2020 (1) TMI 1421

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..... ant of cash credit limit when their father was the President of the Bank. The power under Section 482 of the Code of Criminal Procedure, 1973 cannot be exercised where the allegations are required to be proved in court of law. The manner in which loan was advanced without any proper documents and the fact that the respondents are beneficiary of benevolence of their father prima facie disclose an offence under Sections 420 and 120-B IPC. The order of the High Court quashing the charges against the respondents is not sustainable in law and the same is set aside - Appeal allowed.
L. Nageswara Rao And Hemant Gupta, JJ. For the Appellant(s) : Mr. Dhruv Tamta, Adv., Ms. Tanvi Bhatnagar, Adv., Mr. Harsh Parashar, AOR For the Respondent(s) : M .....

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..... sed. It was alleged that accused Harshvardhan Singh Jadon submitted an application on 2nd November, 2000 for grant of cash credit limit of ₹ 25 lakhs and that the cash credit limit was sanctioned without following the due procedure. It was also alleged that mortgage deed was not registered nor signature of original loanee was found on the mortgage paper. It is also pointed out that an amount of ₹ 59,88,327/- was balance on 1st December, 2001 even after depositing ₹ 25 lakhs and that the President has done the renewal of cash credit limit at his own level and its confirmation was got done later on from the loan Sub-Committee, while the case was of the son of the President alone. In respect of Yogendra Singh, again the alleg .....

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..... their duties in accordance with prescribed norms and regulations. However, that may not be a ground to proceed against a person who has been granted cash credit facility. xx xx xx 14. In the instant case, the uncontroverted allegations taken in their entirety do not prima facie establish that the applicants deceived the Bank Authorities or fraudulently or dishonestly induced them to sanction cash credit facility. Thus, the basic ingredient to constitute the offence of 420 of IPC is totally missing in the chargesheet." 5. We find that the High Court has examined the entire issue as to whether the offence under Sections 420 and 120-B is made out or not at pre trial stage. The respondents are beneficiary of the grant of cash credit limit w .....

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