PETITIONER:
STATE OF U.P. THROUGH C.B.I. S.P.E. LUCKNOW
Vs.
RESPONDENT:
R.K. SRIVASTAVA AND ANOTHER.
DATE OF JUDGMENT11/08/1989
BENCH:
DUTT, M.M. (J)
BENCH:
DUTT, M.M. (J)
PANDIAN, S.R. (J)
THOMMEN, T.K. (J)
CITATION:
1989 AIR 2222 1989 SCR (3) 834
1989 SCC (4) 59 JT 1989 (3) 347
1989 SCALE (2)262
CITATOR INFO :
RF 1992 SC 604 (107)
D 1992 SC1930 (3,5)
ACT:
Criminal Procedure Code, 1973: Section
154---F.l.R.--Allegations contained in FIR taken on face
value and accepted in entirety do not constitute
offence--Whether criminal proceedings could be quashed.
HEADNOTE:
The respondents, two employees of a nationalised Bank
and two account-holders, were charged with offences punisha-
ble under Sections 120B, 420, 468, 471 I.P.C. and 5(2) read
with Section 5(1)(d) of the Prevention of Corruption Act,
1947. The F.I.R. alleged that the two Bank employees entered
into a criminal conspiracy with the two account-holders to
cheat the Bank and, in pursuance thereof an amount of
Rs.54,600 was allowed to be withdrawn by the account-hold-
ers, who had tendered three cheques aggregating to
Rs.54,600, on the basis of the false credit entries in the
books of accounts of the Bank, and connected credit and
debit-vouchers were also prepared. The case against one of
the account-holders was later dropped.
The High Court quashed the proceedings only against
Respondent No. 1 on the ground that the allegations made in
the F.I.R. did not constitute any offence of cheating or
forgery. Against this decision, the State as well as the
Bank filed appeals in this Court.
Quashing the proceedings against all the respondents,
HELD: 1. If the allegations made in the FIR taken at
their face value and accepted in their entirety do not
constitute an offence, the criminal proceedings instituted
on the basis of such FIR should be quashed. [837C]
In the instant case, the Respondent No. 1 and the other
accused had accepted the three cheques in question and sent
the same for clearance after debiting the LOC account. The
cheques were encashed and the money was received by the
Bank. It may be that there was some delay in crediting the
LOC account or that the money against the three
835
cheques were credited in the accounts of the account-hold-
ers, but the allegations made either in the FIR or in the
charge-sheet do not show that they had acted dishonestly, or
with deliberate intention to cause wrongful gain or wrongful
loss to the Bank. When the amount was allowed to be with-
drawn by the account-holders, necessary entries had to be
made in the accounts of the Bank and these entries cannot be
characterised as false. No document has been referred to in
the FIR as the outcome of forgery. [837E-F, 838A]
The High Court was, therefore, right in holding that the
allegations made in the FIR did not constitute any offence
of cheating or forgery and that as the criminal proceedings
had been started on the basis of a FIR which did not contain
any definite accusation and it amounted to an abuse of
process of the Court, they were liable to be quashed. [837G,
838B]
Since the allegations in the FIR are the same against
all the accused persons, the entire proceedings as against
all the accused persons should be quashed. Accordingly, the
entire criminal proceedings are quashed. [838C]
JUDGMENT:
CRIMINAL APPELLATE JURISDICTION: Criminal Appeal Nos.
380 of 1989 and 323 of 1988.
From the Judgment and Order dated 28.1.1988 of the
Allahabad High Court in Crl. Misc. Appln. No. 995 of 1987.
G. Ramaswamy, Additional Solicitor General, Anil Dev
Singh, Miss A. Subhashini and R.P. Kapur for the Appellants.
R.L. Kohli, Manoj Saxena and R.D. Upadhyay for the
Respondents.
The Judgment of the Court was delivered by
DUTT, J. These two appeals by special leave, one pre-
ferred by the State of U .P. and the other by the State Bank
of India, are directed against the judgment of the Allahabad
High Court whereby the High Court has quashed the criminal
proceedings being Crime Case No. 40 of 1983 in the Court of
Special Judge, Anti-Corruption, only as against the respond-
ent R.K. Srivastava. In quashing the proceedings in the
exercise of its jurisdiction under section 482 Cr. P.C., the
High Court took the view that allegations made in the First
Information Report
836
(FIR) did not constitute any offence. In order to appreciate
the view of the High Court, it is necessary to refer to the
FIR which reads as follows:
“An information has been received that Shri
P.C. Saxena and Shri Ram Kumar Srivastava
while posted and functioning as Accountant and
Clerk-cum-Godown Keeper in the State Bank of
India, Agriculture Development Branch, Budaun,
respectively entered into a criminal conspira-
cy with Shri Sarwant Singh and his wife Smt.
Rajwant Kaur, Props. of M/s. National Mill
Store, Budaun, during the month of June, 1982
to cheat the State Bank of India, Budaun, and
in pursuance of the said criminal conspiracy
an.amount of Rs.54,600′ was withdrawn on the
basis of false credit entry made in the books
of accounts of the Bank and connected credit
and debit vouchers were also prepared and
passed by the accused employees of the Bank
and payment were made to the accused persons,
namely, Shri Sarwant Singh and Smt. Rajwant
Kaur who tendered cheque No. 348459 dated 2.5.
1982 for Rs.18,600 cheque No. 348482 for Rs.
19,200, date 2.6. 1982 and cheque No. 502206
dated 2.6.82 for Rs. 16,800 = 54,600.
The above facts constitute offence
punishable u/s 120-B, 420, 468,471 I.P.C. and
5(2) r/w 5(1)(d) of PC Act, 1947.
A regular case is therefore regis-
tered and its investigation is entrusted to
Shri V.P. Arya, Inspector of this establish-
ment.”
According to the FIR, as against three cheques of the aggre-
gate amount of Rs.54,600, presumably of three different
Banks, a credit entry was made in the accounts of M/s.
National Mill Stores Co., Budaun, and M/s. New Manufacturing
Co., Budaun, and their partners, Sardar Sarwant Singh and
his wife Smt. Rajwant Kaur, in the State Bank of India and
the said sum of Rs.54,600 was allowed to be withdrawn by
them by the respondent and the accused P.C. Saxena.
The allegations in the FIR appear to be vague and al-
though it is alleged that the respondent and the accused
P.C. Saxena made false credit entries in the books of ac-
counts of the Bank and connected credit and debit vouchers
were also prepared and passed by them, no
837
particulars of the same have been given. It appears from the
chargesheet that the said Shri Sarwant Singh and his wife
Smt. Rajwant Kaur and their firms, namely, M/s. National
Mill Stores Co., Budaun, and M/s. New ManufaCturing Co.,
Budaun, have current accounts in the State Bank of India,
Budaun. After the said three cheques amounting to Rs.54,600
were tendered, the respondent and the accused P.C. Saxena
sent the said cheques for clearance and allowed the said
Shri Sarwant Singh and his wife Smt. Rajwant Kaur to with-
draw the sum of Rs. 54,600 from their current account.
It is now a well settled principle of law that if the
allegations made in the FIR are taken at their face value
and accepted in their entirety do not constitute an offence,
the criminal proceedings instituted on the basis of such FIR
should be quashed. In the instant case, on the basis of the
said FIR the respondent and the said P.C. Saxena and Shri
Sarwant Singh were charged under sections 120-B, 420, 468
and 471 I.P.C. and section 5(2) read with section 5(1)(d) of
the Prevention of Corruption Act, 1947. According to the
appellant, as no prima facie case was made out against Smt.
Rajwant Kaur, wife of Shri Sarwant Singh, she has been
dropped from the array of the accused persons.
The question is whether the facts disclosed in the FIR
constitute the offences with which the accused have been
charged. It is manifestly clear from the allegations in the
FIR that the respondent or the other accused had no inten-
tion whatsoever to make any wrongful gain or to make any
wrongful loss to the Bank. They had accepted the said three
cheques amounting to Rs.54,600 and sent the same for clear-
ance after debiting the LOC account. The said cheques have
been encashed and the money was received by the State Bank
of India. It may be that there was some delay in crediting
the LOC account or that the money against the three cheques
were credited in the accounts of the said Shri Sarwant Singh
and his wife, but the allegations made either in the FIR or
in the charge-sheet do not show that the respondent and the
said P.C. Saxena had acted dishonestly, that is to say,
acted with a deliberate intention to cause wrongful gain or
wrongful loss. In our opinion, the High Court has rightly
held that the allegations made in the FIR do not constitute
any offence of cheating, nor do they constitute any offence
of forgery. It is true that it has been alleged that the
said sum of Rs.54,600 was withdrawn on the basis of false
credit entries made in the books of accounts of the Bank and
connected credit and debit vouchers were also prepared and
passed by the respondent and the other accused. When the
said sum of Rs.54,600
838
had been allowed to be withdrawn by the said Shri Sarwant
Singh and his wife, necessary entries had to be made in the
books of accounts, but it is not understandable how these
entries can be characterised as false entries. No document
has been referred to in the FIR as the outcome of forgery.
The High Court has rightly held that as the criminal
proceedings have been started against the respondent on the
basis of a FIR which does not contain any definite accusa-
tion, it amounts to an abuse of process of the court and, as
such, is liable to be quashed. We entirely agree with the
view expressed by the High Court.
The High Court has quashed the proceedings only as
against the respondent No. 1, R.K. Srivastava. In our opin-
ion, when the allegations in the FIR are the same against
all the accused persons, the entire proceedings as against
all the accused persons including the said P.C. Saxena and
the said Shri Satwant Singh should be quashed.
Accordingly, while we uphold the judgment of the High
Court, we quash the entire criminal proceedings being Crime
Case No. 40 of 1983 also as against the accused P.C. Saxena
and Shri Sarwant Singh. The appeals are disposed of as
above.
N.P.V. Appeals disposed of.
839
