TMI Blog2012 (11) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of the Regulations/Guidelines, relating to Fixed Deposit, as in force in the Bank to contend that the action of accused - Appellants has been in conformity with the mandate of the Banking Norms even if it is to be assumed that they had any role to play in the matter of renewal of the FDs in the sole name of the accused Anita Mehra and the subsequent encashment . HELD THAT:- Court do not see as to why the action of the accused father in law in making the endorsement in the Investment Renewal of Vyasa Bank, in the light of the surrounding facts and circumstances already noted, cannot, prima facie, amount to making of a document with an intention of causing it to be believed that the same was made by or by the authority of the joint account holder. The said document having contained an endorsement that the FD be altered/renewed in the single name of accused wife and the Bank having so acted, prima facie, the commission of offences u/s 467, 468 and 471 read with Section 120B IPC, in our considered view, is disclosed against the accused father in law. The order of the High Court quashing the charges framed against father in law u/s 467, 468 and 471 IPC r/w Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Delhi that he along with his wife Anita Mehra had opened five Foreign Currency Non-Resident Fixed Deposits (FCNR FD) of the total value of about ₹ 20,00,000/- in their joint names. According to the complainant, accused S.K. Khosla who is his father-in-law had forged his signatures on the F.D receipts and got the same renewed in the sole name of Anita Mehra who, thereafter, encashed the value thereof and unauthorisedly received the payments due. The details of the FCNR FD, according to the complainant, are as follows: i) FCNR FD Nos. 9/92 and 22/91 with Canara Bank; ii) FCNR FD Nos. 103402 and 103403 with Punjab and Sind Bank and; iii) FCNR FD No. 0756223 with Vyasa Bank. 5. On receipt of the aforesaid complaint, FIR No. 110/94 was registered, on investigation whereof the following facts appear to have come to light: I) S.K. Khosla had made an endorsement on the reverse of the receipt pertaining to FCNR FD Nos. 22/91 to the effect that the said FDR be renewed in the sole name of Anita Mehra; II) On 23.11.1992 and 12.03.1993 Canara Bank renewed FCNR FD Nos. 22/91 and 9/92 respectively on the basis of the letters dated 09.10.1992 written by Anita Mehra to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment Renewal Form dated 22.03.1993 submitted to Vyasa Bank and the admitted signatures of accused Anita Mehra, S.K. Khosla and the complainant Satish Mehra were sent to the Central Forensic Laboratory. On receipt of the report of the laboratory, charge sheet dated 28.08.1997 was filed by the investigating agency against the accused S.K. Khosla alone. 7. The learned trial court, however, directed summons to be issued to the two Appellants G.K. Bhat, Chief Manager of the concerned Branch of Canara Bank and R.K. Arora, Senior Manager of the said Branch as well to one A.P. Singhna, Manager of Punjab and Sind Bank and also to the accused Anita Mehra (wife of the complainant) for trial for offences punishable under Sections 420, 468, 471 read with Section 120B of the Indian Penal Code. 8. Against the aforesaid order of the learned trial court, the High Court of Delhi was moved by the accused for setting aside the order issuing summons and for quashing the proceeding as a whole. By order dated 23.10.2002, the High Court took the view that as all issues and contentions raised can be so raised before the learned trial court at the time of framing of charge, interference would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , will not make the accused - Appellants liable unless the positive role of either of the Appellants in the renewal of the FDs in the sole name of accused Anita Mehra or in the encashment of one of the FDs (FD No. 22/91) by the aforesaid accused is disclosed. Learned Counsel has also relied on the provisions of the Regulations/Guidelines, relating to Fixed Deposit, as in force in the Bank to contend that the action of accused - Appellants has been in conformity with the mandate of the Banking Norms even if it is to be assumed that they had any role to play in the matter of renewal of the FDs in the sole name of the accused Anita Mehra and the subsequent encashment of FD No. 22/91. On the other hand, learned Counsel for the first informant/Appellant, Satish Mehra has contended that the connivance of the Bank officials in the fraudulent renewal of the FDs is ex facie apparent and further that the endorsements made by accused S.K. Khosla on the reverse of the FDs and in the Investment Renewal Form of Vyasa Bank clearly attract the ingredients of the offence of 'forgery' as defined Under Section 464 of the Indian Penal Code. It is, therefore, submitted that the interference mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing criminal proceeding has been recognized to be inherent in every High Court. The power, though available, being extra ordinary in nature has to be exercised sparingly and only if the attending facts and circumstances satisfies the narrow test indicated above, namely, that even accepting all the allegations levelled by the prosecution, no offence is disclosed. However, if so warranted, such power would be available for exercise not only at the threshold of a criminal proceeding but also at a relatively advanced stage thereof, namely, after framing of the charge against the accused. In fact the power to quash a proceeding after framing of charge would appear to be somewhat wider as, at that stage, the materials revealed by the investigation carried out usually comes on record and such materials can be looked into, not for the purpose of determining the guilt or innocence of the accused but for the purpose of drawing satisfaction that such materials, even if accepted in its entirety, do not, in any manner, disclose the commission of the offence alleged against the accused. 16. The above nature and extent of the power finds an exhaustive enumeration in a judgment of this Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material on which the structure of the prosecution rests and the like would justify the High Court in quashing the proceeding in the interest of justice. The ends of justice are higher than the ends of mere law though justice has got to be administered according to laws made by the legislature. The compelling necessity for making these observations is that without a proper realisation of the object and purpose of the provision which seeks to save the inherent powers of the High Court to do justice, between the State and its subjects, it would be impossible to appreciate the width and contours of that salient jurisdiction. It would also be worthwhile to recapitulate an earlier decision of this Court in Century Spinning and Manufacturing Co. v. State of Maharashtra AIR 1972 SC 545 noticed in L. Muniswamy's case (Supra) holding that the order framing a charge affects a person's liberty substantially and therefore it is the duty of the court to consider judicially whether the materials warrant the framing of the charge. It was also held that the court ought not to blindly accept the decision of the prosecution that the accused be asked to face a trial. 17. While dealing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Any examination of the validity of a criminal charge framed against an accused cannot overlook the fundamental requirement laid down in the decisions rendered in Century Spinning and Muniswamy (supra). It is from the aforesaid perspective that we must proceed in the matter bearing in mind the cardinal principles of law that have developed over the years as fundamental to any examination of the issue as to whether the charges framed are justified or not. So analysed, we find that in the present case neither in the FIR nor in the charge sheet or in any of the materials collected in the course of investigation any positive role of either of the Appellants, i.e., G.K. Bhat and R.K. Arora has been disclosed in the matter of renewal and encashment of the fixed deposits. All that appears against the aforesaid two accused is that one was the Chief Manager of the Bank whereas the other accused was at the relevant time working as the Senior Manager. What role, if any, either of the accused had in renewing the two fixed deposits in the sole name of Anita Mehra or the role that any of them may have had in the payment of the amount due against FD No. 21/91 to Anita Mehra or in cancelling the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said FD was made by the Bank on the basis of a letter dated 09.10.1992 written by Anita Mehra to the Bank. If the above fact has been revealed in the course of investigation of the FIR no liability in respect of the FD bearing No. 22/91 can be fastened on the accused S.K. Khosla. Neither is there any allegation against S.K. Khosla with regard to receipt of the money against the aforesaid FD by Anita Mehra. Similarly in respect of FD bearing No. 9/92 there is no allegation that renewal of the said FD was made on the basis of any endorsement or request made by S.K. Khosla. In the light of above facts it cannot be held that the High Court had committed any error in quashing the charges under Sections 120B and 420 Indian Penal Code against the accused S.K. Khosla in so far as the aforesaid two FDs, i.e. FD Nos. 22/91 and 9/92, are concerned. 21. Coming to the charges under Sections 467, 468, 471 read with Section 120B Indian Penal Code framed against accused S.K. Khosla, we do not find that FD Nos. 22/91 and 9/92 of Canara Bank and FDS Nos. 103402 and 103403 of Punjab and Sind Bank were renewed in the sole name of Anita Mehra on the basis of the endorsement made on the reverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and circumstances already noted, cannot, prima facie, amount to making of a document with an intention of causing it to be believed that the same was made by or by the authority of the joint account holder Satish Mehra. The said document having contained an endorsement that the FD be altered/renewed in the single name of accused Anita Mehra and the Bank having so acted, prima facie, the commission of offences under Sections 467, 468 and 471 read with Section 120B Indian Penal Code, in our considered view, is disclosed against the accused S.K. Khosla. The order of the High Court quashing the charges framed against S.K. Khosla under Sections 467, 468 and 471 Indian Penal Code read with Section 120B Indian Penal Code in so far as the Investment Renewal Form dated 22.03.1993 and FD No. 0756223 with Vyasa Bank, therefore, is clearly unsustainable. We therefore interfere with the aforesaid part of the order of the High Court in so far as the accused S.K. Khosla is concerned. 23. Consequently and in the light of the foregoing discussions we allow the Criminal Appeals arising out of Special Leave Petition (Crl) Nos. 3546 and 910 of 2012 and allow the Criminal appeal arising out of S ..... 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