S.V.L.Murthy vs State Rep.By Cbi,Hyderabad

3. Accused No. 4 - S.V.L. Murthy was the Branch Manager of Begum Bazar Branch of State Bank of India (for short, "SBI"). Accused No. 1 - Venugopal Loya was proprietor of some business concerns, namely, M/s Shobhachand Shivijiram ("SS"), M/s Sreeji Industries ("SI") and M/s Harikrishan Roopchand ("HR"). Whereas SS and HR used to deal in wholesale trade in grains and spices, SI was a plastic manufacturing concern. Accused No. 2 - Gopaldas Dharak was a partner of M/s Gayatri Traders 3 ("GT"). He used to operate current account in the same Branch. Accused No. 3 - Radheshyam Dharak, partner of GT, an Accountant working in the firms of Accused No.1. Accused No. 5 - P. Jayakumar was the Accountant in the Begam Bazar Branch of the State Bank of India. Accused No. 6 - Y. Narahari Murthy was the Charge Branch Manager.

6. Accused No. 4 - S.V.L. Murthy, however, stopped this discounting facility with SS. inter alia on the premise that three bills purchased by the Bank and sent to Salem Branch for collection had been returned unpaid. So far as the bill limit due in account of SS was concerned, the same stood at 4 Rs.20,18,240/- out of which Accused No. 1 is said to have made payment of Rs.5,00,314/- for returned bills with interest within 2 hrs. It is stated that on or about 7.4.1989, a meeting was held at the residence of the Regional Manager (P.W. 20 - V. Ramamurthy). Accused No. 1 is alleged to have complained that Accused No. 4 had stopped discounting of cheques to him whereupon Regional Manager (P.W. 20) allegedly instructed Accused No. 4 to continue the practice of discounting cheques to Accused No. 1 on the premise that he was a reputed customer of the Bank. Pursuant thereto, the discounting facility was made available with Accused No.1 upon obtaining sufficient collateral security, i.e., title deeds of moveable and immoveable properties of Accused No.1 worth Rs.1.09 lacs.

7. The Bank allegedly sanctioned discounting facility to the extent of Rs.30 lacs on the basis of collateral securities furnished on or about 15.4.1989. However, ten cheques aggregating to Rs.29,86,219/- were discounted and sent for clearing by Bank, which were returned unpaid from clearing house. Appellants contended that they were sent for clearing without proper stamping/endorsement; they did not reach drawer bank at all. Indisputably, however, the Regional Office issued instructions for stopping cheque discounting facility without notice. It is stated that the appellants paid a sum of Rs.29,90,941/-, which covered the discounting amount together with interest on or about 25.4.1989. The Bank seized office-cum- 5 godown and stocks of SS at about 11.45 a.m. on the same day. On or about 26.4.1989, 26 account payee cheques were presented in various banks across the counter which should have been presented through clearing. However, Rs.1,28,63,441/- was said to have remained outstanding.

Indisputably, disciplinary proceedings were initiated against the Accused No. 4, Accused No. 5 as also P.W. 20.

In the said disciplinary proceedings, they were placed under suspension. They were, however, reinstated in service. Whereas P.W. 20 7 was censured, Accused No. 4 was inflicted with a punishment of stoppage of five increments. Some minor punishments was also imposed on the Accused No. 5.

14. Before the learned Special Judge, a large number of witnesses were examined. They included P.W. 1 - Sh. R. Vijay Kumar, Branch Manager, State Bank of India, Karimnagar Branch, who was holding the post of Manager, in the Begum Bazaar of the State Bank of India, Hyderabad from 31.8.1987 to 9.8.1988, i.e., prior to Accused No.4. P.W. 19 - S.V. Panchapakesan, Dy. General Manager, SBI Capital Market Bombay, who 9 worked as Administrative Officer Advances in the Regional Office and P.W. 20 - V. Ramamurthy, the Additional Manager-cum-Deputy General Manager of the Regional Offices.

16. Feeling aggrieved and dissatisfied with the aforesaid judgment, appellants preferred appeals.

23. The prosecution apart from the fact that it had utterly failed to bring on record any evidence of conspiracy must also be held to have failed to bring on record any evidence of wrongful gain so as to attract the provisions of the Prevention of Corruption Act, 1988 or otherwise.

It is, therefore, a case which comes within the purview of the dicta laid down therein. It is significant to notice that in that case itself this Court 38 keeping in view the findings arrived at therein allowed the appeal preferred by the accused persons and set aside the judgment of conviction.

It is one thing to say that ordinarily a concurrent finding of fact shall not be interfered with by this Court in exercise of its jurisdiction under Article 136 of the Constitution of India but it is another thing to say that despite opining that accused are entitled to acquittal, a judgment of conviction passed against them should be upheld. In fact, the jurisdiction of this Court must be exercised wherever it is required to do so for securing the ends of justice and to avoid injustice.

31. The upshot of our discussions is:-

(d) Appellants acted on instructions by the higher authority.

(e) The prosecution evidence does not establish any conspiracy on their part vis-`-vis Accused Nos. 1, 2 and 3.

32. For the aforementioned reasons, the impugned judgment and order of the High Court, being unsustainable, is set aside. The appeals are allowed. Appellants are are on bail. Their bail bonds shall stand discharged.

May 06, 2009