Allegations were to the effect that "Letter Heads" ofKarnataka Bank Ltd., were removed surreptitiously and with fakeseals, fake bank guarantees were typed out on the "Stamp Papers"purchased from "Koratagere Stamp Vendor" and were signed byaccused no. 2 posing to be the Manager of Karnataka Bank Ltd.,Koratagere Branch.These bank guarantees were submitted as ifthey were genuine in the office of Deputy Commissioner of Excise,Tumkur.Order of learned Single Judge by which proceedings initiatedagainst the respondents in CC.No.1613/1998 on the file of the CJM,Tumkur, were set aside is subject matter of challenge, in this appeal.Background facts in nutshell essentially are as follows: -The Inspector of Police, Fraud Squad, COD submitted acharge-sheet against the Respondents (hereinafter referred to as"accused") in the aforesaid case alleging commission of offencespunishable under Sections 465, 468, 471 and 420 read with Section120-B of Indian Penal Code 1860 (in short 'IPC').The said charge-sheet was submitted after investigation, on receipt of complaintmade by one Police Inspector attached to the Fraud Squad, COD,Bangalore.Cognizance was taken by the CJM.Respondents -accused nos. 1&2 filed application before the Karnataka High Courtunder Section 482 of the Code of Criminal Procedure, 1973 (in shortthe 'Code').They inter alia contended that the allegations madehave not been borne out by the materials/evidence collectedduring investigation and continuance of proceedings against themwould be against the ends of justice.Learned single Judge notedthat the substance of charge-sheet as stated in Form No. 7 was tothe effect that for the year 1992-1993 and 1993-1994, the ExciseContractors Ranganatha Group were awarded the contract to actas excise contractors for the Tumkur District.The said RanganathaGroup sub-leased by way of General Power of Attorney (in short'GPA') to accused no. 1 to act as Excise Contractor of Koratagereof Tumkur District.As a part of the arrangement, the said accusedno.Similarwas the position for the year 1993-1994 except that the originalcontractors were Yallappa and Ramachandrappa and the Bankguarantee required to be furnished was for an amount ofRs.64,29,500/-.On 17.7.93, accused no. 1 took Excise Sub-Inspector to ahouse at Asok Nagar, Tumkur where he introduced accused no. 2 tobe the Manager of the Bank and caused service of a notice whichwas addressed to the Manager of the Bank by the DeputyCommissioner of Excise.Under the above circumstances, it wasalleged that with fraudulent intention, fake bank guarantees,confirmation letters, extension letters were submitted and there wasimpersonation.Therefore, it was stated that offences werepunishable as noted above.Learned Single Judge analysed the background facts andcame to hold that the involvement of excise officials cannot beruled out and when they have been indicated to be witnesses,likelihood of prejudice cannot be ruled out.It was also noted thatthere was no "definite evidence" to show that accused nos. 1&2were directly involved.Finally, it was observed that there was nomaterial to hold that the accused persons had committed theft of"Letter Heads" from Karnataka Bank Ltd., and/or they hadcommitted forgery for the purpose of cheating or have usedgenuine forged documents or had cheated the government.Aggrieved by the said Order directing quashing of theproceedings, this appeal has been filed.The appeal isallowed.

Cited provisions: Section 482 in The Indian Penal Code; Section 155 in The Indian Penal Code; Section 120B in The Indian Penal Code; Section 156 in The Indian Penal Code