U.Subhadramma & Ors vs State Of A.P Rep.By Pub.Prosecutor & Anr

The appellants being legal representatives of one Ramachandraiah who was accused of offences under Sections 409, 468 read with Section 471 of the Indian Penal Code, have filed this appeal against the Judgment and order dated 28-6-2006 of the High Court of Andhra Pradesh at Hyderabad dismissing their petition under Section 482 of the Criminal Procedure Code. Ramachandraiah, since deceased, who was the husband of Appellant No.1 and father of Appellant Nos. 2 and 3, was prosecuted under the aforesaid sections in respect of misappropriation of funds. He was charged with misappropriation of an amount of Rs. 6,57,355.90 during the period 31-7- 1987 to 29-6-1988 along with him one Subbarayudu was charged as Accused No.2. In October, 1991, U. Ramachandraiah expired during the trial. The trial court acquitted the Accused No.2 Subbarayudu by Judgment dated 25.10.1993. However, the trial court observed on the basis of oral and documentary evidence that Ramachandraiah alone committed the offence as alleged by the prosecution. Further, that there was no oral or documentary evidence placed before the Court to show that Subbarayudu the surviving accused assisted Ramachandraiah in committing the alleged offence. In effect, the trial court found Ramachandraiah responsible for the offences though he could not be adjudged guilty since he had expired.

2. In 1997, the State moved an application under the Criminal Law Amendment Ordinance, 1944 (Ordinance No. XXXVIII of 1944) for attachment of property of the appellant under the criminal law. Thereon, the District Judge passed an order of interim attachment under Clause 4 of the ordinance on the basis that Ramachandraiah has committed the scheduled offences or that he has procured money or the property in question from the proceeds of such offence. The District Judge issued notice calling upon the appellants to show cause why the order of attachment should not be made absolute. In this order, the District Judge observed that according to the state as many as 30 items mentioned in the schedule were acquired by the said Ramachandraiah either in his own name or his wife's name or in the names of his sons due to illegal amounts drawn by him and a case was filed against Ramachandraiah as accused No.1 and Subbarayudu as accused no.2. The District Judge further observed that the trial court i.e. first Additional District Munsif, Cuddapah found Ramachandraiah had committed the offence as alleged by the prosecution and, therefore, the said Ramachandraiah committed the offence. It was observed by the learned District Judge that Ramachandraiah had been found to have prepared bills in the fictitious names of 21 lecturers during the relevant period and had drawn cash on the basis of the pay bills including the bogus bills since May 1991 and drawn about Rs.38,00,000/- to Rs.40,00,000/-.

4. The appellants then challenged the order of the learned District Judge making an interim attachment absolute by way of a petition under Section 482 of the Criminal Procedure Code. The learned Single Judge held that the amount misappropriated is 6,57,355.90; strangely, on the basis of the charge sheet. The learned Single Judge also observed that Ramachandraiah who alone had committed the offence and not Subbarayudu, must be taken to have misappropriated the said amount since the Trial Court held the latter to be innocent. Against the aforesaid order, the appellants have preferred this appeal.

11. The orders of the Criminal Court vis-a-vis Ramachandraiah are illegal and liable to be set aside. We also find that the impugned judgment in appeal is unsustainable and is liable to be set aside. The orders of the Courts below are accordingly set aside. The appeal succeeds.

.....................................J (S.A. BOBDE) ........................................J (AMITAVA ROY) NEW DELHI, 4TH JULY, 2016

1. 3. Application for attachment of property:-

(3) An application under sub-section (1) shall be accompanied by one or more affidavits, stating the grounds on which the belief that the said person has committed any scheduled offence is founded, and the amount of money or value of other property believed to have been procured by means of the offence. The application shall also furnish-

[Added by Prevention of Corruption Act, 1988]

(b) the names and addresses of any other person believed to have or to be likely to claim, any interest or title in the property of the said person.