IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.SASIDHARAN NAMBIAR WEDNESDAY, THE 24TH FEBRUARY 2010 / 5TH PHALGUNA 1931 Crl.MC.No. 3538 of 2009() ------------------------- CC.389/2006 of JUDL.MAGISTRATE OF FIRST CLASS-II, ALUVA .................... PETITIONER(S): 1ST ACCUSED: ----------------------------------------------- K.H.ABDUL MAJEED, PROPRIETOR, M/S.LAKSHMI WOOD INDUSTRIES & M/S. METAL MAKE ENGINEERS, PATHADIPPALAM, CHANGAMPUZHA NAGAR, COCHIN-33, RESIDING AT KAUNGAPADATHU HOUSE, PATHADIPALAM, COCHIN-33. BY ADV. MR.N.K.MOHANLAL RESPONDENT(S): COMPLAINANTS: ----------------------------------------------------- 1. SUB INSPECTOR OF POLICE, KALAMASSERY POLICE STATION, KALAMASSERY. 2. THE SOUTH INDIAN BANK LIMITED, REPRESENTED BY ITS BRANCH MANAGER, KALAMASSERY BRANCH, KALAMASSERY. 3. STATE OF KERALA, REPRESENTED BY PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM. R1 & R3 BY PUBLIC PROSECUTOR MR. S.U. NAZAR R2 BY ADV. MR.GEORGE VARGHESE,SC,SOUTH INDIAN BANK LTD. THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON 24/02/2010, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: Kss M.Sasidharan Nambiar, J. -------------------------- Crl.M.C.No.3538 of 2009 -------------------------- ORDER Petitioner is the first accused in C.C.No.389/2006 on the file of Judicial First Class Magistrate's Court- II, Aluva, taken cognizance for the offences under Sections 120B, 420, 464, 465, 466, 468 and 474 read with Section 34 of Indian Penal Code. Prosecution case is that in furtherance of their common intention to cheat, the two accused approached Branch Manager of Kalamassery South Indian Bank for a loan in favour of M/s.Lakshmi Wood Industries & M/s.Metal Make Engineers, owned by the petitioner and as collateral security for the loan, furnished title deeds in respect of the property comprised in Sy.Nos.112/1B/2 and 112/1E/2, which are water logged areas and also produced a sketch which was created by affixing the forged seal of the Village Officer, as if it is genuine, when, in fact, it is a dry land and obtained the loan and thereafter, failed to pay balance of Rs.25,53,198/- and thereby, committed the offences. This petition is filed under Section 482 of Code of Criminal Procedure to quash the CRMC 3538/09 2 proceedings contending that the disputes with the second respondent Bank were settled subsequently and the entire amount due to the Bank was paid and in view of payment of the dues and settlement of the disputes, it is not in the interest of justice to continue the prosecution. 2. Second respondent appeared through a counsel and filed a joint petition (Crl.M.Appl.No.878/2010), along with the petitioner, stating that entire disputes were amicably settled and second respondent received the entire amount due from the petitioner and Annexure- A2 certificate has already given to the petitioner recording settlement of the liability and returning the title deeds deposited and in view of payment of the entire amount due, second respondent has no objection for compounding the offences. 3. Learned counsel appearing for the petitioner, second respondent and learned Public Prosecutor were heard. 4. Prosecution case in essence is that petitioner, along with the second accused, availed a loan from the second respondent Bank and failed to pay Rs.25,53,198/- CRMC 3538/09 3 due and for the purpose of availing the loan, to make it appear that the water logged land belonging to the second accused is a dry land, which was furnished as collateral security, a certificate from the Village Officer and a sketch were produced. But, they were forged and thereby committed the offences. As held by the Apex Court in Manoj Sharma v. State (2008 (4) KLT 417), when the offences alleged against the petitioner are purely financial and personal in nature and petitioner has cleared the entire liability with the second respondent and second respondent stated that entire disputes were finally settled, it is not in the interest of justice to continue the prosecution. Petition is allowed. C.C.No.389/2006 on the file of Judicial First Class Magistrate's Court-II, Aluva is quashed. 24th February, 2010 (M.Sasidharan Nambiar, Judge) tkv