Read about the recent landmark Supreme Court judgment regarding the quashing of criminal proceedings in T.R. No 28 of 2002. This case dealt with the closure of the loan account and the justification of continuing criminal proceedings against the accused. Stay informed on legal developments! #LegalJustice #SupremeCourt #CriminalProceedings
Facts
- Accused No. 4 and 5, present appellants, participated in a criminal conspiracy along with other accused persons as per the FIR.
- The FIR alleged offenses punishable under various sections of the IPC and the Prevention of Corruption Act.
- Accused No. 4 and 5 were partners in M/s Clarion Travels, Bhubaneswar.
- The case was registered and investigated by the CBI, leading to the charge sheet being filed against all accused.
- The accused had submitted loan applications for securing funds to purchase new cars, with questionable actions such as bounced post-dated cheques.
- The High Court disposed of the applications under Section 482 of Cr.P.C. by allowing the appellants to raise their pleas at the appropriate trial court stage.
- The present appeals challenge the final orders dated 4 July 2023 passed by the High Court of Orissa at Cuttack in CRLMC No 34 of 2022 and in CRLMC No 33 of 2022.
- The petition filed by the present appellants for quashing of criminal proceedings was disposed of by permitting the appellants to urge all the pleas raised in the said petition before the trial Court at the appropriate stage.
Also Read: Khalsa University Case: Upholding Constitutional Rights
Arguments
- Shri Naidu, representing the appellants, explains that the firm reached an amicable settlement with the Bank in DRT proceedings, discharging the entire debt by depositing Rs. 7,50,000.
- The two female appellants, accused no. 4 and accused no. 5, had no active role in the matter and were implicated due to their relation with accused no.2.
- The OA before the DRT was disposed of on May 3, 2011, due to the settlement, making continued proceedings against the appellants futile.
- Shri Naidu cites various judgments to support his argument that the settled matter should absolve the appellants from criminal liability.
- The Bank’s counsel confirms the settlement with the borrowers, but the CBI’s representative argues that the settlement does not negate the accused persons’ criminal responsibility.
- Learned Chief Justice of the High Court dismissed the petition under Section 482 of the CrPC.
- The dismissal was based on consideration of the legal position.
- The learned ASG has prayed for the dismissal of the present appeals.
Also Read: Quashing of Criminal Proceedings: Settlement between Bank and Accused Persons
Analysis
- Considering the cases of two women i.e. Accused Nos. 4 and 5, with Accused No. 4 being the wife of Accused No. 2.
- Acknowledgment of compromise between the borrowers and the Bank.
- Precedent set in a similar case where continuation of criminal proceedings was deemed unjustifiable after compromise between borrower and Bank.
- Acceptance that the facts in the present case are undisputed.
- Closure of the loan account upon payment of the amount under the OTS.
- Confirmation that the original Accused Nos. 2 and 3 have passed away.
- Question raised on the justification of continuing the criminal proceedings against the present appellants.
- Possibility of conviction in such cases is remote and bleak.
- Continuation of criminal proceedings would oppress and prejudice the accused.
- Previous judgments indicate that in matters of commercial, financial, civil, family disputes, etc. resolved by parties, High Court should use Section 482 CrPC to end criminal proceedings.
- Present appeals deserve to be allowed based on the above reasons.
Decision
- The criminal proceedings against the appellants in T.R. No 28 of 2002 pending in the Court of Special Judge (CBI) Bhubaneswar is quashed and set aside.
- Criminal Appeal arising out of Special Leave Petition (Criminal) No. 1415 of 2024 is allowed.
- Criminal Appeal arising out of Special Leave Petition (Criminal) No. 1416 of 2024 is allowed.
- The impugned order dated 4 July 2023 passed by the High Court of Orissa at Cuttack in CRLMC No. 33 of 2022 is quashed and set aside.
- The impugned order dated 4 July 2023 passed by the High Court of Orissa at Cuttack in CRLMC No. 34 of 2022 is quashed and set aside.
Case Title: TARINA SEN Vs. UNION OF INDIA (2024 INSC 752)
Case Number: Crl.A. No.-004114-004114 – 2024
