GYAN CHANDRA MEHROTRA Vs. STATE

JUDGEMENT

(1.) This petition under Section 482 Cr.P.C. has been filed for quashing the criminal proceedings of Criminal Case No.26 of 2010, under Sections 120-B , 420 , 468 and 471 IPC and under Section 13(2) read with Section 13(1)(d) Prevention of Corruption Act, 1988 arising out of Case Reference No.0062009A0012 of C.B.I./ACB, Lucknow pending in the Court of Special Judge, C.B.I., Court No.1, Lucknow.

(2.) The facts, in nut shell, are that the petitioner is a practicing Advocate and has been in the Bar for the last 53 years. He had been a panel Lawyer of Canara Bank for several years and in several other cases of loan, he had given legal scrutiny report. It has been said that the petitioner has been representing several other banks including Bank of Baroda, Oriental Bank of Commerce, Federal Bank Limited, Indian Overseas Bank, Dena Bank. City Union Bank, South Indian Bank Baroda U.P. Bank etc. One of the co-accused Syed Rafat Ali, Proprietor of M/s SRA Auto World had obtained Over Cash Credit (OCC) limit in his favour to the tune of Rs.50 lakhs by mortgaging the immovable property bearing House No.169, Rajapur, Allahabad. The same property was, however, mortgaged with United Bank of India by showing it House No.365/169, Arazi No.327, Rajapur, Allahabad by the co-accused Syed Rafat Ali. In the revenue record, this property bearing no.169, Rajapur, Allahabad was not shown to have any mortgage till 27.3.2011 and a non encumbrance certificate in respect of the aforesaid property was issued by the Sub-Registrar, Sadar-I, Allahabad on 30.3.2011. Even the index register did not mention of any mortgage or lien on the aforesaid immovable property. Further, in the index register, the property mortgaged with the United Bank of India was recorded as House No.365/169, Arazi No.327, Rajapur, Allahabad. The petitioner gave legal scrutiny report on 12.2.2007 in respect of the property bearing no.169, Rajapur, Allahabad (Annexure-4) stating that Syed Arshad Ali, Syed Rafat Ali and Syed Arafat Ali sons of Late Syed Mushtaq Ali, were the owners in possession of property situate at Rajapur, Allahabad. It was further said that there was no prior mortgage or charge, which could be found out from the inspection of available record of the Sub-Registrar, Allahabad from 1.1.1994 to 5.2.2007 and, therefore, it was opined that if the documents in respect of the property were deposited in the manner required, it would satisfy the requirement of equitable mortgage.

(3.) It appears that by committing fraud, the said property, which was already mortgaged with the United Bank of India, was also mortgaged in favour of the Canara Bank and OCC limit of Rs.50 lakhs was obtained by the co-accused Syed Rafat Ali. When the accused Syed Rafat Ali did not pay back the amount withdrawn against OCC limit, the Canara Bank had filed proceedings against him before the Debt Recovery Tribunal through the petitioner.