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TMI Blog2013 (11) TMI 1627X X X X Extracts X X X X X X X X Extracts X X X X ..... accused in Criminal Case No. 462 of 2004 pending before the learned Magistrate-II Tiruppur for offences punishable under Sections 406, 409, 420 and 120(b) IPC. 3. Before granting relief to the five petitioners out of ten accused, the High Court noted the relevant facts in brief which disclose that out of ten accused in the charge-sheet dated 20th September 2004, the first five accused are Managing Director/Managing Partner/Director/Proprietor of different private limited companies, partnership firms/proprietary firms. Some of them are related to each other and some are family friends. Accused nos. 6 to 10 are Managers and Officials of Tamil Nadu Mercantile Bank Limited (hereinafter referred to as Bank ), Tiruppur alleged to have collude ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before they were sent to the drawee bank for clearance. Immediately on the account being credited with the cheque amount, such amount was withdrawn. Later, when the cheques returned unhonoured on account of insufficient balance, the accused, for clearing the debt used to deposit similar cheques for even higher amounts. Against such cheques also the accounts of the accused were credited with higher amounts and the money used to be withdrawn. Due to repeat of such trick several times, by the time the fraud was discovered, the Trippur Branch had been defrauded to the tune of approximately ₹ 2.51 crores. According to the charge-sheet, accused Senthil Kumar presented 1278 cheques during the period, accused Sanjay presented 99 cheques, acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usal of the judgment and order under appeal shows that the High Court has been persuaded to quash the criminal proceedings against the accused respondents mainly on the grounds that : (1) The dispute between the Bank and the accused respondent is of civil nature, (2) Although some of the alleged fraudulent operations were performed by the accused in the name of a company viz. Shri Deepadharani Yarns Pvt. Ltd., the company has not been arrayed as an accused while three of its Directors are so arrayed, and (3) The bank has a remedy for recovering the money in question for which it has obtained an order of the DRT and can also take recourse to proceedings under Section 138 of the Negotiable Instruments Act or civil proceedings. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process of the Court and (iii) to otherwise secure the ends of justice. It was reiterated that such extraordinary power should be exercised sparingly and with great care and caution. 9. This judgment also supports the other submission on behalf of the appellant that the High Court erred in interfering with criminal proceeding on the ground that bank could recover the loss caused by fraud through orders of Debt Recovery Tribunal or through the proceedings under the Negotiable Instruments Act or civil proceedings. Even if the accused voluntarily at a later stage settles the monetary claim, that cannot be made a ground to quash the criminal proceedings unless the well established principles for exercise of power under Section 482 Cr.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant facts, particularly the charge- sheet, we find that it is not a case requiring interference in exercise of power under Section 482 Cr.P.C. The proceedings cannot be termed as an abuse of the process of court because the allegations if accepted in entirety are most likely to make out criminal offence alleged against the accused respondents. The interest of justice is also not attracted in the present case to warrant interference with the criminal proceedings. 13. In our considered view, the High Court ought to have taken note of the fact that on two previous occasions the respondents accused failed to get any relief under Section 482 Cr.P.C. and they did not challenge an order passed by the High Court at the instance of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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