M V NATHAN Vs. STATE

JUDGEMENT

(1.) THIS appeal has been preferred against the judgment in C. C. No. 130 of 1997 on the file of the Principal Sessions Judge for CBI Cases, Chennai. Originally there were two accused in this case viz. M. V. Nathan (A1) and M. C. Ramamoorthy (A2). A2-M. C. Ramamurthy absconded pending trial, hence the case against A2 was split up as C. C. No. 130 of 1997 from C. C. No. 1 of 1994.

(2.) THE short facts of the prosecution case is that while A1-M. V. Nathan/Appellant was working as a Branch Manager in Indian Overseas Bank, Gudiyatham Branch, during 1989-90, he had entered into a criminal conspiracy with the other accused and in pursuance of the said conspiracy this accused has sanctioned five loans under SEEUY (Self Employment to Educated Unemployed Youth) scheme for providing self employment to educated unemployed youth in the name of One Krishnamurthy under loan No. 3/89 for Rs. 35,000/- dated 15. 2. 1989 for setting up an oil Expeller through the DIC, loan No. 6/89 for Rs. 25,000/- dated 2. 3. 1989 in the name of M. S. Umapathy, to purchase a paddy thrasher, through the DIC, Loan No. 13/89 for Rs. 25,064/- dated 4. 5. 1989 in the name of K. C. Jagadeeswran for purchase of paddy thrasher through the DIC, Loan No. 22/89 for Rs. 35,000/- dated 23. 5. 1989 in the name of S. Ramachandran, to start a 500 litre Milk Chilling Plant, through the DIC, Loan No. 24/89 for Rs. 25,000/- in the name of Dasarathan, to start a Jaggery Manufacturing Unit through the DIC. All the above said loan were sanctioned by the accused M. V. Nathan to the above five persons on the basis of bogus invoices and cash bills prepared by the absconding accused M. C. Ramamurthy (A2) in the name of M/s. Sri Lakshmi Traders No. 73/1 Pillaiyar Koil Street, Gudiyatham, which is a fictitious firm floated by the absconding accused M. C. Ramamurthy (A2) for cheating Indian Overseas Bank. THE appellant M. V. Nathan had sanctioned the above said loans without conducting pre and post sanction verifications. Thus the accused M. V. Nathan had abused his official position as a public servant favoured and obtained for the absconding accused M. C. Ramamurthy (A2) thereby causing wrongful loss to the tune of Rs. 1,45,000/- to the Indian Overseas bank and thereby committed an offence punishable under Section 120(B) r/w 420, 467, 468, 471 r/w 465 IPC and under Section 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988.

(3.) P. W. 2 was working as an Officer in IOB, Regional Office, Vellore, during the relevant period and he also speaks about the sanction of loan to P. W. 5 for purchasing an Oil Expeller and grant of loan to P. W. 6, P. W. 7 & P. W. 8 for the purchase of paddy hulling machine and grant of loan to one Dhasarathan for the purchase of Timber sawing machine. He would depose that Ex. P. 20-letter addressed by A2 to Zonal Manager IOB, Vellore, which incriminates A1 and A2 with the crime.