RAMESHWAR DASS GARG Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) THE present petition under Section 482 of the Code of Criminal Procedure has been filed by the petitioners for quashing of complaint dated November 15, 1997 (Annexure P1) and the summoning order dated December 22, 1997 (Annexure P2) passed by learned Judicial Magistrate 1st Class, Malerkotla.

(2.) THE respondent/complainant, Punjab National Bank filed a complaint against the petitioners under Sections 408, 420/120B, IPC alleging that the petitioners had applied for securing cash credit hypothecation against the goods/stocks purchased or to be purchased to the complainant/Bank and consequently the cash credit hypothecation of stock facility was sanctioned to them to the tune of Rs. 40 lacs. In this regard the petitioners executed various documents in favour of the Bank, At the time of filing of the complaint, a sum of Rs. 23,29, 730 -98 stood due in the account of C.C Hypothecated limit No. 405 along with interest and costs, etc. When the petitioners failed to submit stock statement to the Bank, the physical inspection was got conducted by the Bank, during which the hypothecated goods were found missing from their physical possession and only meagre stocks were found lying there. Major portion of hypothecated goods were found misappropriated. Since the petitioners failed to submit any explanation regarding hypothecated goods, the present complaint (Annexure P1) was filed.

(3.) IT has been averred in the present petition that no case whatsoever is made out against the petitioners as the firm was having regular transactions with the Bank and the stocks were merely hypothecated and not pledged with the Bank and in these circumstances, since the title in the said stocks/goods had never passed on to the Bank, therefore, the firm and its partners remained owners thereof and were free to deal with the same. It has been further averred that the allegations clearly show that the liability of the firm of the petitioners is purely of civil nature and the Bank is demanding the outstanding amount against the firm, as is clear from the various letters sent to the firm by the Bank.