M L BISWAS Vs. STATE OF BIHAR

JUDGEMENT

(1.) This is an application under section 482 of the Code of Criminal Procedure thereinafter to be referred to as the code for quashing the entire criminal prosecution against the petitioners in Special Case N 3/80 pending in the court of the Special Judge (C.B.I.) South Bihar Patna.

(2.) The petitioners Nos. 2 and 3 are the partners of petitioner No.1 which is a firm having business transaction with the State Bank of India, Daltonganj Branch from the very beginning of the opening of the branch in the year 1957. Ii is said that the petitioners bill transaction arid D.D. purchase transaction with the said bank varied from Rs. 1 crores to Rs.8 crores per year. The petitioners had cheques facilities with the States Bank of India; Daltonganj with certain limits which is known as Demand Draft Purchase System. The petitioners used to issue self-cheques and also in favour of other persons at Calcutta Banks presented at Daltonganj and used to collect the money on the basis of the assumption of deposits of sale-proceeds at Calcutta banks. On 25-1-1980, a First Information Report was filed under Sections 120-B, 409,418, 468, 471 and 472 A of the Indian Penal Code and under sections 5(2) r/w and 5 (1) (c) (d) of the Prevention of Corruption Act against the petitioners and also against other officers of the State Bank of India at Daltonganj. The allegations against the petitioners are that they drew sufficient amount in excess of the Demand Draft Purchase limits allowed by the Bank. It is said that Sri T.K. Bagchi and Sri Arjun Prasad while functioning as Branch Manager and Manager respectively of State Bank of India, Daltonganjbranch, during the period of October, 1971S to March, 1979, entered into a criminal conspiracy with M/s. M.L. Biswas and Company and other partners Ranjit Kumar Biswas and B.N. Biswas to cheat the State Bank of India, Daltonganj Branch and to commit criminal misconduct abusing their official position and to obtain undue pecuniary benefits for themselves and others. It is further said that in furtherance of the said Criminal conspiracy, 109 cheques for Rs. 57,24,000 (Fifty-seven lakhs and twenty four thousand) issued by M/s. M.L. Biswas and Company and Sri Ranjit Kumar Biswas on their accounts standing at Mercantile Bank and United Bank of India at Calcutta were allowed to be discounted at State Bank of India, Daltonganj by Sri T.K. Bagchi and Sri Arjun Prasad when there was insignificant balance to their credits with the drawee banks, with the result that the cheques were dishonoured and returned unpaid and the amounts could not be recovered from the discounters. M/s. M.L. Biswas and Company had been allowed demand Draft limit up to Rs: 2,50,000 (Two lakhs and fifty thousand) Sri R.K. Biswas up to Rs. 2,00,000 and Sri. B.N Biswas up to Rs. 1,00,000 (One lakh) The Bank employees are said to have accommodated the, petitioners by allowing them to draw more amount than the limits imposed it is said that the forged bankpayment advices purported to have been issued by State Bank of India, Calcutta Main Branch were introduced into the Bank Records of State Bank of. India, Daltonganj Branch and the liabilities of the discounters were marked off dishonestly and with intent to facilitate further accommodation to the petitioners.

(3.) On 19-3-1982, the police submitted charge-sheet under sections 120B, 420, 468, 471 and 477A of the Indian Penal Code read with Sections 5(2) and 5(1)(c)(d) of the Prevention of Corruption Act against the petitioners as well as ,against the employees of the State Bank of India, Daltonganj branch. The learned court of Special Judge (C.B.I.) South Bihar took cognizance against the petitioners and other employees of the State Bank of India on 20-3-1982 under sections 120B, 420, 468, 4,71,477A of the Indian Penal Code and section 5 (2) nw and 5 (1) (d) of the Prevention of Corruption Act.