State Th. Cbi New Delhi vs Jitender Kumar Singh

6. We may first deal with the facts in Criminal Appeal No. 943 of 2008. The CBI, New Delhi registered a case No. RCSIG 2000/E0001 on 16.5.2000 against one P. K. Samal (A-1), Chief Manager SBI, Jaipur Road, J. K. Singh (A-2), Director M/s Mideast Integrated Steels Ltd. (MISL), New Delhi, Rita Singh (A-3), Director M/s MISL, Deepak Singh (A-4) and Proprietor Kesoram Refractory, New Delhi, under Section 120B read with Sections 420, 467, 471 IPC and Section 13(2) read with Section 13(1)(d) of the PC Act and substantive offences under Sections 420, 467, 468 and 471 IPC and Section 13(2) read with Section 13(1)(d) of the PC Act alleging that A-1, during 1996-97, was a party to a criminal conspiracy with A-2, A-3, A-4 and others with the object of cheating IDBI, Mumbai and in pursuance thereof, A-1 abused his official position to cause undue pecuniary advantage to the accused persons A-2 and A-3 and corresponding loss to IDBI, to the tune of Rs.3,52,63,550/- by negotiating forged /fictitious invoices purportedly of M/s. Kesoram Refractories, a B.K. Birla Group Company, Calcutta, against L.Cs opened by SBI, Jaipur Road.

8. The Special Judge, later, posted the case for prosecution evidence on 10.4.2003 and, on that day, two witnesses were present, but the case was adjourned. Meanwhile, on 20.6.2003, the sole public servant A-1 died. A- 3 then filed Criminal Revision No. 550 of 2003 before the High Court of Delhi on 22.7.2003 challenging the order framing the charges against him. The High Court, on 1.8.2003, directed the trial Court to record only the examination-in-chief of the witnesses. Accordingly, the examination-in- chief of 8 prosecution witnesses was recorded on different days. On 28.4.2004, A-2 filed an application before the Special Judge for dropping the charges in view of the death of A-1, the sole public servant. On 12.5.2004, A-2 filed an application before the High Court as Criminal M.C. No. 1395/2004 seeking stay of further proceedings before the trial Court, till charges are amended. The High Court, on 14.5.2004, directed the trial Court to dispose of the application filed by A-2 for modification, amendment or alteration of charges on account of death of A-1 and further directed if the Court feels it necessary, it may add, alter or amend the charges and proceed in accordance with law.

10. We may now examine the facts in Criminal Appeal No. 161 of 2011. CBI (Banks Securities & Fraud Cell), Mumbai registered an FIR on 2.7.1996 which discloses that accused no. 1, the then Chairman and Managing Director of the Bank of Maharashtra, Pune, who was working as Deputy General Manager of Bank of Maharashtra along with accused nos. 9 and 10, the employees of the Bank of Maharashtra, entered into a criminal conspiracy with an intent to cheat the bank, with the appellant (accused no. 2) and accused Nos. 3 and 5, who were working as the Managing Director, General Manager of M/s Orson Electronics Limited respectively. It was also alleged in the FIR that, during 1986-88, A-2 and other accused persons entered into a criminal conspiracy with the officers of the Bank of Maharashtra and, in pursuance to the criminal conspiracy, obtained huge credit facilities to the tune of Rs.20 crore in favour of M/s Orson Electronics Limited and M/s Nihon Electronics Limited, of which A-2 was the Managing Director/Director, knowing very well that both the companies were having very low capital and were new. It was also alleged in the FIR that those funds were not utilized for the purpose for which the same were obtained from the bank and were siphoned off through M/s Orson Electronics Limited and other fictitious firms. Consequently, accused persons failed to repay the funds of the bank, thereby the bank was cheated to the tune of Rs.20.64 crores. It was also alleged in the FIR that A-1 had abused his position as public servant and granted favour to A-2 to A-8 and thereby caused wrongful losses to the bank.

14. CBI, aggrieved by the said order, preferred Criminal Revision Application No. 389/2009 before the Bombay High Court. The High Court took the view that the jurisdiction conferred on the Special Judge is not divested on the death of an accused. The High Court held that, upon death, the case against that public servant alone abates and the rest of them can be proceeded against by the Special Judge, since the Court, once vested with the jurisdiction, cannot be divested of it on the death of a public servant. Consequently, the order passed by the Special Judge was set aside and the Special Judge, CBI, Bombay was directed to continue with the trial of the case. Aggrieved by the same, Criminal Appeal No. 161 of 2011 has been preferred by A-2.

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44. We are, therefore, inclined to allow Criminal Appeal No. 943 of 2008 and set aside the order of the High Court and direct the Special Judge to complete the trial of the cases within a period of six months.

46. Consequently, we find no error in the view taken by the Special Judge, CBI, Greater Mumbai in forwarding the case papers of Special Case No. 88 of 2001 in the Court of Chief Metropolitan Magistrate for trying the case in accordance with law. Consequently, the order passed by the High Court is set aside. The competent Court to which the Special Case No. 88 of 2001 is forwarded, is directed to dispose of the same within a period of six months. Criminal Appeal No. 161 of 2011 is allowed accordingly.