M.V. SETHUMADAVAN Vs. STATE

JUDGEMENT

(1.) The conviction and sentence dated 29.12.2005 passed in Calendar Case No.144 of 1997 by the Additional Special Judge for CBI Cases, Chennai are being challenged in the present Criminal Appeal.

(2.) The case of the prosecution is that during July and December 1989, the accused 1 and 2 have entered into a criminal conspiracy in Avadi, Chennai and also other places and thereby agreed to do or caused to do an illegal act, viz., cheating Vijaya Bank, Avadi Branch and to commit criminal misconduct. In pursuance of their criminal conspiracy, the first accused as Branch Manager has misused his official position, fraudulently and dishonestly discounted 12 bills bearing Nos.BD 15/89 to 26/89 for a total sum of Rs.53.76 Lakhs, drawn in favour of M/s.Nimas International, Bombay, exceeding his discretionary power. In fact, the bills have not been accompanied with lorry receipts and therefore, there are no supporting documents to show that the bills in question are related to genuine transaction. The first accused, after knowing fully well that the bills have been presented only to wipe out outstanding liability of the BD in the name of M/s.All India Paper Convertors owned by the second accused and the said bills have not been honoured by M/s.Nimas International, Bombay and in furtherance of criminal conspiracy, on 26.7.1989, has purchased a bill for a sum of Rs.15,07,500/- drawn on M/s.T.G.L.Group Marketing Services, Guntur, registered as DBP 1/89 and the said amount has been credited into Current Account 316 by M/s.Super Sales Corporation owned by the 2nd accused. Further, the first accused in order to give aidance to the 2nd accused, has written a letter to release documents including documents in respect of DBP 1/89 at free of cost. The first accused has closed DBP by way of transferring it to the BD A/c. No.2/89 on 15.12.1989. On 29.9.1989, the first accused has purchased DBP 3/89 to 8/89 from the 2nd accused drawn by M/s. Nimas International, Bombay, when DBP 1/89 is outstanding from the 2nd accused and these bills have not been supported by lorry receipts or delivery challans or any other documents to establish the genuine transactions. The total bills of Rs.26.8 Lakhs have been credited to current A/c.316 of M/s.Super Sales Corporation. The first accused for the purpose of assisting the second accused has not forwarded the said bills for collection. Further, on 15.12.1989, the first accused has received DBP account by debiting BD account for the purpose of cheating Vijaya Bank. From 12.9.1989 to 10.11.1989, in pursuance of criminal conspiracy, the first accused purchased 11 clean bills from the 2nd accused by way of exceeding discretionary power of Rs.10,000/-. The first accused has concealed the facilities given to the second accused. The first accused has misused his power and the second accused in the course of transactions by way of releasing bogus bills has cheated the said Bank. The first accused, being a public servant, in the course of transactions, has indulged in corrupt practice.

(3.) On the basis of the allegations made against both accused, the respondent has launched investigation and after completing the same, laid a final report on the file of the trial court.