S.P. BHATIA AND ORS. Vs. CBI

JUDGEMENT

(1.) THESE two appeals have been filed by the appellants against the judgment of conviction and order of sentence dated 31.07.2003, passed by learned Special Judge, CBI Punjab, Patiala whereby the accused -appellant S.P. Bhatia was held guilty and convicted and sentenced to undergo rigorous imprisonment for a period of two years and to pay fine of Rs. 1,000/ - and in default of payment of fine, to further undergo rigorous imprisonment for a period of two months under Section 120 -B read with Section 420 IPC and to undergo rigorous imprisonment for a period of three years and to pay fine of Rs. 2,000/ - and in default of payment of fine, to further undergo rigorous imprisonment for a period of three months under Section 420 IPC. Appellant S.P. Bhatia was further convicted under Sections 381, 469, 471 and 477 -A IPC and sentenced to undergo rigorous imprisonment for a period of two years and to pay fine of Rs. 1,000/ - and in default of payment of fine, to further undergo rigorous imprisonment for a period of two months for each Section. He was further convicted under Sections 5 (1) (c) and Section 5(1) (d) punishable under Section 5 (2) of the Prevention of Corruption Act, 1947 and sentenced to undergo rigorous imprisonment for a period of three years and to pay a fine of Rs. 2000/ - and in default of payment of fine to undergo rigorous imprisonment for a period of two months for each Section. Accused -appellant Balwant Singh was held guilty and convicted and sentenced to undergo rigorous imprisonment for a period of one year and to pay fine of Rs. 500/ - and in default of payment of fine, to further undergo rigorous imprisonment for a period of one month under Section 120 -B read with Section 420 IPC. All the sentences were ordered to run concurrently.

(2.) THE brief facts of the prosecution case as noted by learned Special Judge, CBI Punjab, Patiala in his judgment are that S.P. Bhatia accused, the then Manager, Indian Overseas Bank, Moga District Faridkot while posted and functioning as such during the period 1985 - 86 entered into a criminal conspiracy with Balwant Singh accused with object to cheat Indian Overseas Bank, of the Foreign Exchange Instruments deposited in the bank by various account -holders on different dates in their accounts and in pursuance thereof, S.P. Bhatia accused by abusing his official position as public servant pilfered Foreign Exchange Instruments, the details whereof have been given in Column 2 of Annexure -A attached with the charge -sheet. These instruments were received in the bank on being deposited by various account holders in various bank records viz, namely ODBF, DBRF, CP registers etc. which were disposed of in the market at premium by the accused.

(3.) IN order to cover up credit of amount of various Foreign Exchange Instruments in rupees equivalent on the basis of fictitious and forged Credit Advices in the books of Moga branch, S.P. Bhatia accused had obtained ordinary cheques from Balwant Singh accused which had been issued by him from his accounts opened/maintained in State Bank of Patiala, Sabban Bazar, Ludhiana and State Bank of India, Agar Nagar, Ludhiana, Balwant Singh accused had opened Saving Bank account No. 3305 in State Bank of Patiala, Sabban Bazar, Ludhiana and another Saving Bank account No. 3499 in State Bank of India, Agar Nagar, Ludhiana on 21.2.85 which was converted into current Account No. 247 on 22.10.85. S.P. Bhatia accused had used cheque Nos. 739741, 739743 to 739748, 739751 to 739760 of different amounts issued from Saving Bank account No. 3305 of Balwant Singh accused maintained in State Bank of Patiala, Sabban Bazar, Ludhiana and cheques No. 730576, 730577, 730580, 730582 to 730584 of different amounts issued from current account No. 247 of Balwant Singh accused maintained in State Bank of India, Agar Nagar, Ludhiana. These cheques were found issued in the names of various persons such as Narinder Singh Gill, B.K. Chadha, Mohinder Singh, Chamkaur Singh, Gurdev Singh, Surjit Singh, Bahadur Singh and Jasjit Singh etc which were the common names of the persons who had deposited Foreign Exchange Instruments in Indian Overseas Bank, Moga. These cheques were given by S.P. Bhatia accused and shown them to have been received in Indian Overseas Bank, Moga. In fact, no entries regarding receipt of these cheques were found in ODB register of IOB Moga and ODB numbers given of these cheques were found to be fictitious. All the cheques on the receipt were endorsed with the endorsement that payee account will be credited on realization by S.P. Bhatia accused in his own handwriting and signatures. These cheques were sent by S.P. Bhatia accused to Indian Overseas Bank, main branch, Ludhiana vide cheque forwarding scheduled dated 22.5.85, 25.4.85, 25.5.85, 8.7.85, 26.7.85, 22.2.85, 5.8.85, 6.9.85, 20.9.85, 3.10.85, 17.10.85, 24.10.85 and 7.11.85. These cheque forwarding schedules have been found to be in the writing of S.P. Bhatia accused and containing his signatures. The above cheque along with above -mentioned cheque forwarding schedule and cheques were sent to Indian Overseas Bank, main branch, Ludhiana. These cheques were sent to the Indian Overseas Bank, Ludhiana to the concerned banks for realizing of payment. On clearing of all these cheques by State Bank of Patiala, Sabban Bazar, Ludhiana and State Bank of India, Agar Nagar, Ludhiana credit Advices showing realization of the said cheques were prepared by the officials of India Overseas Bank, Moga as the proceeds of the above mentioned ordinary cheques which had been received from Indian Overseas Bank, Moga for collection. The office copies of these Credit Advices were available and found to be containing genuine signatures of the officers of Indian Overseas Bank, main branch, Ludhiana. The original Credit Advices sent from Indian Overseas Bank, Ludhiana to Indian Overseas Bank, Moga were removed by S.P. Bhatia accused from the Bank record, and instead of these Advices, details whereof have been mentioned in column No. 10 of Annexure A showing the same as if these had been received from Indian Overseas Bank, main branch, Ludhiana as proceeds of various DDBFs and DBPFs. On the basis of the forged credit advices the entries standing in the books of Indian Overseas Bank, Moga, Branch had been eliminated. This modus -operandi of sending cheques for clearance through Indian Overseas Bank, Ludhiana was adopted by S.P. Bhatia accused to give credit to the accounts of various account holders whose Foreign Exchange Instruments have been stolen by him and for balancing inter branch transaction to avoid detection of this fraud. S.P. Bhatia accused had shown favour to Balwant singh accused whose accounts were utilized by him in affording credit of Indian rupee equivalent of Foreign Exchange Instruments through various cheques obtained from him as mentioned above by sanctioning and disbursing a dairy loan of Rs. 2800/ - on 5.11.1985 vide loan account No. 3/85 for Rs. 2800/ -.