TaxTMI 
TaxTMI 
TaxTMI 
2008 (8) TMI 966
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....allage Ltd., Mumbai, was made the accused No. 4. The other three accused are officials of the Andhra Bank. 3. The accused No. 4-Company was granted financial assistance by the Andhra Bank, Opera House Branch under various facilities. On account of default in repayment of the loans, the Bank filed a suit for recovery of the amount payable and in addition, on 19th December, 1995, a complaint was made by the General Manager and the Chief Vigilance Officer of the Bank on the basis whereof investigations were undertaken by the CBI, which filed the above-mentioned charge sheet in the Court of the Special Judge on 30th December, 1998. The allegations under the charge sheet indicate that the accused persons conspired with each other in fraudulently diverting the funds of the Andhra Bank. Offences alleging forgery were also included in the charge sheet. The above-mentioned suit between the Company and the Bank, to which the appellant herein was also a party, was disposed of on a compromise arrived at between the parties which was reduced into writing, and was filed in the suit. On the basis of the consent terms, the suit was compromised upon the defendants agreeing to pay the amounts due a....
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....volving matrimonial disputes and offences, this Court held that even though the provisions of Section 320 of the Code of Criminal Procedure would not apply to such offences, which are not compoundable it did not limit or affect the powers under Section 482 and the powers conferred on the High Courts and the Supreme Court under Articles 226 and 136 of the Constitution of India. Referring to the decision of this Court in State of Haryana v. Bhajan Lal 1992CriLJ527 this Court observed that the categories indicated in the said case which warranted exercise of power under Section 482 CrPC were only illustrative and not exhaustive. This Court ultimately held that the High Court in exercise of its inherent powers can quash criminal proceedings or a FIR or complaint and Section 320 CrPC does not limit or affect the power of the High Court under Section 482 of the Code. 7. After considering the said decision in the light of the submissions made on behalf of the respective parties, the High Court took the view that in the Duncans Agro case (supra) this Court was considering the situation involving Section 420 IPC which was compoundable under Section 320(2) CrPC, while in the instant case, t....
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.... this case also since in exercise of inherent powers, this Court could transcend the limitation imposed under Section 320 CrPC and pass orders quashing criminal proceedings or FIR or complaint even where non- compoundable offences were involved. 11. Mr. Nariman submitted that since the disputes out of which the criminal proceeding has arisen have been compromised between the appellant and the Bank, continuing with the complaint would only amount to misuse of the process of Court. 12. In addition to his above submissions Mr. Nariman submitted that after the chargesheet was filed by the CBI on 30.12.1998, no further steps have been taken in the matter and that even charges have not been framed. He submitted that the proceedings were stayed by this Court on the SLP filed by the appellant only on 3.1.2006. He also submitted that even the Bank had not taken any action against its employees against whom chargesheet had been filed. He urged that from the manner in which the entire matter has been pursued no other object has been sought to be achieved except to harass the appellant for the last 14 years when the initial complaint was lodged by the Bank. 13. It was lastly submitted by Mr....
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....so of forgery on account of the various documents which had been prepared under the signature of the appellant showing inflated stocks to induce the Bank to provide additional credit facility and funds which it would not have otherwise been legally entitled to. 16. Rebutting the submissions made on behalf of the appellant, the learned Additional Solicitor General referred to the provisions of Sections 463 and 464 IPC which relate to the definition of "forgery" and "the making of a false document". He pointed out that under the definition of forgery in Section 463 any person making any false document or false electronic record or part of a document or electronic record with intent to cause damage or injury to the public or to any person or to support any claim or title or to cause any person to part with any property or to enter into any expressed or implied contract or with intent to commit fraud or that fraud may be committed, commits forgery. Referring to Section 464 he submitted that a person is said to make a false document or false electronic record who dishonestly or fraudulently, inter alia, makes, signs, seals or executes a document or part of a document with the intention....
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.... have been to misrepresent the financial status of the company, M/s Neemuch Emballage Limited, Mumbai, in order to avail of credit facilities to an extent to which the company was not entitled. In other words, the main intention of the company and its officers was to cheat the Bank and induce it to part with additional amounts of credit to which the company was not otherwise entitled. 22. Despite the ingredients and the factual content of an offence of cheating punishable under Section 420 IPC, the same has been made compoundable under Sub-section (2) of Section 320 Cr.P.C. with the leave of the Court. Of course, forgery has not been included as one of the compoundable offences, but it is in such cases that the principle enunciated in B.S. Joshi's case (supra) becomes relevant. 23. In the instant case, the disputes between the Company and the Bank have been set at rest on the basis of the compromise arrived at by them whereunder the dues of the Bank have been cleared and the Bank does not appear to have any further claim against the Company. What, however, remains is the fact that certain documents were alleged to have been created by the appellant herein in order to avail of....