TMI Blog2008 (8) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the basis of the consent terms, the suit was compromised upon the defendants agreeing to pay the amounts due as per the schedule mentioned in the consent terms. What is of importance in this case is Clause 11 of the consent terms, which reads as follows: Clause 11. Agreed that save as aforesaid neither party has any claim against the other and parties do hereby withdraw all the allegations and counter allegations made against each other. 4. Consequent upon the compromise of the suit and having regard to the contents of Clause 11 of the consent terms, the appellant herein filed an application for discharge from the criminal complaint, in respect of which charge sheet had been filed by the CBI. The said application was rejected by the Special Judge (CBI), Greater Bombay, by his order dated 11th December, 2002, which came to be challenged by the appellant before the Bombay High Court in Cr.R.A. No. 49/2005, along with several other writ petitions filed by the other accused. 5. Before the High Court, it was urged that since the subject matter of the dispute had been settled between the appellant and the Bank, it would be unreasonable to continue with the criminal proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the situation involving Section 420 IPC which was compoundable under Section 320(2) CrPC, while in the instant case, the charge sheet was also under Sections 467, 468, 471-A IPC along with the provisions of the Prevention of Corruption Act, which were non- compoundable. The High Court, therefore, held that neither of the said two cases would have application to the facts of this case and rejected the appellant's prayer for discharge from the criminal cases. 8. This appeal has been filed against the said order of the High Court rejecting the appellant's prayer for discharge from the criminal complaint. 9. Appearing for the appellant, Mr. R. Nariman, learned senior advocate, submitted that the appellant was not the direct beneficiary of the loans which had been granted by the complainant Bank, but had stood guarantee for the same in his capacity as the Managing Director of the Company to whom such loans had been advanced. Mr. Nariman submitted that while the loans were said to have been advanced to the Company- Accused No. 4 between 1986 and 1989, the suit for recovery of the unpaid dues was filed by the Andhra Bank in 1992 and two years thereafter the complaint wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to harass the appellant for the last 14 years when the initial complaint was lodged by the Bank. 13. It was lastly submitted by Mr. Nariman that, in any event, the contents of the chargesheet and the allegations made therein, at best make out a case for cheating and not forgery and consequently both the Duncans Agro Industries case (supra) and B.S.Joshi's case (supra) would apply to the facts of the case and the proceedings were liable to be quashed. 14. The learned Additional Solicitor General, Mr. A.Sharan, on the other hand, submitted that neither of the aforesaid two cases have any application to the facts of the instant case and the appellant had erroneously relied on the same. The learned Additional Solicitor General submitted that the CBI had filed chargesheet against the appellant under Section 120B read with Sections 420, 467, 468, 471 IPC and also under Sections 5(2) read with Section 5(1)(d) of the Prevention of Corruption Act, 1947 and Sections 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988. 15. The learned Additional Solicitor General submitted that apart from Section 420 IPC the appellant had been charged with other offences ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ronic record who dishonestly or fraudulently, inter alia, makes, signs, seals or executes a document or part of a document with the intention of causing it to be believed that such document was made, signed, sealed, executed, transmitted or affixed by or by authority of a person by whom or by whose authority he knows that it was not made, signed, sealed, executed or affixed. The learned Additional Solicitor General submitted that in the instant case the preparation of such a false document with the intention of cheating comes squarely within the definition of forgery under Section 463 IPC. 17. It was urged that all the ingredients of offences committed under Sections 468 and 471 as also Section 420 IPC are made out in the chargesheet, and hence, even if the matter was compromised between the parties, the criminal proceedings could not be compounded on that basis since the offences involved also include non-compoundable offences. 18. It 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. He submitted that in view of the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst 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. The dispute involved herein has overtones of a civil dispute with certain criminal facets. The question which is required to be answered in this case is whether the power which independently lies with this Court to quash the criminal proceedings pursuant to the compromise arrived at, should at all be exercised? 24. On an overall view of the facts as indicated hereinabove and keeping in mind the decision of this Court in B.S. Joshi's case (supra) 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. 25. We, therefore, set aside the order passed by the High Court dismissing the petitioner's revi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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