KAMAL INFOSYS LTD Vs. STATE OF U P

JUDGEMENT

(1.) This application has been filed by the applicant against the order dated 9.9.2002 passed by Special Judicial Magistrate, Central Bureau of Investigation, Lucknow (hereinafter referred to as C.B.I.) thereby rejecting the application for release of the Bank Account of the applicant.

(2.) The facts, in brief, are that the applicant was business associates of Uttar Pradesh Development Systems Corporation Ltd., a Government Undertaking known as UPDESCO and was imparting computer education and training to the students, general public and Government employees. An agreement was executed between UPDESCO and Kamal Infosys Pvt. Ltd, the applicant on 20th July, 1998 and the applicant was made business associates of UPDESCO. As per terms and conditions of the said agreement an A/c No. 21033 was opened at Union Bank of India, Secretariat Branch, Lucknow. Thus, the applicant claims his genuine Account No. 21033. The realisation of franchise fee/licence fee, royalty and interest-free refundable security deposits from the franchises at such rates/ percentages as may be decided by the Executive Committee and the share of UPDESCO and business associates i.e, the applicant was in the ratio of 40% and 60% respectively as per agreement. Thus, the applicant had 60% interest in the running of the aforesaid business. In the said account No. 21033 only the royalty on course fee collected throughout U.P., licence fee and payment for course material, etc. are deposited and day-to-day necessary expenses for running the computer training institution are being made out from this Account. The UPDESCO as per agreement transfers certain amount into the account of applicant at A/c No. 21033 and money deposited in the account is deposited only by the Government agencies. During investigation of Century Scam matter, the CBI instructed the Union Bank of India for stopping payment in the A/c No. 21033 vide latter dated 17.4.2001.

(3.) The contention of the applicant is that the Account No. 21033 is not the subject-matter of investigation. It has no concern with Century Scam Matter. None of the Bank entries in Account No. 21033 is linked with the Account No. 283 which is admittedly a forged account. The money deposited in A/c No. 283 has not been claimed by the applicant.