Bombay High Court Dismisses Petition Challenging Deletion of Section 255 IPC in Bank Fraud Case. Allegations of Counterfeiting Government Stamp on Sale Agreements Attract Sessions Trial Under Section 255 IPC.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Himanshu @ Hemant @ Rajendra Bhatt, was one of the accused in Sessions Case No.468 of 2005 arising from a complaint by the Chief Manager of Bank of Baroda on 3rd September 2004. The complaint alleged that twenty-five borrowers, including the petitioner, submitted forged documents to obtain loans, leading to C.R. No.702 of 2004 at Goregaon Police Station. Investigation revealed that the petitioner availed a loan of Rs.12.50 lakhs by submitting forged documents of M/s.Regal Enterprises and Hermitage Constructions for a non-existent property at Shivling, Kashimira, Mira Road, Thane. The franking impressions, stamp duty receipts, and registration receipts were forged/bogus. The petitioner also opened a bogus account in Union Bank of India in the name of M/s.Ravi Development, where a pay order of Rs.30,00,000/- belonging to another borrower was deposited. The petitioner filed a Criminal Writ Petition under Section 482 CrPC challenging the order of the Sessions Court dated 31st January 2011 in Miscellaneous Application No.233 of 2009, which deleted Section 255 of IPC from the charges. The petitioner sought that the trial be conducted by the Court of Magistrate. The High Court examined Section 255 IPC, which penalizes counterfeiting government stamps. The court held that the allegations of making bogus franking impressions on sale agreements prima facie constitute counterfeiting of government stamps under Section 255 IPC, which is exclusively triable by the Sessions Court. Consequently, the petition was dismissed, and the Sessions Court was directed to proceed with the trial.

Headnote

A) Criminal Procedure - Cognizance of Offence - Section 255 IPC - Counterfeiting Government Stamp - The petitioner challenged the deletion of Section 255 IPC by the Sessions Court, arguing that the offence was not made out. The High Court held that the allegations of making bogus franking impressions on sale agreements prima facie constitute counterfeiting of government stamps under Section 255 IPC, which is triable exclusively by the Sessions Court. The petition was dismissed. (Paras 1-4)

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Issue of Consideration

Whether the Sessions Court was justified in deleting Section 255 of IPC from the charges and whether the trial should be conducted by the Court of Magistrate.

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Final Decision

The High Court dismissed the petition, holding that the allegations prima facie constitute counterfeiting of government stamps under Section 255 IPC, which is exclusively triable by the Sessions Court. The Sessions Court was directed to proceed with the trial.

Law Points

  • Section 255 IPC
  • counterfeiting government stamp
  • cognizance by Sessions Court
  • inherent powers under Section 482 CrPC
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Case Details

2012 LawText (BOM) (08) 84

Criminal Writ Petition No.1117 of 2011

2012-08-17

K.U. Chandiwala

Mr.Subhash Jha i/b. M/s.Law Global, for Petitioner; Mrs.A.T.Jhaveri, APP for State

Himanshu @ Hemant @ Rajendra Bhatt

The State of Maharashtra

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Nature of Litigation

Criminal writ petition under Section 482 CrPC challenging the order of Sessions Court deleting Section 255 IPC and seeking trial by Magistrate.

Remedy Sought

Petitioner sought deletion of Section 255 IPC and transfer of trial to Magistrate's court.

Filing Reason

Petitioner challenged the Sessions Court order dated 31st January 2011 deleting Section 255 IPC from charges.

Previous Decisions

Sessions Court in Miscellaneous Application No.233 of 2009 deleted Section 255 IPC from charges in Sessions Case No.468 of 2005.

Issues

Whether the allegations of making bogus franking impressions on sale agreements constitute counterfeiting of government stamps under Section 255 IPC. Whether the trial should be conducted by the Court of Magistrate instead of the Sessions Court.

Submissions/Arguments

Petitioner's counsel argued that Section 255 IPC is not applicable to the petitioner. State opposed the petition, supporting the Sessions Court's order.

Ratio Decidendi

The making of bogus franking impressions on sale agreements amounts to counterfeiting of government stamps under Section 255 IPC, which is an offence exclusively triable by the Sessions Court.

Judgment Excerpts

Section 255 of Indian Penal Code reads as under:- '255. Counterfeiting Government stamp.-- Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any stamp issued by Government for the purpose of revenue, shall be punished with [imprisonment for life], or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.'

Procedural History

The petitioner was an accused in Sessions Case No.468 of 2005. The Sessions Court passed an order on 31st January 2011 in Miscellaneous Application No.233 of 2009 deleting Section 255 IPC from the charges. The petitioner filed Criminal Writ Petition No.1117 of 2011 under Section 482 CrPC challenging that order.

Acts & Sections

  • Indian Penal Code, 1860 (IPC): 255
  • Code of Criminal Procedure, 1973 (CrPC): 482
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High Court Bombay High Court Dismisses Petition Challenging Deletion of Section 255 IPC in Bank Fraud Case. Allegations of Counterfeiting Government Stamp on Sale Agreements Attract Sessions Trial Under Section 255 IPC.
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