TaxTMI 
TaxTMI 
2012 (7) TMI 1102
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....by relaxing the condition of furnishing bank guarantee with regard to the quantum and also extend the period for providing such bank guarantee by a further period of six weeks. 2. Crl.P.No.5197 of 2012 has been filed by M/s.Jagati Publications Limited seeking a direction to the respondent to defreeze all the collection and payment accounts of the petitioner held at various locations as per the details given in the schedule of the petition. 3. Crl.M.P.No.5058 of 2012 has been filed by M/s.Oriental Bank of Commerce seeking clarification in the common order passed by this Court on 23.05.2012 in Crl.P.M.P.Nos.4520, 4521 and 4522 of 2012 in Crl.P.Nos.4523, 4524 and 4525 of 2012 permitting the petitioner bank to appropriate the fully discharged FDRs kept on lien with it to the tune of ₹ 51,78,13,551/- (subject to exchange rate fluctuates as on the date of payment) as a recovery of its amounts covered by honouring all the outstanding FLCs issued by the petitioner bank prior to freezing order issued by the second respondent (Central Bureau of Investigation) in Proceedings No.DPHYD/RC19(A)/2011/437 dated 08.05.2012. 4. It is not in dispute that on 23.05.2012, this Court passed c....
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....tion 102 Cr.P.C. by its letter dated 14.06.2012. Finally, the petitioners' case is that the respondent/CBI may be directed to defreeze all the collection and payment accounts of the petitioner at various locations as per the details given in the schedule of the petition. 7. The case of the petitioner - M/s. Oriental Bank of Commerce in Crl.M.P.No.5058 of 2012 is that the first respondent (M/s.Jagati Publications Limited) approached it with a request to issue various letters of credit to various foreign banks to import news print and that the petitioner bank agreed to issue the Foreign Letters of Credit (FLCs) subject to the first respondent therein fulfilling al its requisite formalities and that the first respondent fulfilled all the formalities of the Bank including handing over the fully discharged FDRs and various documents empowering the petitioner bank to appropriate the proceeds of the discharged FDRs to the tune of the original sanctioned limit to the extent of ₹ 95.00 crores for honouring the FLCs and that thereafter, the petitioner bank issued Foreign Letters of Credit to various Foreign Banks and that total amount of the letters of Credits to be honoured by the p....
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....a condition for defreezing the current accounts, the interest of the CBI is adequately protected. It is also his submission that the petitioner has to utilize the monies in the current accounts in accordance with the directions given by this Court and that the petitioner cannot spend any amount without intimating the CBI and that the CBI has been given an opportunity to verify all the cheques issued by the petitioner. Learned counsel further submits that since immovable property worth hundred of crores have been attached by the orders of this Court and since the petitioner is unable to provide bank guarantee for the said sum lying in the current accounts, the conditions imposed by this Court while defreezing the accounts of the petitioner vide common order dated 23.05.2012 may be relaxed. 12. Learned standing counsel for M/s.Oriental bank of Commerce - petitioner in Crl.M.P.No.5058 of 2012 submits that the Bank has to honour the letters of Credit in view of the international commitments, otherwise, the letters of credit issued by the petitioner bank will never be accepted by the foreign banks and in the above circumstances, the common order passed by this Court on 23.05.2012 may ....
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....serving the conditions imposed by this Court vide its common order dated 23.05.2012, I am inclined to relax the conditions as follows:- "On condition of the petitioner furnishing bank guarantee for half of the amount lying in the current accounts and on further condition of furnishing security by depositing the title deeds of any immovable property or properties of the petitioners worth more than ₹ 5.00 crores (i.e., other than the properties in respect of which orders have already been passed earlier on 23.05.2012) to the satisfaction of the Principal Special Judge for CBI Cases, Hyderabad, the respondents shall defreeze the petitioners current accounts." 18. Crl.M.P.Nos.4843, 4844 and 4845 of 2012 are ordered accordingly. 19. As far as Crl.M.P.No.5058 of 2012 filed by M/s.Oriental Bank of Commerce is concerned, it appears that the bank has not followed the earlier orders passed by this Court on 23.05.2012 in its letter and spirit. As per Condition No.3 in Para 10 of the earlier order of this Court dated 23.05.2012, it was obligatory on the part of the bank to intimate the CBI and also to this Court with regard to the claims of the third parties, i.e., in respect of t....