Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2008 (8) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (8) TMI 966 - SC - Indian LawsApplications seeking to quash the criminal proceedings after the compromised between the parties - Financial Fraud with Bank - Bank filed a suit for recovery of the amount payable - Cheating and use of forged documents - learned ASG was urged that even if no steps have been taken by the CBI since the chargesheet was filed in 1998, the same would not be a ground for quashing the criminal proceedings once the chargesheet had been filed. HELD THAT:- The basic intention of the accused in this case appears to have been to misrepresent the financial status of the company, M/s Neemuch Emballage Limited, Mumbai, in order to avail of credit facilities to an extent to which the company was not entitled. In other words, the main intention of the company and its officers was to cheat the Bank and induce it to part with additional amounts of credit to which the company was not otherwise entitled. Despite the ingredients and the factual content of an offence of cheating punishable u/s 420 IPC, the same has been made compoundable under Sub-section (2) of Section 320 Cr.P.C. with the leave of the Court. Of course, forgery has not been included as one of the compoundable offences, but it is in such cases that the principle enunciated in B.S. Joshi's case [2003 (3) TMI 721 - SUPREME COURT] becomes relevant. In the instant case, the disputes between the Company and the Bank have been set at rest on the basis of the compromise arrived at by them whereunder the dues of the Bank have been cleared and the Bank does not appear to have any further claim against the Company. What, however, remains is the fact that certain documents were alleged to have been created by the appellant herein in order to avail of credit facilities beyond the limit to which the Company was entitled. keeping in mind the decision of this Court in B.S. Joshi's case and the compromise arrived at between the Company and the Bank as also Clause 11 of the consent terms filed in the suit filed by the Bank, we are satisfied that this is a fit case where technicality should not be allowed to stand in the way in the quashing of the criminal proceedings, since, in our view, the continuance of the same after the compromise arrived at between the parties would be a futile exercise. We, therefore, set aside the order passed by the High Court dismissing the petitioner's revision application in Special Case and quash the proceedings against the appellant. The appeal is accordingly allowed.
|