Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2017 (7) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 1436 - SC - Indian LawsCheating - Criminal Conspiracy - Applications seeking discharge - discharge sought mainly on the ground that M/s. Modern Denim Ltd.-Accused No. 13 had since entered into One Time Settlement (OTS) with the bank and the allegation of forgery and use of forged documents as genuine were not raised by the bank in the proceedings before the Debt Recovery Tribunal, as such no case was made out against them - compoundable offence or not - Section 468, 471 & 201 Indian Penal Code - HELD THAT:- The order passed by the trial court indicates that it has treated the main offence being that of cheating and it has also been observed that there is no such allegation that documents are forged and pecuniary advantage has been obtained on that basis. The trial court had heavily relied upon the OTS. Its observation that forged documents had not been used to defraud the Bank in our opinion is a palpably incorrect and perverse finding and cannot be sustained. There is overwhelming material placed on record along with charge sheet which indicates that a large number of documents had been forged in the instant case and Accused persons thereby have induced the Bank for disbursing the working capital limits to M/s. Modern Denim Ltd. In Rumi Dhar's case [2009 (4) TMI 999 - SUPREME COURT], this Court has observed that when settlement is arrived at between the creditors and the debtor, the offence, if committed, as such does not come to an end. Even a judgment rendered in the civil proceedings, when it is rendered on the basis of a settlement entered into between the parties, would not be of large relevance as per criminal offence required of Section 49 of the Evidence Act. The judgment of the civil court is admissible only for limited purposes. The order passed by the trial court affirmed by the revisional court and High court cannot be said to be sustainable. The impugned orders are thus set aside. Let the trial court frame the charges, and proceed further in accordance with law, and conclude the trial positively within a period of one year from today - appeal allowed.
|