Case BriefsHigh Courts

Kerala High Court: The Bench of R. Narayana Pisharadi, J. quashed criminal proceedings against a person accused of cheating a bank holding that the case against him would be an abuse of process of the Court.

Petitioner herein was a customer of Bank of Baroda for many years. He introduced accused’s 1 to 3 to the said bank to enable them to open an account therein. Subsequently, the accused used credit/purchase facility given to them by the bank and obtained approximately Rs 1 crore from it. It was alleged that the accused had hatched a conspiracy to cheat the bank and cause loss to it. A case was registered against the accused and the petitioner under Section 120B, and Sections 420 and 406 read with Section 34 of the Penal Code, 1860. The instant petition was filed under Section 482 of the Code of Criminal Procedure, 1973 requesting quashing of proceedings against petitioner.

The Court noted that the only allegation against the petitioner was that he introduced accused to the bank to enable them to open an account. He did not falsely misrepresent the bank; there was no material indicating any transaction between the petitioner and other accused. No material was produced by the prosecution to prove that the introduction of accused to the bank, by the petitioner, was part of a conspiracy to cheat the bank. Therefore, no question of dishonest misappropriation of any amount by him arose.

It was held that it is a normal banking practice that a person who wants to open an account in a bank will have to get himself introduced by another account holder in the same bank. The mere act of introducing a person to a bank to enable such person to open an account in the bank, without anything more, does not attract the offence of cheating punishable under Section 420 IPC against the person who makes the introduction, even when the person introduced by him subsequently commits an act of cheating against the bank. Reliance in this regard was placed on Manoranjan Das v. State of Jharkhand, (2004) 12 SCC 90.

In view of the above, the petition was allowed. [K.J. Hubert v. Sub Inspector of Police, 2019 SCC OnLine Ker 1122, Order dated 04-04-2019]

Case BriefsHigh Courts

Kerala High Court: The Bench of T.V. Anil Kumar, J., while pronouncing an order quashed the criminal proceedings stating them to be of a civil dispute.

The facts of the case as presented in the present case are that, the prosecution case as against the petitioner is that, he after having obtained a mobile post-paid connection in his name, failed to discharge his liability for user charges for a period of 5 months. Allegation was that petitioner incurred a monetary liability of Rs 97,678 and after making a part payment of Rs 10, 580 he kept the balance in arrears. According to the prosecution, the default amounts to an offence of cheating punishable under Section 420 IPC.

Petitioner’s case is made out in the following manner, that the transaction in question is based on an agreement between the parties which turns the alleged liability to be purely of civil nature, due to which the petitioner sought consequential criminal proceedings to be quashed.

High Court on marshalling the materials on record, concluded by stating that, the transaction involved between the parties is of a civil dispute as a purported liability of the petitioner seems to have been arisen from breach of promise or agreement.

“Mere breach of trust or agreement will not by itself amount to a criminal offence under Section 420 IPC.”

Therefore, as the legal proposition does not match the materials on record as well as the allegations, the criminal proceedings require to be quashed in view of the above stated. [Abdul Hakkem v. State of Kerala, 2019 SCC OnLine Ker 974, Order dated 08-03-2019] 

Case BriefsHigh Courts

Jammu & Kashmir High Court: A Single Judge Bench of Sanjay Kumar Gupta, J., dismissed a bail petition filed by the petitioners under Section 497-A of the Code of Criminal Procedure, seeking bail in a matter involving offences under Sections 420,467, 468, 471 of the Ranbir Penal Code and Section 5(2) of J&K Prevention of Corruption Act, 2006.

The main issue that arose before the court was whether the petitioners are entitled to get bail in a matter involving alleged offences of corruption and cheating.

The Court observed that the petitioners were alleged to have made back-dated appointments in lieu of money from the beneficiaries. The petitioners had made back-dated appointments and as such, it is an action which is covered under the category of cognizable offences. The appointments made by the petitioner were allegedly illegal, also some of the appointees were students and the others were running their own businesses. Another serious allegation that was leveled against the petitioners was that they have tampered with the records of daily wage workers and have replaced their names with the names of appointees who were given appointment by the petitioners. The Court relied upon the judgment of State of A.P. v. Bimal Krishna Kundu, (1997) 8 SCC 104, wherein it was held that arming an accused with a bail order, when serious allegations of corruption are leveled against him/her, would hamper the investigation and would also impede the prospects of unearthing all ramifications involved in the conspiracy. 

The Court held that the allegations leveled against the petitioners were quite serious in nature and hence granting them bail would not be the appropriate thing to do. Further, all the aspects of the matter require detailed investigation and for that purpose custodial interrogation is also required. Resultantly, the bail petition was dismissed.[Mohd. Kubir Malik v. State of J&K, 2018 SCC OnLine J&K 788, order dated 03-11-2018]