TaxTMI 
TaxTMI 
2013 (11) TMI 1627
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts and quashed criminal proceedings against some of the 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the accounts of the accused presenting such cheques 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 Immediately on the account being credited with the cheque amount, such amount was withdrawn.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 Against such cheques also the accounts of the accused were credited with higher amounts and the money used to be withdrawn.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 Rs. 2.51 crores. According to the charge-sheet, accused Senthil Kumar presented 1278 cheques during the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....allenged by the accused respondents. 6. A perusal 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 Negotia....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... order under the Code; (ii) to prevent abuse of 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 pri....