Decided on September 03,2004



K.S.Kumaran, - (1.) THE appeal is directed against the order dated 8.7.2004 of the Debts Recovery Tribunal I, Delhi dismissing I.A. 776/2004 filed by the appellant herein for initiating proceedings against the Chairman and Managing Director, General Manager and other officers of the respondent-Bank under Section 340, Cr.P.C. on the ground that the respondent-Bank has filed the reply making false averments. THE learned Counsel for the appellant contends that it is not necessary that the offence should have been proved, and that it is sufficient that if it appears to the Court that an offence as contemplated under Section 340, Cr.P.C. has been committed, to take action. He, therefore, contends that the application could not have been rejected on the ground that action could be taken under Section 340, Cr.P.C. only after passing of the final orders.
(2.) The Learned Counsel for the appellant also refers to the provisions of Section 340, Cr.P.C. It is clear from the reading of the provisions of Section 340, Cr.P.C. that the Court has to form an opinion that an inquiry has to be made into any offence referred to therein and then pass appropriate orders. Therefore, it cannot be stated that the Court should immediately take action on the mere application filed under Section 340, Cr.P.C. But, at the same time, the application ought not to have been dismissed. In my view, the application should have been kept pending, and appropriate orders should have been passed after the Court forms a prima facie view as to whether action under Section 340, Cr.P.C is to be taken or not, at the appropriate stage. Therefore, the order of the learned Presiding Officer is set aside with a direction to keep I.A. 776/2004 pending for taking appropriate decision in accordance with law, at the appropriate stage. Appeal is disposed of with these observations. Copy of this order be furnished to the appellant. ;

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