RESERVE BANK OF INDIA Vs. NEDUNGADI BANK LTD

JUDGEMENT

(1.) A short but interesting question emerges for consideration in the above petition filed under Section 482 of the Code of Criminal Procedure, for short, the 'Code', over the continuation and sustainability of a criminal proceeding against a bank after its amalgamation with another bank. Petitioner is the Reserve Bank of India, hereinafter referred to as 'complainant', which filed a complaint against two persons, a Scheduled bank and its Chairman, imputing against them offences punishable under Section 46 of the Banking Regulation Act, 1949, hereinafter referred to as the 'Act'.

(2.) The 1st accused, a Banking company, and the 2nd accused, its Chairman are liable to be punished for the gross irregularities in the business operations carried out by the bank flouting the provisions of the Act and directions issued by the complainant, which were detected in the annual inspection over the bank by the complainant from January to March, 2001, was its case to prosecute them.

(3.) Cognizance of the offences punishable under Section 46(1) and (4) of the Act taken against the accused and process issued, both accused entered appearance, and an enquiry under Section 244 of the Code recording the evidence of the complainant followed. On the evidence recorded in such enquiry, the magistrate being satisfied there is ground for presuming that the accused have committed the offences imputed, charges were framed against them, to which both pleaded not guilty.