C.B.I vs Jagjit Singh

3. The said case relates to CBI:SPE:ACB:Kolkata Case No.R.C. 12(A)/2003 under Sections 420/471 of the Indian Penal Code. The First Information Report(FIR) in question was lodged on the basis of a reliable information which was received in the office of the SP, CBI, ACB, Kolkata to the effect that one Shri Sanjib Kumar Chatterjee while functioning as Sr. Manager, Indian Overseas Bank (IGS), Shreemani Market Branch, Kolkata during the year 1998-2000 had entered into a criminal conspiracy with private persons, namely, Shri Jagjit Singh, Director of M/s. Tag Reachers (P) Ltd. (respondent herein), Shri Raj Kumar Agarwal, Shri Virendra Jain and unknown officers of the Regional Office, Business Department of Indian Overseas Bank, Kolkata in order to cause wrongful loss to the said Bank in the matter of term/demand loans, in favour of M/s. Tag Reachers (P) Ltd. It was further alleged in the FIR that in furtherance of said criminal conspiracy, term/demand loans amounting to Rs.1,94,50 lakhs were fraudulently and dishonestly sanctioned to the said Company by the Regional Office of Indian Overseas Bank(IOB), Kolkata and out of the said amount Rs.1.5 crores remained outstanding due to non-payment by the party. All the accounts of parties involved became inoperative, and this resulted in corresponding wrongful loss to the said Bank.

4. It is further alleged that on the recommendation of the said Shri Sanjib Kumar Chatterjee, Sr. Manager, three term loans were sanctioned by the Regional Office of IOB in August, 1998, October, 1999 and August, 2000 in favour of M/s. Tag Reachers (P) Ltd. for purchase of 13 Nos. of LPG Tankers (4+4+5 respectively) without proper verification, documentation and by manipulating exorbitant price of the collateral properties offered by M/s. Tag Reachers (P) Ltd.

5. The said information has also disclosed that when M/s. Tag Reachers (P) Ltd. started defaulting the repayment in the aforesaid term loan accounts, the accused persons connived together and in pursuance of the said criminal conspiracy Shri Jagjit Singh as Director of M/s. Tag Reachers (P) Ltd. approached Shri Sanjib Kumar Chatterjee, Sr. Manager in the month of March, 2000 for a demand loan of Rs.32.50 lakhs against the security of National Saving Certificate/Kishan Vikash Patra of the face value of Rs.50 lakhs. The said securities were in the form of NSC for Rs.7 lakhs and Kishan Vikash Patra of Rs.18 lakhs standing in the name of the aforesaid Shri Raj Kumar Aggarwal and Kishan Vikash Patra of Rs.25 lakhs standing in the name of the aforesaid Shri Virendra Jain. All the NSCs and KVPs were alleged to be forged and fabricated and were not issued from the Middleton Row and Park Street Post Offices from where they were shown to have been reportedly purchased. Similarly, no lien on them in favour of the IOB were created by the aforesaid two Post Offices. Lien were found to be forged and no Bank Officer had in fact ever approached these two Post Offices for the same. In spite of this and knowing fully well that the amount of the aforesaid term loans were diverted by Shri Jagjit Singh to his restaurant business, Shri Sanjib Kumar Chatterjee, Sr. Manager recommended sanction of Demand loan for Rs.32.50 lakhs in favour of M/s. Tag Reachers (P) Ltd. With the help of unknown officials of the Regional Office of IOB, Kolkata a demand loan of Rs.32.50 lakhs was sanctioned in favour of the said company on 30th March, 2002.

6. It has also been disclosed by the said information that though it was the last day of the financial year, Rs.27.25 lakhs out of Rs.32.50 lakhs was transferred to the Term Loan Account of M/s. Tag Reachers (P) Ltd. on 30th March, 2002 itself towards partial adjustments of the aforesaid term loan account whereas the rest of the amount was withdrawn by M/s. Tag Reachers (P) Ltd., Kolkata.

In the instant case, the High Court has not considered the above factors while passing the impugned order. Hence, we are of the opinion that the High Court erred in addressing the issue in right perspective.

16. In such circumstances, we set aside the impugned judgment and order dated 31st March, 2010 passed by the High Court in CRR No.719 of 2010 and direct the trial court to proceed the matter in accordance with law and to conclude the trial expeditiously. The appeal is allowed with the aforesaid observation.