C.B.I vs Maninder Singh

2. Brief facts which led to the filing of this criminal appeal are as under:- The complainant-Chief Vigilance Officer of the New Bank of India (presently ‘Punjab National Bank’ for short ‘PNB’) lodged the complaint alleging that two persons namely Suresh Kumar Puri and Maninder Singh introduced themselves as proprietors of M/s Fashion India and M/s Ronney Exports respectively and opened their current accounts with their branch at Miller Ganj in Ludhiana on 08.11.1986. One Manger namely A.K. Satija of IBD Cell of the New Bank of India at Ludhiana allowed advance amount worth Rs.5.31 lakhs each to these two firms on production of Bill of Lading, GR form and other bills and those foreign bills purchased by the Bank on 27.11.1986 returned unpaid. During the enquiry made by the bank, Bill of Lading presented by the proprietors of the abovesaid two firms were found forged. Manager-A.K. Satija helped Maninder Singh to avail advance upto Rs.10.62 lakhs by opening two different accounts just to ensure that the pecuniary limits allowed may fall under his power; however according to prosecution nature of transactions reveal that parties were one and the same. Respondent and other co-accused thus entered into a criminal conspiracy during the period November-December 1986, with intention to cheat New Bank of India (PNB) to the tune of Rs.10.62 lakhs. On the basis of the above complaint, case was registered under Section 120-B IPC read with Section 420 IPC and Section 5(2) read with Section 5(1)(d) of Prevention of Corruption Act, 1947 and further substantive offences under Sections 420, 467, 468 and 471 IPC & Section 5 (2) read with Section 5 (1) of Prevention of Corruption Act, 1947 in Crime No.RC.3/87-SIU(X)/CBI/SPE dated 28.08.1987. After completion of the investigation, a chargesheet was filed on 22.12.1990 in the Court of Chief Metropolitan Magistrate, Tis Hazari Court, Delhi against the accused persons collectively for the offences under Section 120-B IPC read with Section 420 IPC and substantive offences under Sections 420, 467, 468 and 471 IPC.

3. Noticeably, on 01.02.1995 i.e. after four years the accused- respondent Maninder Singh was arrested by CBI from IGI Airport and the CMM vide order dated 16.09.1995 framed charges against accused respondent Maninder Singh and other accused. In the trial, thirty nine prosecution witnesses were examined. However on 29.01.2005, Maninder Singh arrived at a settlement with the New Bank of India, Ludhiana and on 29.11.2005, the respondent-accused filed an application before the CMM for pleading guilty for the offences alleged, but on the date of hearing i.e. 08.12.2005, the accused respondent Maninder Singh did not appear in the court and his advocate withdrew the aforesaid application. Respondent herein moved a Crl. Misc. Petition bearing No.2083 of 2006 under Section 482 Cr. P.C. for quashing of the FIR against him on the ground that a settlement is arrived between the parties and amounts are repaid to bank. The High Court placing reliance on Nikhil Merchant vs. CBI & Anr., (2008) 9 SCC 677, vide impugned order dated 10.02.2009 allowed the petition and thereby directed that criminal proceedings in RC No.3 of 1987 and all consequential proceedings thereto against the respondent shall stand quashed. The appellant-CBI herein assails the correctness of the order passed by the High Court.

7. In the case at hand, respondent and one Suresh Kumar Puri introducing themselves as proprietors of M/s Ronney Exports and M/s Fashion India opened current accounts Nos.4443 & 4441 on 08.11.1986 with New Bank of India (PNB) and by forged documents they had availed various facilities viz.:- (i) Anticipated case incentive advance Rs.50,000/- to each of the firms; (ii) F.B.P. against order documents (the bills of ladings now turned out to be forged) Rs.3,05,000/- each; (iii) F.B.P. against order documents (the bills of ladings now turned out to be forged) additional funds released Rs.22,000/- each; (iv) P.C.L. against orders (Packing Credit Loans) Rs.1,50,000/- each and interest Rs.4,000/- to each of the firms. In the charges, it is further alleged that A.K. Satija, the then Manager, IBD Cell, New Bank of India, Ludhiana has sanctioned various credit facilities to respondent and Suresh Kumar Puri viz.: (i) Packing Credit against confirmed orders; (ii) Advance against anticipated cash incentive/duty draw back; (iii) Advance against cash incentive and duty draw back and (iv) Advance against foreign bill purchase. Chargesheet refers to various transactions by which bank amounts were credited to the accounts of the said firms based on forged documents.

9. Placing reliance upon Nikhil Merchant’s case, the High Court quashed the criminal proceedings qua the respondent on the ground that the respondent has settled the matter with the bank. In Nikhil Merchant’s case the dispute between the company and the bank which was set at rest on the basis of compromise arrived at by them and dues of the bank have been cleared. In Nikhil Merchant’s case certain documents were alleged to have been forged by the respondent thereon in order to avail credit facilities beyond the limit to which the company was entitled. The case at hand is clearly distinguishable on facts. The chargesheet referred to number of transactions based on such forged documents bank money was credited to the accounts of firms of the respondent. For instance, respondent Maninder Singh and Suresh Kumar Puri are said to have submitted the forged documents of shipment for bill purchased on 27.11.1986. These documents included Bill of Lading and invoices which were found forged and according to the prosecution no consignment was sent by the respondent to foreign companies. It is further alleged that the Bill of Lading and G.R. Form and Shipping Bill also contained forged signatures of customs officers.

14. The appeal is allowed and the order passed by the High Court is set aside and the trial court is directed to proceed with the matter expeditiously in accordance with law. We make it clear that we have not expressed any opinion on the merits of the matter.

August 28, 2015