Case Note & Summary
The Supreme Court dismissed two Special Leave Petitions filed by T.R. Vijayaraman and B. Kanagarajan, who were convicted for cheating and criminal conspiracy in a bank fraud case. The petitioners were proprietors/partners of business entities who, in connivance with bank officials, obtained fraudulent credits in their accounts without any negotiable instruments. The fraud came to light during an inspection in January 2004, and the amounts were deposited the next day. The Trial Court convicted them under Sections 120-B and 420 IPC, sentencing them to 5 years' rigorous imprisonment and a fine of ₹5,000. The High Court upheld the conviction. The Supreme Court found no merit in the petitioners' arguments that the High Court failed to discuss evidence in detail, that no loss was caused to the bank, or that the petitioners had no control over bank officials. The Court noted that the fraudulent entries were made without any instrument, and the modus operandi clearly indicated cheating. The Court also observed that a similar SLP of another accused in the same FIR had been dismissed earlier. Consequently, the SLPs were dismissed, and the petitioners were directed to surrender within two weeks.
Headnote
A) Criminal Law - Cheating and Criminal Conspiracy - Sections 120-B, 420 IPC - Bank Fraud - Fraudulent entries in external clearing account and local drafts account without any negotiable instrument - Held that the modus operandi of making entries without any instrument and giving credit to account holders constitutes cheating and criminal conspiracy, and the conviction was upheld (Paras 4-10). B) Criminal Law - Appeal - High Court's duty when confirming conviction - Not necessary to re-write evidence if agreeing with trial court - Held that the High Court had noticed relevant facts and evidence, and it was sufficient as it was a case of confirmation (Para 9). C) Criminal Law - Cheating - Loss to bank not essential - Held that the fact that the amount was deposited after inspection does not absolve the accused of the offence of cheating, as the fraudulent act was complete (Paras 6-8).
Issue of Consideration
Whether the conviction of the petitioners under Sections 120-B and 420 IPC for cheating the bank by making fraudulent entries without any instrument is sustainable.
Final Decision
The Special Leave Petitions are dismissed. The petitioners are directed to surrender before the concerned Trial Court within 2 weeks from today.
Law Points
- Cheating
- Criminal Conspiracy
- Bank Fraud
- Conviction upheld
- No loss not a defence
- Modus operandi relevant
- High Court need not re-write evidence if agreeing with trial court
