Prima facie materials can sustain prosecution at charge stage despite repayment, where alleged conspiracy and irregular sanctioning remain under scrutiny.

At the stage of framing charge, inherent jurisdiction to quash criminal proceedings is confined to whether the record discloses sufficient material for a prima facie case, not to testing final proof. Here, the investigation materials indicated sanction and drawal of large overdraft facilities beyond the branch manager's financial competence and supported an alleged wider criminal conspiracy. Repayment of the facilities did not by itself negate scrutiny of how the facilities were granted and enjoyed. On that basis, continuation of the prosecution at the charge stage was justified and quashing was refused.

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Issues: Whether the High Court ought to have exercised its inherent jurisdiction to quash the criminal proceedings against the appellant at the stage of framing of charge, and whether the materials collected in investigation disclosed a prima facie case, including an of criminal conspiracy, sufficient to justify continuance of the prosecution.

Analysis: The appellant sought discharge on the footing that the overdraft facilities had been repaid and that there was no direct allegation of illegal gratification or overt act by him. The material on record, however, showed that large overdraft facilities were sanctioned and drawn beyond the Branch Manager's financial competence, that the transaction was part of a wider alleged conspiracy, and that the prosecution had collected enough circumstances for scrutiny. At the stage of considering quashing or discharge, the court was concerned only with whether the record disclosed sufficient material for proceeding, not with testing the ultimate proof of guilt. The existence of repayment did not by itself eliminate the need for investigation into the circumstances in which the facilities were granted and enjoyed.

Conclusion: The materials were sufficient to sustain the prosecution at the stage of charge, and refusal to quash the proceedings was justified.

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