LAWS(APH)-2017-12-17

AXIS BANK LIMITED Vs. STATE OF ANDHRA PRADESH

Decided On December 22, 2017
AXIS BANK LIMITED Appellant
V/S
STATE OF ANDHRA PRADESH Respondents

JUDGEMENT

(1.) The petitioners figure as accused in Cr.No.57 of 2011 on the file of the Police Station, Panjagutta, Hyderabad. The offences alleged against the petitioners are under Sections 120-B, 406, 420 read with Section 34 of the Indian Penal Code, 1860 and 156(3) of the Criminal Procedure Code . The petitioners have filed this petition seeking for quash of the proceedings against them, in the above crime.

(2.) Heard the counsel for the petitioners, the counsel for the second respondent and the learned Public Prosecutor appearing on behalf of the first respondent.

(3.) The revocation of bank guarantee, which was taken with the first petitioner bank herein, is the basis of this complaint. From the averments in the complaint, it can be understood, that the complainant is a company incorporated under the Companies Act , 1956. During the course of its business, the complainant entered into a contract with M/s. Orissa Computer Associates (OCA), for construction and implementation of e-books and as per the terms of the contract, the said OCA gave a bank guarantee for Rs.2.2 crores, through the first petitioner and the bank guarantee was executed by the first petitioner and its Manager and Vice President, D. Bhattacharaya. The OCA provided copy of the said bank guarantee to the complainant company, which is known to the first petitioner, which was formally known as UTI Bank Limited. The tenure of the said bank guarantee is one year from the date of its execution. One of the conditions in the bank guarantee is that the first petitioner shall not revoke the bank guarantee without prior written unconditional approval/permission from the beneficiary, before expiry of the claim period of the said bank guarantee. Based on and acting upon letter dated 15.10.2003 given by the first petitioner, the complainant company proceeded and opened a letter of credit for US $ 2,00,000 through Barclays Bank dated 18.11.2003 through Habib Bank Ag Zurich. The first petitioner did not send the original copy of the bank guarantee, in spite of the demand by the complainant company, though the same has to be made available to the complainant.