KEKOO J MANECKJI Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is a petition filed under Sections 397 and 482 Cr. P. C. as well as under Article 227 of the Constitution of India and is directed against an order made by the Additional Chief Metropolitan Magistrate, 3rd Court Esplanade, Bombay, on 24th April, 1978, directing that a letter of request might be issued to the District Court of the United States for the Western District of Washington (U. S. A,) to get the necessary documents from a bank in America.

(2.) THE present petitioner who is a partner of M/s. Pillman Aircraft Co. is alleged to have a savings account in the Washington Mutual Savings Bank, Seattle, Washington, U. S. A. , being account No. 121730. The Central Bureau of Investigation at whose instance the impugned order is made by the Magistrate is investigating into an offence under Sections 120-B, 162 and 163 of the Indian Penal Code against M/s. Pillman Aircraft Co. Bombay, and its partners. According to the investigating agency, the Pillman Aircraft Co. and its partners had entered into an agreement with the Boeing Company, Seattle, U. S. A, every year during the period 1969 to 1976 to work as their consultants in India for promoting the sale of Boeing Aircrafts in India and as per the operative agreements, the accused received compensation on percentage basis in case of some categories of air-crafts and at fixed rate in case of other categories of aircrafts in India and thus huge amounts were accumulated abroad in U. S. dollars during the period 1969 to 1976 which were kept in the foreign bank at Washington. It was stated in the application before the Magistrate that the accused had executed another set of agreements with the Boeing Company under which the Pillman ' Aircraft Company was to get a fixed annual retainer of a small amount which was brought into India through normal banking channels and the large amount of compensation which is illegally retained outside India is kept in savings account No. 121730 in the Washington Mutual Savings, Bank, Seattle, and was disbursed illegally.

(3.) ACCORDING to the C. B. I. , their investigation has shown that there is documentary evidence about the two sets of agreements and during the period 1969 to 1976 though under the agreements disclosed to the Government authorities in India the accused were to get $ 21. 000/per year as consultancy charges, under the real agreements, the accused had earned compensation of 15,00,000/-U, S. dollars against the |ale of 747 aircrafts to Air India and 73f aircrafts to Indian Airlines Corporation, out of which amount only fixed annual retainers at the rate of $ 21. 000/- per year were repatriated to India during 1969 to 1976. The retention of the amount outside India which, according to the C. B. I. , is in violation of the Foreign Exchange Regulations and the said amount is suspected to have been used to influence public servants in India by corrupt and illegal means for promoting the sales of Boeing aircrafts to Air India and/or Indian Airlines by foreign companies. With a view to find out the quantum of amount credited from time to time in the Washington Mutual Savings Bank in Account No. 121730 of accused Nos. 2 and 3 (petitioner is accused No. 2) and the mode of withdrawal of those funds and the procedures to withdraw those funds, the C. B. I. wanted to obtain the following documents in connection with savings Account No. 121730 from the Washington Mutual Savings Bank, Seattle: