 5, hereafter "a-5" ). The case of the prosecution is that while opening this account, M/s. Vijaya Bank, R. K. Puram, New Delhi, enquired with Indian overseas Bank, Daryaganj, Delhi which, by letter dated 13-3-1982 informed the former that there was no objection if current account of the said company was opened by them provided no credit facilities were extended to it. A-5 submitted a loan application to M/s. Vijaya Bank, R. K. Puram, New delhi on 2-2-1987 for obtaining credit facilities to the tune of Rs. 204 lakhs. It was alleged that the Petitioner was the Branch manager at the R. K. Puram, New Delhi branch of Vijaya Bank at the relevant time. The loan proposal was favourably recommended and forwarded by him to the Divisional office in Delhi on 20-2-1987. However, the proposal was deferred by the then divisional Manager, Delhi, on account of the company not obtaining opinion of previous lender (OPL) i. e. M/s. Indian Overseas Bank, daryaganj, Delhi and also because of an earlier default by Deepak Bhandari, Director of the company in repayment of loan facility availed earlier from M/s. Vijaya Bank. The prosecution alleged that the petitioner willfully, dishonestly and fraudulently did not obtain the OPL from M/s. Indian Overseas Bank, Daryaganj, Delhi.

(3.) THE prosecution further alleged that m/s. R. K. B. Herbals Limited again submitted a loan application dated 24-10-1987 through its Managing Director R. K. Bhandari (since deceased) seeking cash credit limit of Rs. 50 lakhs and bill purchase limit of Rs. 50 lakhs, thus totalling Rs. 1 crore. In the loan application, the accused persons willfully and dishonestly concealed material facts of having obtained working capital facilities from M/s. Indian Overseas bank, Daryaganj, Delhi. The specific allegations against the petitioner were that he prepared the advance proposal as well as credit report dated 25-10-1987 in which he wilfully, fraudulently and dishonestly concealed the fact of M/s. R. K. B. Herbals limited having obtained credit facilities from m/s. Indian Overseas Bank, Daryaganj, delhi and sent the report to the Zonal office of M/s. Vijaya Bank, recommending sanction of credit facilities applied for by the accused. The petitioner allegedly knew that m/s. R. K. B. Herbals Limited had availed credit facilities from M/s. Indian Overseas bank, Daryaganj, Delhi, since he had processed an earlier loan application dated 2-2-1987. On 27-10-1987, the Executive Director allowed working Capital to M/s. R. K. B. Herbals Limited, on an ad-hoc basis, to the extent of Rs. 20 lakhs by way of OLCC and to the extent of Rs. 45 lakhs for Demand Bill Purchase (DBP Limit) subject to canvassing pf deposits of Rs. 2 crores.