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2015 (8) TMI 1535 - SC - Indian LawsForgery - criminal conspiracy - cheating and use of forged documents - embezzlement of public money - respondent wants the proceedings to be quashed on account of settlement with the bank - HELD THAT - The development in means of communication, science technology etc. have led to an enormous increase in economic crimes viz. phishing, ATM frauds etc. which are being committed by intelligent but devious individuals involving huge sums of public or government money. These are actually public wrongs or crimes committed against society and the gravity and magnitude attached to these offences is concentrated at public at large. The inherent power of the High Court under Section 482 Cr.P.C. should be sparingly used. Only when the Court comes to the conclusion that there would be manifest injustice or there would be abuse of the process of the Court if such power is not exercised, Court would quash the proceedings. In economic offences Court must not only keep in view that money has been paid to the bank which has been defrauded but also the society at large - If the prosecution against the economic offenders are not allowed to continue, the entire community is aggrieved. The High Court while exercising its inherent power ignored all the facts viz. the impact of the offence, the use of the State machinery to keep the matter pending for so many years coupled with the fraudulent conduct of the respondent - 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 - Appeal allowed - decided in favor of appellant.
Issues Involved:
1. Quashing of criminal proceedings by the High Court under Section 482 Cr.P.C. 2. Allegations of forgery and cheating involving substantial public money. 3. Settlement between the accused and the bank and its impact on criminal proceedings. 4. Applicability of precedents like Nikhil Merchant's case and Vikram Anantrai Doshi's case. Issue-wise Detailed Analysis: 1. Quashing of Criminal Proceedings by the High Court under Section 482 Cr.P.C.: The High Court of Delhi exercised its inherent power under Section 482 Cr.P.C. to quash the criminal proceedings against the respondent in RC No.3 of 1987. The Supreme Court examined whether this exercise of power was justified. It was highlighted that the inherent power should be used sparingly and only when there would be manifest injustice or abuse of the process of the Court if such power is not exercised. The Court emphasized that economic offences, which have a societal impact, should not be quashed merely on the ground of settlement between parties. 2. Allegations of Forgery and Cheating Involving Substantial Public Money: The case involved allegations that the respondent and another individual introduced themselves as proprietors of two firms and opened accounts with the New Bank of India (now PNB). They availed various credit facilities using forged documents, resulting in a loss of Rs. 10.62 lakhs to the bank. The charges included Sections 420, 467, 468, and 471 IPC read with Section 120-B IPC. The Supreme Court noted that the allegations were serious, involving forgery and cheating, which are public wrongs and have significant societal impacts. 3. Settlement Between the Accused and the Bank and Its Impact on Criminal Proceedings: The High Court quashed the proceedings based on a settlement between the respondent and the bank, relying on the precedent set in Nikhil Merchant's case. However, the Supreme Court distinguished the present case from Nikhil Merchant's case, noting that the latter involved a civil dispute settled through compromise, whereas the present case involved serious criminal charges with substantial progress in the trial (39 witnesses examined). The Court emphasized that economic crimes should not be quashed merely due to settlements, as they affect society at large. 4. Applicability of Precedents Like Nikhil Merchant's Case and Vikram Anantrai Doshi's Case: The Supreme Court referred to the decision in Vikram Anantrai Doshi's case, which distinguished Nikhil Merchant's case and emphasized that economic offences involving public money are societal wrongs. The Court reiterated that such offences create a hazard in the financial interest of society and should not be quashed merely on the basis of settlements. The Court criticized the High Court for not considering the societal impact and the fraudulent conduct of the respondent while quashing the proceedings. Conclusion: The Supreme Court allowed the appeal, setting aside the High Court's order and directing the trial court to proceed with the matter expeditiously. The Court underscored that it had not expressed any opinion on the merits of the case but emphasized the importance of addressing economic offences seriously, considering their impact on society.
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