- (1.)THESE are the four references submitted by learned Sessions Judge, Jaipur City, recommending that the order of the special Magistrate, Jaipur City, dated December 11, 1967, directing the prosecution of M, C. Taneja, M. R. Kirtane and S. C. Bhattacharji, be quashed.
(2.)THE facts of the case, as alleged by the prosecution, are that on October 17, 1959, in pursuance of the scheme for financing Small Scale Industries and at the request of M/s. Gandhi Industries, Jaipur, a cash credit limit of Rs. 10,000, upon the security of the pledge of goods purchased and mercandise deposited on lock and key basis, was sanctioned by the State Bank of India and cash and credit account was allowed to be opened and operated. The limit of the advances upon this cash credit account was such as was not to exceed with interest thereon 60% of the market value of the goods purchased and the mercandise for the time being pledged. This cash credit limit was subsequently enhanced as per request of M/s. Gandhi Industries, Jaipur, to Rs. 25,000, on December 19, 1959. It was further increased to Rupees 1,00,000, on November 2, 1960. It was again increased upto Rs. 1,25,000, on February 23, 1961. Ultimately, it went upto Rs. 1,80,000, on February 5, 1962. During this period the persons who worked as Agents at the State Bank of Jaipur, and who raised the cash credit limit were: 1. M. E. Kirtane Between June 1959 and February, 1961. 2. S. C. Bhattacharjea Between April, 1961, and January, 1962.
(3.)M. C. Taneja Between February, 1962 and December, 1962. Dharm Dev Aggarwal was posted as Godown-keeper from October 17, 1959, to November 4, 1961. Kamesh Chander Ramdeo took over charge from Dharam Deo Aggarwal on November 4, 1961, and he continued to work as Godown-keeper upto December 5, 1962, The godowns of Messers. Gandhi Industries, Jaipur, were located in the premises of the firm. They were first put incharge of the Godownkeeper Dharam Deo Aggarwal. Thereafter they were incharge of Rameshchander Ramdeo. They operated these godowns on behalf of the State Bank from October 17, 1959, to December 5, 1962, for keeping the goods pledged or for giving delivery against delivery letters in compliance with the instructions issued to them by the Bank Agents. It was their duty to see on behalf of the Bank that the goods, in correct quantity, quality arid value, as detailed in the pledged letters, were pledged with the Bank and were given delivery of to the firm and to maintain proper accounts in respect thereto. In December, 1962, the Bank found that the stocks of the firm had accumulated and that the pledged goods were not taken delivery of by the firm. Detailed inspections were, therefore undertaken by the Bank authorities on December 4, and 5, 1962, in the presence of Gurubachan Singh and Rameshchander Ramdeo of the firm, Gandhi Industries Jaipur. A big shortage both in wool and yards of felt was discovered. It was further revealed that the goods stocked in the godown were of inferior quality. The Bank authorities then, with a view to conduct a thorough examination, asked the Deputy Director, Sheep and Wool, Rajasthan, Jaipur, to check-up the goods. Eventually, it was found that there was a shortage of 257 maunds and 39 seers of wool and 1607 yards of woollen felts. Besides, the wool was of very inferior quality. The total value of goods in godowns was estimated to be Rs. 46,138. 12; whereas the value as per stock ledger was Rupees 2,89,185. The outstanding amount on cash credit due to the Bank from the firm was Rs. 1,75,196. 66. The firm could draw 60 per cent of Rs. 46,136. 12 i. e. , Rs. 27,682; whereas in fact it had drawn Rs. 1,75,196. 66 The Bank was thus cheated to the tune of Rs. 1,47,514. 66p. 3. Eventually the Bank authorities lodged a report with the Special Police Establishment, New Delhi, in respect of the above incident. On receipt of the report the police undertook investigation. At the conclusion of the investigation a challan was put up against Gurubachan Singh, proprietor of the firm, Mohanjeet Singh, son of Gurubachan Singh, and two godown-keepers of the Bank, namely, Dharam Deo Aggarwal and Rameshchander Ramdeo to stand trial under Section 420, and Section 120-B, read with Section 420, I. P. C. , in the Court of Special Magistrate, Jaipur. The said Magistrate started committal proceedings in view of the large amount involved in the case.
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