DHARMENDRA ARVINDBHAI CHOKSI Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THIS revision under Sec. 397 of the Code of Criminal Procedure, 1973 ('the Code' for short) has been filed by the applicants-original accused Nos. 9 and 10 being aggrieved and dissatisfied with the order dated 5th April, 2005 below Ex. 4 passed by the learned Special Judge, Court No. 4 (Special) for CBI Cases, Navrangpura, Ahmedabad in Special Case No. 2 of 2002 whereby the application for discharge filed by the applicants under Sec. 227 of the Code was dismissed.

(2.) THE short facts are that a complaint was filed by Shri S. M. Mishra, Sr. Regional Manager, Punjab National Bank, Ahmedabad, on 24-3-2001 inter alia alleging that the accused persons in connivance with each other fraudulently got prepared Pay Orders worth Rs. 10. 00 crores from Maskati Market Branch of Punjab National Bank and discounted three Pay Orders of Classic Co-Operative Bank thereby cheated Punjab National Bank to the tune of Rs. 7. 00 crores. On the basis of aforesaid complaint, the investigating agency proceeded with investigation. During the course of the same, it was revealed that Shri Naresh Chokshi was doing business of purchase and sale of bulk gold in the name and style of M/s K. L. Chokshi at 2321, Chokshi Bazar, Manek Chowk, Ahmedabad and major portion of selling was made to M/s Chokshi Arvindkumar and Co. The Classic Co. Op. Bank started by Shri Suresh Ghatecha under his Chairmanship at the office situated at Blue Star Complex, 1st Floor, Near Old High Court Crossing, Ahmedabad, opened a Current Account with Visnagar Nagrik Sahakari Bank Ltd. to run the day-to-day clearing business of bank. The said Classic Co. Op. Bank was appointed as Sub-Member of Ahmedabad Banker's Clearing House of Reserve Bank of India being sponsored member through Visnagar Nagrik Sahakari Bank Ltd. Ahmedabad. Shri M. C. Shah, Branch Manager of Visnagar Nagrik Sahakari Bank Ltd. joined at Usmanpura Branch, Ahmedabad on transfer from Surat. It was further revealed that Shri Suresh Ghatecha in conspiracy with Shri Naresh Chokshi discontinued charging commission on the Pay Orders issued to M/s K. L. Chokshi with effect from 1st October, 2000. On 22nd December, 2000 Shri Suresh R. Khatavkar, the then Branch Manager of Punjab National Bank, Maskati Market Branch, joined as Senior Manager. M/s K. L. Chokshi opened Current Account with the Classic Co. Op. Bank bearing No. 7576 on 18-2-2001 and with Punjab National Bank bearing No. 7576 on 19-2-2001. M/s Chokshi Arvindkumar and Co. also opened Current Account with the Classic Co. Op. Bank. It was also revealed that operation of Ahmedabad Bank Clearing House was suspended by Reserve Bank of India on 13-3-2001 with reference to the transactions and clearing of instruments of the Classic Co. Op. Bank. However, Shri M. C. Shah, Manager, Visnagar Nagarik Sahakari Bank Ltd. knowingly debited all the instruments received by them in clearing house in the account of the Classic Co. Op. Bank and created a debit balance of Rs. 47,21,83,629/- at the end of 13-3-2001. It was also further revealed that Pay Orders presented by Visnagar Nagarik Sahakari Bank Ltd. to the tune of Rs. 10. 00 crores of Punjab National Bank on 14-3-2001 were cleared by Punjab National Bank and amount of Rs. 10. 00 crores was credited in the account of the Classic Co. Op. Bank. Out of three Pay Orders of the Classic Co. Op. Bank discounted by Punjab National Bank, only one Pay Order of Rs. 3. 00 crores was cleared on 15-3-2001. When Punjab National Bank represented again on 16-3-2001, it was dishonoured for "stop Payment by the Purchaser" and on 19-3-2001, again the remaining Pay Orders were returned unpaid. In view of the above, a case was registered by CBI, Gandhinagar bearing No. RC-10/a/2001-GNR for cheating to the tune of Rs. 7. 00 crores. At the end of investigation and on the basis of material collected against the accused, since the investigating agency found a prima facie case against the accused, a charge sheet was filed in the Court of learned Special Judge, Court No. 3, Ahmedabad, for the offences punishable under Sec. 13 (2) read with Sec. 13 (1) (d) of Prevention of Corruption Act, 1988 and the case was numbered as Special Case No. 2 of 2002.

(3.) THE applicants filed an application Ex. 4 in said Special Case No. 2 of 2002 under Sec. 227 of the Code for discharge. The applicants filed Misc. Cri. Appln. No. 693 of 2003 before the learned Special Judge, Ahmedabad, for a direction to the CBI, Gandhinagar, to place the originals of important documents in the said application. The said application was however withdrawn by them. Ultimately, the application Ex. 4 was dismissed by the learned Special Judge, Court No. 4 (Special) for CBI Cases, Navrangpura, Ahmedabad. Hence, the present revision by the applicants-original accused.