{"id":146948,"date":"2009-12-19T00:00:00","date_gmt":"2009-12-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/r-narasimhan-vs-the-state-c-b-i-on-19-december-2009"},"modified":"2017-03-16T02:49:08","modified_gmt":"2017-03-15T21:19:08","slug":"r-narasimhan-vs-the-state-c-b-i-on-19-december-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/r-narasimhan-vs-the-state-c-b-i-on-19-december-2009","title":{"rendered":"R. Narasimhan vs The State (C.B.I. on 19 December, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Bombay High Court<\/div>\n<div class=\"doc_title\">R. Narasimhan vs The State (C.B.I. on 19 December, 2009<\/div>\n<div class=\"doc_bench\">Bench: R. S. Dalvi<\/div>\n<pre>                                     1\n\nPGK\n\n           IN THE HIGH COURT OF JUDICATURE AT BOMBAY\n\n\n\n\n                                                                            \n                        APPELLATE SIDE\n\n\n\n\n                                                    \n          Criminal Revision Application No.221 of 2003\n\nR. Narasimhan            ...                          ... Applicant\n                                                  (Orig.Accused No.4)\n\n\n\n\n                                                   \n    v\/s.\nThe State (C.B.I., A.C.B., Mumbai)                    ... Respondent\n                                                  (Orig.Complainant)\n\n\n\n\n                                        \nMr.Yusuf Iqbal with Mr.Neville             Majra        i\/by        M\/s.Yusuf             &amp;\nAssociates for Applicant.    \nMr.Mangar Goswami with Mr.A.S. Gadkari for Res.No.1-CBI.\n                            \nMrs.A.A. Mane, APP for State.\n    -----\n\n                                CORAM : SMT.ROSHAN DALVI, J.\n            \n\n\nDate for reserving the judgment :           15th December 2009\n         \n\n\n\nDate for pronouncing the judgment :              19th    December 2009\n\nJUDGMENT :\n<\/pre>\n<p>    1.   This   Application    has   challenged         the      order        of      the<br \/>\n         learned    Special     Judge,     CBI\/Additional                   Sessions<\/p>\n<p>         Judge,    Greater   Bombay,     dated    13.3.2003,              rejecting<br \/>\n         the Discharge Application of the Applicant herein,<br \/>\n         who was accused No.4 in Special Case No.61 of 1999<br \/>\n         before the learned Judge and also of accused No.3<br \/>\n         therein.    Accused No.3 has not challenged the said<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           2<\/span><\/p>\n<p>         order.\n<\/p>\n<p>    2.   The Applicant\/accused No.4 herein was charged with<br \/>\n         having committed offences under Section 120B of the<\/p>\n<p>         Indian Penal Code read with Sections 5(2) and 5(1)\n<\/p>\n<p>         (b) of the Prevention of Corruption Act, 1947 (PC<\/p>\n<p>         Act) corresponding to Sections 13(2) and 13(1)(d) of<br \/>\n         the PC Act, 1988.               The Applicant served as Vice<br \/>\n         President at New York Branch, Bank of Baroda. The<\/p>\n<p>         Applicant       was     appointed          to     the       said         post         in<br \/>\n         September       1987,    which<br \/>\n                                 ig           he    continued         to     hold        until<br \/>\n         December 1990.           The acts committed by the various<br \/>\n         officers of the Bank as also the third parties with<\/p>\n<p>         whom they had certain transactions of sanctioning an<br \/>\n         overdraft facility, credit facility and Letters of<\/p>\n<p>         Credit   (LCs)         were    stated       to    be     for        the       period<br \/>\n         between 1984 and 1988.                    Hence, in respect of the<\/p>\n<p>         Applicant,       the    period       between      September             1987        and<br \/>\n         December    1988       would     be       material.           The       Applicant<\/p>\n<p>         returned     to    India       in     1991       and     retired           on       27th<br \/>\n         February 1999.          The case was registered by the CBI<br \/>\n         in the year 1992.\n<\/p>\n<p>    3.   The charge-sheet contains documents of the relevant<br \/>\n         period     as     also        several       other       documents               being<br \/>\n         letters, notes etc. of the accused\/Applicant of the<br \/>\n         period between 1989-90, which has been argued upon<\/p>\n<p><span class=\"hidden_text\">                                                           ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           3<\/span><\/p>\n<p>         on behalf of the accused\/Accused.\n<\/p>\n<p>    4.   The Applicant was arraigned along with 3 other Bank<br \/>\n         Officers.      They        had       previously            retired.               The<\/p>\n<p>         prosecution applied for sanction to prosecute the<br \/>\n         Applicant.         The     competent        Authority             being           the<\/p>\n<p>         Chairman and Managing Director of the Bank, refused<br \/>\n         to sanction prosecution against the Applicant.                                    The<br \/>\n         charge-sheet came to be served upon the Applicant<\/p>\n<p>         after   his        retirement        on   the     premise            that         the<br \/>\n         sanction      to     prosecute<br \/>\n                                ig             him    would          not        then         be<br \/>\n         required.\n<\/p>\n<p>    5.   Disciplinary proceedings were instituted by way of a<br \/>\n         departmental        inquiry      against     the      Applicant.                  The<\/p>\n<p>         Applicant was served with the articles of charge and<br \/>\n         the   statement       of   allegations          in    that        inquiry           on<\/p>\n<p>         12.2.1999.         The Central Vigilance Commission (CVC)<br \/>\n         is stated to have conducted that inquiry.                                The CVC<\/p>\n<p>         has exonerated the Applicant of the charges levelled<br \/>\n         against him under its Report dated 22.10.1999.                                    The<br \/>\n         Applicant claims that the inquiry was conducted on<br \/>\n         identical charges upon the same documents.\n<\/p>\n<p>    6.   The charge against the Applicant showed that accused<br \/>\n         No.1-K.C. Chokshi, who was the then Executive Vice<br \/>\n         President at the New York Branch                     of Bank of Baroda,<\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          4<\/span><\/p>\n<p>         accused No.2 one Premjit Singh, who was then the<br \/>\n         Chairman and Managing Director, Central Office, Bank<\/p>\n<p>         of Baroda in Mumbai and accused No.3-Dr. A.C. Shah,<br \/>\n         who was then the Executor Director of the Central<\/p>\n<p>         Office of Bank of Baroda in Mumbai, were charged<br \/>\n         along with the Applicant.                  The prosecution case is<\/p>\n<p>         that the Applicant granted and recommended various<br \/>\n         credit facilities by increasing credit limits from 1<br \/>\n         Million    U.S.       Dollars       to    5    Million        U.S.         Dollars<\/p>\n<p>         (USD),    granted      the    overdraft         facility          as     well        as<br \/>\n         allowed     opening    igof     LCs       to    one     M\/s.Kulmer               INC.<br \/>\n         (Kulmer), a Private Firm based in New York.                                   It is<br \/>\n         also     the    prosecution         case       that     based          upon        the<\/p>\n<p>         recommendations         of    the     Applicant         put        up      through<br \/>\n         accused No.3 to accused No.2, these facilities were<\/p>\n<p>         granted and enhanced.                 This was despite the said<br \/>\n         Firm    being    classified          as    having       doubtful             credit<\/p>\n<p>         limit     by    the    Regulatory          Authority,           the        Federal<br \/>\n         Deposit Insurance Corporation (FDIC) of the U.S.A.\n<\/p>\n<p>    7.   The     prosecution          case         is    based          upon          source<br \/>\n         information.          It is made out despite the fact that<br \/>\n         the account of Kulmer was not treated as fraudulent<\/p>\n<p>         by the Bank.\n<\/p>\n<p>    8.   The prosecution has, inter alia, relied upon several<br \/>\n         letters of the Applicant with the Central Office in<\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              5<\/span><\/p>\n<p>          Mumbai as well as two Telexes dated 10.9.1987 and<br \/>\n          12.2.1988 and the Fax dated 2.12.1987, which have<\/p>\n<p>          been recited and considered in the impugned order.\n<\/p>\n<p>    9.    To     understand       a    prima          facie        case         against            the<br \/>\n          Applicant,       the        documents            relied           upon          by       the<\/p>\n<p>          prosecution and which are a part of the CVC inquiry<br \/>\n          must be seen.          A telex message sent by the Applicant<br \/>\n          as the Senior Vice President, New York to the DGM<\/p>\n<p>          (International) in the Main Office at Bombay, does<br \/>\n          show    that    the     LC<br \/>\n                                  ig    of       USD       4    Lakhs        had       not       been<br \/>\n          considered favourably.                 The Applicant has requested<br \/>\n          to consider it favourably for the reasons that the<\/p>\n<p>          Company had shown improvement in its performance, it<br \/>\n          had    made    profits       and       reduced          the       carry          forward<\/p>\n<p>          losses, it had          substantial orders in hand and its<br \/>\n          liquidity problems were due to direct payment.                                           The<\/p>\n<p>          Applicant proposed that the LC would help it to meet<br \/>\n          the orders on hand, as was the case of the Company,<\/p>\n<p>          and hence recommended reconsideration.\n<\/p>\n<p>    10.   After    the    appointment            of    the      Applicant            as      Senior<br \/>\n          Vice    President       of    Bank          of   Baroda,           New       York,         in<\/p>\n<p>          September 1987, the telex issued by the New York<br \/>\n          Branch    upon    the       DGM    (International)                   at      the       Head<br \/>\n          Office in Mumbai dated 12.12.1988, does show that<br \/>\n          sanction       limit     enjoyed            by       Kulmer        was        USD        2.4<\/p>\n<p><span class=\"hidden_text\">                                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      6<\/span><\/p>\n<p>        Millions   since     16th   December     1987.          Ad-hoc          limits<br \/>\n        have    been   allowed      by    the    Chairman        and        Managing<\/p>\n<p>        Director. Their overdraft has been overdrawn due to<br \/>\n        payment of bills under the LCs.              They had approached<\/p>\n<p>        the Bank to sanction the credit limit of USD 3.5<br \/>\n        Million immediately.         The Bank was required to open<\/p>\n<p>        further LCs.       The Fax further states that they could<br \/>\n        not achieve their sales target because of certain<br \/>\n        embargo    placed     by    the     US   Government            and        quota<\/p>\n<p>        restrictions in India.            They were hopeful to achieve<br \/>\n        the sales target during that current year.\n<\/p>\n<p>                             ig                                                 Hence,<br \/>\n        the Fax shows that, the ad-hoc limits of USD 3.5<br \/>\n        Million may be sanctioned for 3 months.\n<\/p>\n<p>    11. The    aforesaid    Telex     and    the    Fax      thus         show        the<\/p>\n<p>        advocacy on the part of the Applicant on behalf of<br \/>\n        Kulmer.\n<\/p>\n<p>    12. However, there are several other letters which show<\/p>\n<p>        a restraint on further recommendations, calling upon<br \/>\n        Kulmer to strengthen its account and make payment<br \/>\n        and thereafter refusing to allow or recommend any<br \/>\n        further facilities.\n<\/p>\n<p>    13. The charge-sheet contains a last of correspondence<br \/>\n        relied upon by the CBI.             The Advocate on behalf of<br \/>\n        the Applicant has produced copies of the documents<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              7<\/span><\/p>\n<p>          considered by the CVC in the departmental inquiry<br \/>\n          which are much the same.\n<\/p>\n<p>    14.   The   letter    dated       20th       June    1988   addressed             by      the<\/p>\n<p>          Applicant to Kulmer shows that its operations are<br \/>\n          below   targets       despite          the    increase       in     the       credit<\/p>\n<p>          limit from USD 2.5 Million to USD 3.5 Million.                                      The<br \/>\n          cheque was returned.                   The matter was referred to<br \/>\n          higher Authorities.                It calls upon Kulmer to sort<\/p>\n<p>          out   the   matter     by     proper          planning      before          further<br \/>\n          increase in credit limit to USD 5 Million could be<\/p>\n<p>          considered.      In    the         letter       dated      24.6.1988,               the<br \/>\n          Applicant has informed the DGM (International) at<\/p>\n<p>          Mumbai that Kulmer has requested the increase to USD<br \/>\n          5    Million    without      proper           justification           either          to<\/p>\n<p>          continue the ad-hoc credit or to increase it.                                   It is<br \/>\n          not able to reduce the credit.                    The said letter sets<\/p>\n<p>          out the limit granted and calls upon Bombay Office<br \/>\n          to    confirm    the    action          of     continuing           the       ad-hoc<\/p>\n<p>          excess credit limit.               That letter does not recommend<br \/>\n          further increase in the credit limit asked for by<br \/>\n          Kulmer.\n<\/p>\n<p>    15. On 26.7.1988, a note has been sent by the Deputy<br \/>\n          General Manager (International) to the then Chairman<br \/>\n          and the Managing Director, who is accused Premjit<br \/>\n          Singh in the aforesaid case based upon the letter of<\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             8<\/span><\/p>\n<p>          the Applicant advising that he was unable to give<br \/>\n          his recommendations and had proposed to decline the<\/p>\n<p>          request of Kulmer to open ad-hoc LC.\n<\/p>\n<p>    16.   Thereafter       the       Applicant      wrote         to      Kulmer           on      4th<br \/>\n          October 1988 putting on record that ad-hoc LCs were<\/p>\n<p>          opened purely to accommodate its requirements and<br \/>\n          calling      upon     it    to    reduce       its      limit         to     USD       2.4<br \/>\n          Million      with    a     sub-limit      for    overdraft                 of    USD       1<\/p>\n<p>          Million.      In a letter dated 14th October 1988 of the<br \/>\n          Applicant to the DGM (International) Mumbai, he put<\/p>\n<p>          on record the strained relationship between the Bank<br \/>\n          and the Company as also the Bank s Attorneys and<\/p>\n<p>          called for suggestions and comments.                              Thereafter on<br \/>\n          13th    December       1988,      the    Applicant              wrote           to     the<\/p>\n<p>          Company that the Bank would not be able to exceed<br \/>\n          the     limits   in       view    of    the    classification                   by     the<\/p>\n<p>          regulatory Authority of its account as doubtful.                                         He<br \/>\n          called upon Kulmer to quicken collection, meet the<\/p>\n<p>          commitments         and    take    necessary           measures            to        avoid<br \/>\n          requiring the Bank to initiate steps against it.\n<\/p>\n<p>    17. He       has    thereafter          not    recommended                any         further<\/p>\n<p>          additional credit limits for any other facilities to<br \/>\n          be granted to Kulmer.\n<\/p>\n<p>    18.   It     is,   therefore,       seen      that    though           ad-hoc          limits<\/p>\n<p><span class=\"hidden_text\">                                                               ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           9<\/span><\/p>\n<p>        were increased initially upon recommendations of the<br \/>\n        Applicant for Kulmer and Kulmer was allowed to open<\/p>\n<p>        ad-hoc LC, when it was seen that Kulmer was not<br \/>\n        achieving its target and reducing its limits and yet<\/p>\n<p>        calling     for    further        increase        in       the      limit          and<br \/>\n        further   ad-hoc         LCs,     the       Applicant       had        exercised<\/p>\n<p>        restraint and had recommended that such limits be<br \/>\n        declined.         Consequent          upon    such    letters,           the       DGM<br \/>\n        (International) had recommended confirmation of the<\/p>\n<p>        Applicant s       actions         and        declined       the        Company s<br \/>\n        request for opening the ad-hoc LCs to the Chairman<\/p>\n<p>        and   Managing      Director          and     other     accused          in      this<br \/>\n        case.\n<\/p>\n<p>    19. The   aforesaid      are    the        relevant       documents            of      the<\/p>\n<p>        period    1984      to     1988       showing        the     acts         of       the<br \/>\n        Applicant, for which he is charged.\n<\/p>\n<p>    20. The Applicant has continued to write further letters<\/p>\n<p>        to Kulmer, calling for explanation and reprimanding<br \/>\n        it in the year 1989 onwards, which is not the period<br \/>\n        considered    in     the    charge.            However,         the      CVC       has<br \/>\n        considered the documents of that period also.                                      The<\/p>\n<p>        Applicant unaware of the charge that would be framed<br \/>\n        against him later, is shown to have written certain<br \/>\n        letters to which my attention has been drawn by the<br \/>\n        learned Counsel on behalf of the Applicant.\n<\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                         10<\/span><\/p>\n<p>    21.   The    letter    dated    27.1.1989     calls     upon        Kulmer          to<\/p>\n<p>          explain certain anomalies and clarify its position.<br \/>\n          The letter dated 8.2.1989 shows that there was a<\/p>\n<p>          shortfall in its deposits into the account with the<br \/>\n          Bank and the collection efforts have considerably<\/p>\n<p>          slowed down.       It calls for certain Bank statements.<br \/>\n          The letter dated 28.2.1989 of the Applicant to the<br \/>\n          DGM (International) at Mumbai, sets out the position<\/p>\n<p>          of Kulmer.      It calls for advice upon the decision to<br \/>\n          release additional overdraft facility.\n<\/p>\n<p>                              ig                                       A note to<br \/>\n          the then Chairman and Managing Director through the<br \/>\n          Executive Director (both of whom are accused) sent<\/p>\n<p>          by    the   Assistant     General   Manager     at      Mumbai          dated<br \/>\n          3.3.1989, shows an endorsement that the Applicant,<\/p>\n<p>          as the Senior Vice President, has not recommended<br \/>\n          the facilities and overdraft mentioned therein.                             The<\/p>\n<p>          note specifically sets out thus:-\n<\/p>\n<blockquote><p>                      Senior Vice President, New York is unable to<br \/>\n                  offer recommendations as the Company has not<br \/>\n                  been    able     to   explain   the   reasons           for       poor<br \/>\n                  recovery. &amp;..\n<\/p><\/blockquote>\n<p>    22. Despite this, Premjit Singh, the co-accused of the<br \/>\n          Applicant,       sanctioned         further       facilities                  on<br \/>\n          15.5.1989 on the ground that there were reasonable<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                       11<\/span><\/p>\n<p>          requests considered on merits by him.                      Under those<br \/>\n          circumstances, the Applicant contends that he was<\/p>\n<p>          obliged    and    bound     to   grant    further             facilities<br \/>\n          specifically not recommended by him.\n<\/p>\n<p>    23.   On   16.8.1989,    the    Applicant   wrote       to      the       General<\/p>\n<p>          Manager, International, Mumbai, that Kulmer had not<br \/>\n          heeded his request and he was not in a position to<br \/>\n          monitor the account in an effective manner.                              In a<\/p>\n<p>          similar letter dated 18.8.1989, he has informed the<br \/>\n          General Manager, International, that Kulmer had not<\/p>\n<p>          fulfilled its commitments and the balance overdraft<br \/>\n          account was well above the stipulated limit. In a<\/p>\n<p>          further letter dated 11.9.1989, he has informed the<br \/>\n          General    Manager,      International     (referring               to      the<\/p>\n<p>          Telex of Mumbai, requesting for his recommendations<br \/>\n          on the request of Kulmer for additional ad-hoc loan<\/p>\n<p>          of USD 3 Lakhs) that the account was classified as<br \/>\n          doubtful    by    the    regulatory      Authorities,               despite<\/p>\n<p>          which the Chairman (the co-accused\/ Premjit Singh)<br \/>\n          by his letter dated 5th May 1989, had opted to give<br \/>\n          additional finance to the Company.                   He, therefore,<br \/>\n          requested suitable decision on the request of the<\/p>\n<p>          Company for additional loan in the overall interest<br \/>\n          of the Bank. In the year 1990, similar letters have<br \/>\n          been addressed by the Applicant to Kulmer, calling<br \/>\n          upon it to improve its financial position with the<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             12<\/span><\/p>\n<p>        Bank and regretting that he was not in a position to<br \/>\n        open further LCs, requested by the Company in the<\/p>\n<p>        letter dated 12th April 1990.\n<\/p>\n<p>    24. The aforesaid documents would show that though the<br \/>\n        Applicant       did     recommend          additional              credit           limits<\/p>\n<p>        initially, he stopped after he saw that the account<br \/>\n        of    Kulmer    did     not    improve          as      called           upon.            The<br \/>\n        contention       on    his     behalf         is       that     though,           as      the<\/p>\n<p>        Senior   Vice        President,          he     had      to     take        a     certain<br \/>\n        amount     of    risk   ig  and      allow         a     certain           amount           of<br \/>\n        discretion of recommending credit limit, he has not<br \/>\n        exceeded       his    authority.                When       he      realized             that<\/p>\n<p>        Kulmer did not improve its position, he called for<br \/>\n        the opinion from the Bombay Office.                                      He did not<\/p>\n<p>        recommend further limits.                       He recommended that it<br \/>\n        not be increased.               Despite his recommendations he<\/p>\n<p>        was    overruled       by     the        then      Chairman           and       Managing<br \/>\n        Director,       the     co-accused\/             Premjit          Singh.               These<\/p>\n<p>        aspects have been considered by the CVC.                                           He has<br \/>\n        been fully exonerated.\n<\/p>\n<p>    25. The loan of Kulmer has been written off in 1991.\n<\/p>\n<p>        The    case     has     been      filed         in      1992.        Investigation<br \/>\n        continued       until    1997.            Sanction          to      prosecute             was<br \/>\n        applied for and refused on 15.1.1998. A departmental<br \/>\n        inquiry was instituted on 12.2.1999.                                 The Applicant<\/p>\n<p><span class=\"hidden_text\">                                                                ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            13<\/span><\/p>\n<p>          was     exonerated           after     extensive             evidence               was<br \/>\n          considered on 22.10.1999.               The Bank passed its order<\/p>\n<p>          of exoneration of the charges against the Applicant<br \/>\n          on     31.5.2000       based    upon     the       CVC s         order          dated<\/p>\n<p>          22.10.1999.         Thereafter the charge-sheet came to be<br \/>\n          filed, levying the aforesaid charges, inter alia,<\/p>\n<p>          upon the Applicant.\n<\/p>\n<p>    26. The prosecution of a public officer for corruption<\/p>\n<p>          charges is required to be made under the PC Act,<br \/>\n          1988    by    the    CBI.\n<\/p>\n<p>                                  ig      CBI    is     a    watch-dog            for       that<br \/>\n          purpose; it cannot be a bloodhound to persecute a<br \/>\n          public       officer    in     the    place       of    prosecuting               him.\n<\/p>\n<p>          Therefore, the salutary provision for sanction to be<br \/>\n          obtained by the competent Authority is required.\n<\/p>\n<p>    27.   The competent Authority has refused sanction in a<\/p>\n<p>          detailed letter spanning 10 pages, setting out the<br \/>\n          reasons for refusal.             It sets out the establishment<\/p>\n<p>          of the New York Branch of the Bank in February 1978,<br \/>\n          the licence for lending activities obtained by it in<br \/>\n          1982.     The       account     with     Kulmer           was        opened           in<br \/>\n          September 1983 well before the Applicant was posted<\/p>\n<p>          at the Branch.          The default for recoveries by Kulmer<br \/>\n          despite increased sales has been set out.                                It shows<br \/>\n          that Kulmer did not reduce outstandings despite its<br \/>\n          increased sales and profitability in the period 1987<\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            14<\/span><\/p>\n<p>          to   1989.         It    also     sets       out     that        investigation<br \/>\n          commenced in 1992 for the period 1983 to 1989-90,<\/p>\n<p>          which     were        completed       only     in       1997,          which          de-<br \/>\n          motivated       the     Applicant       and    hampered             his       career,<\/p>\n<p>           though his contribution and performance has always<br \/>\n          been to the utmost satisfaction of his superiors.\n<\/p>\n<p>          It also sets out that from 1983 till 1987 Kulmer s<br \/>\n          account      was        functioning          normally.              Hence           when<br \/>\n          occasions       for     higher    credit       facilities               arose         the<\/p>\n<p>          Bank    Authorities        deemed       it    fit      to     accede          to      its<br \/>\n          request.         At     that<br \/>\n                                   ig     time,    the       true       status          of      the<br \/>\n          account was reported by the Branch Authorities to<br \/>\n          the Central Office and hence the case for criminal<\/p>\n<p>          conspiracy to cheat the Bank of its commitments was<br \/>\n          not at all made out any where or at any stage.\n<\/p>\n<p>    28.   The letter sets out the various facilities granted<\/p>\n<p>          to     Kulmer      beginning          9.3.1983         well          before           the<br \/>\n          Applicant was posted              in May 1987 and worked under<\/p>\n<p>          K.C. Choksi, the co-accused, who was the Executive<br \/>\n          Vice President.           He became Senior Vice President in<br \/>\n          September 1987 when K.C. Choksi was repatriated to<br \/>\n          India.     The credit limit was then USD 1.4 Million.\n<\/p>\n<p>          It was raised to USD 2.08 Million due to overdrafts<br \/>\n          in its bills portfolio.                 It also sets out that the<br \/>\n          recommendation made by the Applicant initially was<br \/>\n          for regularisation of the ad-hoc credit given.                                        The<\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                        15<\/span><\/p>\n<p>        request   for     reconsideration           was       submitted            by      the<br \/>\n        Applicant       since       Kulmer         showed          the         increased<\/p>\n<p>        profitability and substantial orders. It sets out<br \/>\n        that the Applicant, as the Senior Vice President,<\/p>\n<p>        reported the entire picture to the Head Office.                                    The<br \/>\n        ad-hoc proposal was not recommended by the New York<\/p>\n<p>        Office.     The reconsideration was called for by the<br \/>\n        Applicant    because         the         outstanding           had         already<br \/>\n        reached saturation level and without further LC and<\/p>\n<p>        further   ad-hoc       facilities,         the       operations            in      the<br \/>\n        account     would       have<br \/>\n                               ig           come        to      a        stand-still.\n<\/p>\n<p>        Consequently,         the    additional           ad-hoc           limit           was<br \/>\n        increased for commercial considerations for keeping<\/p>\n<p>        the operations in the account alive at that time.<br \/>\n        The   proposal    for       still    further         limit        of     USD       3.5<\/p>\n<p>        Million   was     submitted         to    the    Central           Office          for<br \/>\n        consideration.         This was in turn submitted by the<\/p>\n<p>        Deputy    General       Manager          (International)                  to       the<br \/>\n        Executive Director.            Hence it is concluded in the<\/p>\n<p>        letter that no fault, deficiency or omission of duty<br \/>\n        can be imputed upon the Applicant.\n<\/p>\n<p>    29. Further   the     letter      has    considered             the      Fax       dated<\/p>\n<p>        2.12.1987    of       the     Applicant,             which         recommended<br \/>\n        increase because the sales position of the Company<br \/>\n        had improved.          The additional ad-hoc facility was<br \/>\n        considered      and     sanctioned          by       the      Chairman             and<\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                         16<\/span><\/p>\n<p>        Managing Director (the co-accused).                               It shows that<br \/>\n        the limit was recommended to be increased to USD 3.5<\/p>\n<p>        Million,         which          effectually                     amounted                  to<br \/>\n        regularization of the limits enjoyed by the Company.\n<\/p>\n<p>        This was discussed and approved by the Chairman and<br \/>\n        Managing Director and confirmation for excess grant<\/p>\n<p>        of   credit     was    conveyed       to    New         York        Branch          under<br \/>\n        letter dated 24.2.1988.                Similarly, the opening of<br \/>\n        the LC of USD 35,000 has been justified.                                 It is also<\/p>\n<p>        set out that after the account was termed doubtful<br \/>\n        by the FDIC, no further limit was recommended.\n<\/p>\n<p>                                ig                                                              The<br \/>\n        letter, therefore, refuses to sanction prosecution<br \/>\n        to the Director, Central Vigilance Commission.\n<\/p>\n<p>    30. No   such     sanction        has    been    obtained                  by     the       CBI<\/p>\n<p>        either.\n<\/p>\n<p>    31. From a reading of these documents, it can be seen<br \/>\n        that there is no prima facie case of conspiracy or<\/p>\n<p>        any act of corruption shown against the Applicant.<br \/>\n        Mere recommendations do not tantamount to conspiracy<br \/>\n        or   corruption.         They        have        to       be       independently<br \/>\n        considered       and     appreciated.             Where            a        particular<\/p>\n<p>        employee has stopped short has to be seen.                                              The<br \/>\n        officer,       who     acts    upon        the        directions               of       his<br \/>\n        superiors, despite his own opinion being made known,<br \/>\n        cannot    be    prosecuted           for    an    act          done         upon        the<\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          17<\/span><\/p>\n<p>          directions of his superiors.                 Consequently, from the<br \/>\n          documents       relied    upon       by     the      prosecution,                  more<\/p>\n<p>          specially       the     aforesaid          Telexes,          Fax         and        the<br \/>\n          letters,    the    charge      is    not     made       out       against           the<\/p>\n<p>          Applicant.\n<\/p>\n<p>    32.   It has been argued on behalf of the Applicant that<br \/>\n          in the case of P.S. Rajya vs. State of Bihar, (1996)<br \/>\n          9 Supreme Court Cases 1, it has been held by the<\/p>\n<p>          Hon ble    Supreme       Court      that    once        the       departmental<br \/>\n          inquiry has exonerated the Applicant, the criminal<\/p>\n<p>          prosecution       would    not      lie    since        the       standard            of<br \/>\n          proof is much higher than the criminal prosecution.\n<\/p>\n<p>          Nevertheless, I have gone through the material to<br \/>\n          satisfy myself upon whether the charge can be prima<\/p>\n<p>          facie made out against the Applicant, based upon the<br \/>\n          factual evidence relied upon by the CBI.                                     I have<\/p>\n<p>          found that it cannot be, since the two documents<br \/>\n          cannot be read in isolation when the charge-sheet<\/p>\n<p>          contains    a    bulk     of   documentary             evidence.                I     am<br \/>\n          satisfied       that    the    Applicant          is     required             to      be<br \/>\n          discharged upon the material produced by the CBI on<br \/>\n          merits and upon the fact that sanction to prosecute<\/p>\n<p>          was   earlier      refused       and      the     Applicant             has       been<br \/>\n          charge-sheeted only after his retirement to evade<br \/>\n          the statutory provision regarding the obtaining of<br \/>\n          sanction to prosecute the Applicant.                               The learned<\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           18<\/span><\/p>\n<p>          Special Judge\/Sessions Judge has not considered any<br \/>\n          documentary        evidence     to    see    any      prima         facie         case<\/p>\n<p>          against the Applicant herein.                  In a charge such as<br \/>\n          this,      the   main    case    would       be      made         out       by      the<\/p>\n<p>          documentary           evidence          which               consists                  in<br \/>\n          correspondence over a large period of time forming a<\/p>\n<p>          chain of correspondence which has to be looked into<br \/>\n          as a whole.\n<\/p>\n<p>    33. I am gratified to have received exemplary assistance<br \/>\n          from the Counsel on behalf of the Applicant who has<\/p>\n<p>          in   the    most    lucid     manner    set       out       before          me      the<br \/>\n          entire       documentary         evidence             to         unfold             the<\/p>\n<p>          Applicant s act as the Senior Vice President of the<br \/>\n          Bank at its New York Branch over a period of years<\/p>\n<p>          from the compilations of the CBI as well as the CVC.\n<\/p>\n<p>    34.   Consequently,        the      order    of     the        learned            Special<br \/>\n          Judge\/Sessions Judge, Greater Bombay, is seen to be<\/p>\n<p>          suffering from a material irregularity.                                Hence the<br \/>\n          order of the learned Judge dated 13.3.2003 is set<br \/>\n          aside.      The Criminal Revision Application is allowed<br \/>\n          accordingly.            The    Applicant       is        discharged               from<\/p>\n<p>          Special Case No.61 of 1999.\n<\/p>\n<p>                                                      (SMT.ROSHAN DALVI, J.)<\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:27:07 :::<\/span>\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court R. Narasimhan vs The State (C.B.I. on 19 December, 2009 Bench: R. S. Dalvi 1 PGK IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE SIDE Criminal Revision Application No.221 of 2003 R. Narasimhan &#8230; &#8230; Applicant (Orig.Accused No.4) v\/s. The State (C.B.I., A.C.B., Mumbai) &#8230; Respondent (Orig.Complainant) Mr.Yusuf Iqbal with Mr.Neville [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11,8],"tags":[],"class_list":["post-146948","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>R. 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