NAWAL KISHORE SINHE Vs. STATE OF BIHAR

JUDGEMENT

(1.) This application under Articles 226 and 227 of the Constitution of India has been filed by the petitioner one of the accused in Kadamkuan P. S. Case No. 45, dated 11-8 1976, registered Under Sections 420, 409, 120-B and 467, I.P.C. praying for restraining the State of Bihar from proceeding with the said case against him.

(2.) A F.I.R. was lodged by Joint Registrar, Co-operative Societies cum Liquidator, Patna Urban Co-operative Bank Limited, with Kadamkuan P.S. on 11-8-76 against one Kamla Saran Singh, a loanee of the Bank, alleging that Kamla Saran Singh as proprietor of Chanakya Bricks Manufacturing Company applied for a loan of Rs, 50, 000 required as working capital. Verification of the soundness of the applicant and the guarantors was submitted by Rama Shankar Prasad, cashier, and. counter-signed by M. A. Haidari, Manager of the Bank though the names of the guarantors were not disclosed in the loan application. The loan was sanctioned without ascertaining the existence of the said bick manufacturing company, solvency thereof, correctness of the purpose and fitness of sureties with a view to cheat the Bank and misappropriate its money. The loan was withdrawn on 19-1-1974 to be repaid before 30-10-74 with interest @ 12% per annum. But no repayment was ever made F.I.R. was lodged alleging that it was a conspiracy between Kamla Saran Singh and Bank employees to cheat the Bank and misappropriate its money.

(3.) The lower court record shows that the petitioner was the Chairman of the Patna Urban Co-operative Bank. The above Kadamkuan P. S. case is an offshoot of a big scandal in which huge amount of money of Patna Urban Co-operative Bank Limited is alleged to have been swindled by the employees and persons in authority of the Bank in conspiracy with different persons which led to the liquidation of the said Bank. The petitioner was taken into custody in connection with Kadamkuan P.S. Case No. 97 (5) 77. He was remanded in Kadamkuan P. S. care 45, dated 11-8-76.