{"id":59908,"date":"2010-03-08T00:00:00","date_gmt":"2010-03-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/kanta-mehta-wo-late-praveen-mehta-vs-central-bureu-of-investigation-on-8-march-2010"},"modified":"2017-05-24T14:58:14","modified_gmt":"2017-05-24T09:28:14","slug":"kanta-mehta-wo-late-praveen-mehta-vs-central-bureu-of-investigation-on-8-march-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/kanta-mehta-wo-late-praveen-mehta-vs-central-bureu-of-investigation-on-8-march-2010","title":{"rendered":"Kanta Mehta W\/O Late Praveen Mehta vs Central Bureu Of Investigation on 8 March, 2010"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Kanta Mehta W\/O Late Praveen Mehta vs Central Bureu Of Investigation on 8 March, 2010<\/div>\n
Author: Jawad Rahim<\/div>\n
   \n\n1\n\nIN THE HIGH COURT OF KARNATAKA AT BANGALORE\nDated this the 08*\" Day of March 2010 0\n\nBEFORE .  .. _\nTHE i-lON'BLE MRJUSTICE JAWAD R.~=xfP'I1M.E.V:  ' \nCRL.RP.NO.1080\/2009 \"  '\n\nBETWEEN:\n\n \n\nKANTA MEHTA, = \nW\/O LATE PRAVEEN MEH*F--., \nAGED ABOUT 75 YEARS, \"\nR\/AT BANDRA (WEST)\nMUMBAI ~ 50 '   \n 'I\u00bb.V..\".eETITIONER\n\n1  [B9'S'ri'3!\u00bbKLzIrIw..f0%' \n '  M.\"!3.Siu:Iil KU'maF,\";5\\.FiVS.]\nAND: . . , . _ .\n\n.IcEI\\:TI.\u00a7A.;I BaUfE2'EAU'~I\u00abV\nI.1BELLAR~;..-IROAD,   --\n'B_ANGALORE.\"-A,'   '\n\nAA\/EST'IGATIoN\n\n  ~ _   ..RESPONDENT\n _ , [By'S.f_I..\"'RavI Shankar for\n\":-Sci Ashok Haranahalli Associates, Advs}\n\nTI\u00a7{IS\"'oRL.RE IS FILED UNDER SECTION 397 OF THE\n\n ' .Ci=I.--I>,ACIv.PRA,I'II\\I'G.TO SET ASIDE THE ORDER DATED 08-10--2009\n PASSED'-av T'H.EE XVII ADDITIONAL C.M.M., BANGALORE IN\nN\n\n\n\no.2I7:o\/jI:=998 (AI\\INExuRE~A).\n\nT%:IIS\"'\"CRL.RP COMING ow' FOR ADMISSION THIS DAY,\n\n THE COURT MADE THE FOLLOWING:\n\nORDER\n<\/pre>\n
Accused No.2 is in revision against the order dated<\/p>\n
8.10.2009 in CC No.2:\u00a3.70\/1998 on the fife of the XVII<\/p>\n
O<\/p>\n
2<\/span><\/p>\n
Additionai Chief Metropolitan Magistrate, Bangaiore,<\/p>\n
rejecting her appiication filed under Section 245 of<\/p>\n
2. Petition is posted for admission after  .<\/p>\n
respondent-CB2 who are duiy represented |Ve’ar4_n\u00bbeti-._, <\/p>\n
Standing counsel Sri.Ravi Shankarfg <\/p>\n
3. Considering the naturejof charge ‘ieveiie’d”aga’inst ” i<\/p>\n
the petitioner and other atten-din”g–.cir.curnsta*nr:esV\u00a7as aiso
\nthe grounds urged agai”nst_,’th’e_Viirh}pu:gin_ed%”order, satisfied,
\nthe matter requires..conisideraftio_n;:f~_. 3 ~ 2 if ‘\n<\/p>\n
4.eeimisieuainigiiea.\n<\/p>\n
 consent,”it_:is..ftaken up for finai disposai.<\/p>\n
 For4″‘ap_oreci-atAi’onV”of the contentions urged against<\/p>\n
‘xi””and’-‘:i..fori..,”ithe._imp’ug”n’ed order, a brief reference to the<\/p>\n
 raiciuiiai a_tri$& iiisjnecessa ry;\n<\/p>\n
 ‘oasis of source information, the officers of<\/p>\n
 registered the FIR in Cr.|\\io.RC.8(A)\/93 SIU (X) and<\/p>\n
“‘-igorifimienced investigation regarding grant of financial<\/p>\n
Hassistance to a business estabiishment under the name<\/p>\n
 M\/s.Surajmai Diamonds Private Limited. The Investigating<\/p>\n
Officer noticed that the company was in export business<\/p>\n
if<\/p>\n
4<\/span><\/p>\n
trial Court on 29.9.2005. Infact, at that time, she and<\/p>\n
Sri.Diiip Mehta, were applicants seeking dischajrge},:”The<\/p>\n
order dated 29.9.2005 was impugned<\/p>\n
Cr|.R.P.|\\\u00a3o.2303\/2005 and this..~~Co.u&rt.’.4’h’\u00a7v”4″‘o’rde’raidatedx’ A’<\/p>\n
20_.8.2008 allowed the petition:”i\u00aband.:lset<\/p>\n
passed by the trial Court..L’-…VHowe’.ter;_the’imatter was”<\/p>\n
remanded to the trial CoLs–r:tV.g’for’–\u00bb.,gAconsi”deirati<in of the
\ngrounds urged  iight of the
\nprosecution alieg__atio:n'.'  '  rcumstances, on
\nremand  .,,hafS'. passed by the trial<\/p>\n
Court. ….   ll'<\/p>\n
  Advocate appearing for the<\/p>\n
petitionerawo_uid..draiN  attention to certain facts which<\/p>\n
'9 V'  _ are Andi;-~.in "dispute'." """\n<\/p>\n
~ VV9.i”V”_’i=4I\/s~.{S’urajmai Diamonds Private Limited was in<\/p>\n
e><y'l5'ort"–p.u'si.ness from 1979 and had infact transacted and<\/p>\n
V  'exip_orted Diamonds worth Rs.1,23 Crore. On 12.2.1988<\/p>\n
'7t:h'e'Ai'=irm applied to UCO Bank, Bangalore, for credit facility<\/p>\n
9 V'  to Rs.200 Iakhs which was as a financial assistance for<\/p>\n
post shipment. While submitting its profile, it included the<\/p>\n
Provisional Balance Sheet of December, 1987,<\/p>\n
is  ,,-'
\n..7L-xw~\/
\nix<\/p>\n
S
\ncountersigned by the Chartered Accountant showing profit
\nof Rs.28.3O lakhs. The loan was granted and finally an<\/p>\n
amount of Rs.134 lakhs was released. The export Ly-!4ell'ded,<\/p>\n
as expected, net profit of Rs.28 lakhs and <\/p>\n
realised by the Bank. In seqt:,eV|g_to it,"'ttl*ei'_':FiVrmv'_'again"\u00bb <\/p>\n
applied for re–grant of further l'\u00bbi:nar_icia:i a'ssista'nce:"it0.'{'t.ije<\/p>\n
extent of Rs.134 lakhs, whv\u00a7'ch4\u00ab..was 'granted  <\/p>\n
In terms of which, the comp:a'ray_'h.ad exported_\ufb01?Diamonds
\nand due to certain eye–nt'ualiAty,%.:.gi'ts"pro\ufb01t"realisation became
\ndifficult. At this junctutte,'Csat\ufb02isC.'lillig%ii:yva'g'hted that while
\ngranting  had insisted upon
\nand  'for the export. ECGC would
\nshow thatmit  for export value realisation<\/p>\n
gug,a_%ra'Vnlteed  State undertaking in the name of Export<\/p>\n
 C.reoit_i(Ru-arantee Corporation, an entity of the Central<\/p>\n
 .<3oyern'm'ent;~,""V<\/p>\n
 The contention of the petitioner is that whatever<\/p>\n
 be the financial assistance, it was given as a post export<\/p>\n
finance and was backed by the guarantee coverage of
\nExport Credit Guarantee Corporation (ECGC) and hence
\nthere was no lack of security for the amount advanced as<\/p>\n
loan nor it shows any net to indicates to defraud the Bank<\/p>\n
9<\/span><\/p>\n
reasons, did not yieid positive returns from the business<\/p>\n
point, yet the Bank had not been in any way pregudiced as<\/p>\n
the guarantee issued by the ECGC was enforced_”a:n’du\u00a79t)’0\/p<\/p>\n
of the ioan advanced was reaiised Eeavingltia <\/p>\n
Rs.38,99,536\/- The question is :w’he’t’i1er’faii.ure:’ofV:s’econd<\/p>\n
business transaction exporting   <\/p>\n
exporting finance was the fra.u”‘duient act rofj”_:theVg4″acc’used,’VV<\/p>\n
Darticularlv the Petitioner he~reii-i.:c.:’:'”‘fuVfiere isno d’ivspute the
\nexport transaction appea._rs  But,
\nthe Bank has,  rgriaterial is avaiiabie
\nto hold pe\u00a7titio_neAAr-“r’es.poru:siiAbleV”for.:su,c’h negative resuit in a
\nbusiness ‘<\/p>\n
16;”-f”_iu’rie_ ci’1a.rg.e\u00bb* against the petitioner and<\/p>\n
‘Vco.-Direct-orisvv are punishabie under Sections 320, 468<\/p>\n
  Necessariiy the ingredients, which<\/p>\n
  offences should has to be estabfished, but<\/p>\n
asfmi se-e.fr’o;m the materiais coiiected during investigation<\/p>\n
‘  arid made the basis for raising the charge, falis short of<\/p>\n
 the Iegai arsenal to indict accused 940.1 Sri.DiEip<\/p>\n
‘ if “”l’i4ehta as aiso the petitioner. Ail it shows is it may indicate<\/p>\n
misconceived business proposition but since the Bank has<\/p>\n
not suffered any loss. The trial Court before whom these<\/p>\n
10<\/span><\/p>\n
aspects were urged deciined to consider it on the ground<\/p>\n
the balance sheet filed to appiy for the ioan reiates<\/p>\n
period during which petitioner was the Director\u00bb.iV.:+hAe5.’m–a’ino”.<\/p>\n
and important ground so far as the_pet_i_tion_e’r”is*\u00ab.1\u00e9io.nVcer’i1Vedic_ <\/p>\n
is that she was not the director when io’an’i’was sa’ncti0Vi=.\u00abed;.t_’<\/p>\n
On facts which are not contrVoverted”vh’v
\nshe has resigned on   No.32
\nsubmitted to the comp’e.tent’\u00ab–_ai;.tif’.o’r’ity-go”since then she
\nceased to be a4D–irecto:ri”‘an–df:is”thegrieiforeiatisolved of the
\niiabiiities  .__vEavi’fjAt'”.’.(‘i_’t’VVf:i”‘(‘)VV1V;1’i 4.10.1988. The
\ntransacti_o_nV_ \u00e96.10.1988 and was
\nundout3ted!y’ resignation from the post
\nof Director-n_’_4  to hold that even if there<\/p>\n
is nojmaterial toproceed against the company in question<\/p>\n
  incharge at that reievant point of time,<\/p>\n
Qucertawinixy ‘~p’e’titioner was not one to be arraigned or<\/p>\n
V . indiVc’tedi\u00ab._’:a.iovn’g with others for the offence indicated above.<\/p>\n
 svatisfied that the petitioner has made out a case<\/p>\n
.’  ind’ic’ating that the materiai is too feebie, insufficient to<\/p>\n
“make out a prima facie case to put her to triai for the<\/p>\n
offence indicated above. She is therefore entitied to<\/p>\n
discharge.\n<\/p>\n
11<\/span><\/p>\n
17. At this stage, it is also brought to my notice that<\/p>\n
Sri.Diiip Mehta the other accused also died in the moVn’Lfh”o.f<\/p>\n
Atari! 2008, infact much before the eariier petitio_n”‘ca!fr;~e._:tVo;_:vA’ <\/p>\n
be disposed of by this Court. Since, he is as Exp’  i <\/p>\n
have held that the petitioner iyoulid\u00e9g\u00e9gfjbe-_<\/p>\n
discharge, further proceedings\u00bb’beforethe tria\u00a5i.\u00bbCfoVt:,’rt\u00ab’migst”<\/p>\n
nauna\ufb02y ternunate as the cuiy.\u00a7th\u00a2r accased SrLDHu)<\/p>\n
Mehta is dead.\n<\/p>\n
18. With these._0bseririatpionjsfithhe petition is disposed<\/p>\n
of.  of thiemcharges ievelied against
\nher andvrin’-the’rfacjtszi”an’d.’\u00abcircumstances of the case<\/p>\n
proceeding terr_ninateA”as””‘the charge against the other<\/p>\n
‘ “‘accu”s.ead isuabagted.  “””\n<\/p>\n
Sd\/er
\nJUDGE<\/p>\n
mv*
\nHb<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court Kanta Mehta W\/O Late Praveen Mehta vs Central Bureu Of Investigation on 8 March, 2010 Author: Jawad Rahim 1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE Dated this the 08*” Day of March 2010 0 BEFORE . .. _ THE i-lON’BLE MRJUSTICE JAWAD R.~=xfP’I1M.E.V: ‘ CRL.RP.NO.1080\/2009 ” ‘ BETWEEN: KANTA MEHTA, […]<\/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":[8,20],"tags":[],"class_list":["post-59908","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nKanta Mehta W\/O Late Praveen Mehta vs Central Bureu Of Investigation on 8 March, 2010 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/kanta-mehta-wo-late-praveen-mehta-vs-central-bureu-of-investigation-on-8-march-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kanta Mehta W\/O Late Praveen Mehta vs Central Bureu Of Investigation on 8 March, 2010 - 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