Case Note & Summary
The case originated from a prosecution by CBI against five accused persons for conspiracy to cheat Bank of India. Accused No.1, a clerk at the Service Branch of Bank of India, K.G. Road, Bengaluru, along with Accused No.5, an attender, entered into a criminal conspiracy with Accused Nos. 2, 3, and 4. Between 1997 and 1999, they fraudulently presented 85 cheques totaling Rs. 35,50,484/- through other banks, drawn on accounts held by Accused No.1 and Accused No.2. As per RBI clearing norms, if the drawer bank did not communicate within 24 hours, the presenting bank was required to credit the amount to the drawee's account. Accused No.1, abusing her official position, willfully disappeared the cheques during the clearing process, ensuring they never reached the drawee banks. Consequently, the amounts were credited to the beneficiaries' accounts without any corresponding debit, causing wrongful loss to Bank of India. Accused No.2 opened multiple accounts in his name and fictitious entities to facilitate the fraud. The cheques were issued in favor of accounts held by Accused Nos. 2, 3, and 4, enabling illegal withdrawals. The trial court convicted Accused No.1 under Sections 120-B, 420, 381, 451, 477-A, 201 IPC and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988, and Accused Nos. 2 to 4 under Sections 120-B and 420 IPC. Aggrieved by the conviction, all accused filed criminal appeals before the Karnataka High Court. During pendency, Accused No.5 died and his appeal abated. The High Court heard the remaining appeals together. The final decision and legal reasoning are not mentioned in the extracted text.
Issue of Consideration
Case Details
2020 LawText (KAR) (06) 20
Criminal Appeal No. 432 of 2010 connected with Criminal Appeal No. 433 of 2010, Criminal Appeal No. 434 of 2010, Criminal Appeal No. 448 of 2010
Sri. S.G. Bhagavan, Sri. Venkatesh .P. Dalawai, Sri. P. Prasanna Kumar
Pankaj A. Parekh, Asha Parekh, Venkatesh, Smt. Yashmin Fathima
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Nature of Litigation
Criminal appeals against conviction for offences of cheating, conspiracy, and corruption related to a bank fraud.
Remedy Sought
Appellants sought setting aside of conviction judgment and acquittal of all charges.
Filing Reason
Aggrieved by the trial court's judgment convicting them for the alleged offences.
Previous Decisions
Trial court convicted all accused in Spl.C.C.No.187/2000 on 30.03.2010. Accused No.1 convicted under Sections 120-B, 420, 381, 451, 477-A, 201 IPC and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988; Accused Nos.2 to 4 convicted under Sections 120-B and 420 IPC.
Judgment Excerpts
Accused No.1 who was working as a Clerk had caused disappearance of the cheques and thereby is said to have prevented the cheques from being cleared.
As per RBI norms, if the drawer bank does not receive any communication within a period of 24 hours, the bank has to credit the amounts into the drawee’s accounts.
Procedural History
The accused were convicted by the XXI Addl. City Civil & Sessions Judge and Special Judge for CBI Cases, Bengaluru, in Spl.C.C.No.187/2000 on 30.03.2010. Aggrieved, they filed criminal appeals under Section 374 Cr.P.C. During pendency, Accused No.5 died and his appeal abated. The High Court heard the remaining appeals together and reserved judgment on 17.06.2020.
Acts & Sections
- Indian Penal Code, 1860: 120-B, 420, 381, 451, 477-A, 201
- Prevention of Corruption Act, 1988: 13(2) read with 13(1)(d)
- Code of Criminal Procedure, 1973: 374
