STANDARD CHARTERED BANK Vs. ANDHRA BANK FINANCIAL SERVICES LTD
LAWS(SC)-2006-5-74
SUPREME COURT OF INDIA
Decided on May 05,2006

STANDARD CHARTERED BANK Appellant
VERSUS
ANDHRA BANK FINANCIAL SERVICES LTD Respondents


Referred Judgements :-

V.S.VENKATA SUBBIAH CHETTY V. A.SUBHA NAIDU AND ORS. [REFERRED TO]
FAZAL D.ALLANA V. MANGALDAS M.PAKVASA [REFERRED TO]
MORAN MAR BASSELLOS CATHOLICOS VS. MOAT REV MAR POULOSE ATHANASLUS [REFERRED TO]
HIRALAL VS. BADKULAL [REFERRED TO]
L J LEACH AND CO LIMITED VS. JARDINE SKINNER AND CO [REFERRED TO]
VENKATARAMANA DEVARU STATE OF MYSORE VS. STATE OF MYSORE:VENKATARAMANA DEVARU [REFERRED TO]
BHAGAT SINGH VS. JASWANT SINGH [REFERRED TO]
DARYAO HURMAT S O SATWA MAHENDRA LAL JAINI ROOP CHAND BRUHAN KUMAR SADASHIV RAMCHANDRA DALVI VS. STATE OF UTTAR PRADESH [REFERRED TO]
NEW MARINE COAL CO BENGAL PRIVATE LIMITED VS. UNION OF INDIA [REFERRED TO]
BRAHMA NAND PURI VS. NELD PURI SINCE DECESED [REFERRED TO]
BHARAT SINGH VS. BHAGIRATHI [REFERRED TO]
BHAGWATI PRASAD VS. CHANDRAMAUL [REFERRED TO]
RAMRATI KUER VS. DWARIKA PRASAD SINGH [REFERRED TO]
GOPAL KRISHNAJI KETKAR VS. MOHAMED HAJI LATIF [REFERRED TO]
P C PURUSHOTHAMA REDDIAR VS. S PERUMAL [REFERRED TO]
NAGINDAS RAMDAS VS. DALPATRAM ICHHARAM ALIAS BRIJRAM [REFERRED TO]
VASUDEV RAMCHANDRA SHELAT VS. PRANLAL JAYANAND THAKAR [REFERRED TO]
MANNALAL KHETAN VS. KEDAR NATH KHETAM [REFERRED TO]
SITA RAM BHAU PATIL VS. RAMCHANDRA NAGO PATIL [REFERRED TO]
THIRU JOHN V SUBRAHMANYAM VS. RETURNING OFFICER:RETURNING OFFICER [REFERRED TO]
GUDAVIJAYALAKSHMI VS. GUDA RAMACHANDRA SEKHARA SASTRY [REFERRED TO]
LIFE INSURANCE CORPORATION OF INDIA VS. ESCORTS LIMITED [REFERRED TO]
CONTROLLER OF ESTATE DUTY A P HYDERABAD VS. GODAVARI BAI [REFERRED TO]
INDIRA KAUR VS. SHEO LAL KAPOOR [REFERRED TO]
CHUHARMAL S O TAKARMAL MOHNANI VS. COMMISSIONER OF INCOME TAX M P BHOPAL [REFERRED TO]
S P CHENGALVARAYA NAIDU VS. JAGANNATH [REFERRED TO]
AMMONIA SUPPLIES CORPORATION PRIVATE LIMITED VS. MODERN PLASTIC CONTAINERS PRIVATE LIMITED [REFERRED TO]
HOPE PLANTATIONS VS. LTD [REFERRED TO]
CANARA BANK VS. STANDERED CHARTERED BANK [REFERRED TO]
R V E VENKATACHALA GOUNDER VS. ARULMIGU VISWESARASWAMI AND V P TEMPLE [REFERRED TO]
CITIBANK N A VS. STANDARD CHARTERED BANK [REFERRED TO]
MERCANTILE BANK OF INDIA LTD VS. CENTRAL BANK OF INDIA LTD [REFERRED TO]
T S MURUGESAM PILLAI VS. MANICKAVASAKA DESIKA [REFERRED TO]
BILAS KUNWAR VS. DESRAJ RANJIT SINGH [REFERRED TO]
SIDDIK MAHOMED SHAH VS. MT SARAN [REFERRED TO]
JAGDISH NARAIN VS. NAWAB SAID AHMED KHAN [REFERRED TO]



Cited Judgements :-

SITA CHAUDHRY VS. VERINDER SINGH [LAWS(DLH)-2022-7-28] [REFERRED TO]
HIRALAL VS. MANGILAL [LAWS(MPH)-2010-5-25] [REFERRED TO]
BOBBY KURIAKOSE VS. ST. MARYS HOTELS P. LTD. AND ORS. [LAWS(KER)-2015-3-351] [REFERRED TO]
VALENTINO INTERNATIONAL (P.) LTD. VS. DUGAR SECURITIES LTD., NEW DELHI [LAWS(RAJ)-2011-5-120] [REFERRED TO]
SOHANLAL SEWAK VS. MOHANLAL AGARWALA [LAWS(GAU)-2011-9-78] [REFERRED TO]
RESOURCES INTERNATIONAL VS. ANA BERTHA DO REGO E FERNANDES [LAWS(BOM)-2013-10-133] [REFERRED TO]
NATESAN AGENCIES VS. STATE REP BY SECRETARY TO GOVERNMENT ENVIRONMENT AND FORESTS DEPARTMENT [LAWS(SC)-2019-8-71] [REFERRED TO]
ICICI BANK LIMITED VS. GARODIA VYAPAR PRATISTHAN PRIVATE LIMITED [LAWS(CAL)-2009-2-103] [REFERRED TO]
CHANDRASHEKHAR CHINTAMAN VAIDYA VS. NATIONAL ORGANIC CHEMICAL INDUSTRIES LTD [LAWS(BOM)-2010-2-82] [REFERRED TO]
P.K.ANNA PATIL JANTA SAHAKARI BANK LIMITED VS. RAJAN VISHNU CHAUK [LAWS(BOM)-2019-12-242] [REFERRED TO]
PAWITTAR SINGH WALIA VS. UNION TERRITORY, CHANDIGARH AND OTHERS [LAWS(P&H)-2012-11-454] [REFERRED]
MANGALAM VS. CITREX PRODUCTS LIMITED [LAWS(MAD)-2014-9-44] [REFERRED TO]
DEVAS MULTIMEDIA PRIVATE LTD VS. ANTRIX CORPORATION LTD. [LAWS(SC)-2022-1-44] [REFERRED TO]
STATE OF M P VS. SARJU BAI [LAWS(MPH)-2011-4-33] [REFERRED]
M/S. CAMBRIDGE SOLUTIONS LIMITED VS. GLOBAL SOFTWARE LIMITED [LAWS(MAD)-2016-9-62] [REFERRED TO]
Abdul Mazid Khan VS. Abdul Rasid Khan [LAWS(ORI)-2011-1-50] [REFERRED TO]
THE FINANCIAL TIMES LTD. VS. THE TIMES PUBLISHING HOUSE LTD. [LAWS(DLH)-2016-10-46] [REFERRED TO]
RELIANCE COMMUNICATION LTD. AND ORS. VS. ABHIJEET [LAWS(BOM)-2015-6-150] [REFERRED TO]
STANDARD CHARTERED BANK VS. INDIA GLYCOLS LTD. [LAWS(DLH)-2014-7-136] [REFERRED TO]
STANDARD CHATERED BANK VS. ANDHRA BANK FINANCIAL SERVICES LTD. [LAWS(SC)-2015-8-100] [REFERRED TO]
MAZOR ALI VS. UNION OF INDIA [LAWS(GAU)-2018-1-87] [REFERRED TO]
DEOGIRI NAGARI SAHAKARI BANK LTD. AND ORS. VS. RAVINDRA BALAKRISHNA DESHPANDE [LAWS(BOM)-2015-8-90] [REFERRED TO]
PRABODH JAMNADAS KOTHARI VS. VIKRAM JAMNADAS KOTHARI [LAWS(BOM)-2012-10-204] [REFERRED TO]
K. SUGUMAR VS. P.K. SUNDARAM AND ORS. [LAWS(MAD)-2015-4-421] [REFERRED TO]
BASSU ALI @ BASSU SK. VS. UNION OF INDIA [LAWS(GAU)-2016-3-36] [REFERRED TO]
SHESHRAO S/O PANDHARI GHULE VS. YADAV S/O JYOTIBA BHOSALE [LAWS(BOM)-2016-10-245] [REFERRED TO]
N. RAMJI VS. ASHWATH NARAYAN RAMJI [LAWS(MAD)-2017-6-29] [REFERRED TO]
COMMISSIONER OF INCOME TAX-VIII VS. SVP BUILDERS (INDIA) LIMITED; S V LIQUOR INDIA LIMITED [LAWS(DLH)-2015-12-623] [REFERRED]
M RAMASAMY AND COMPANY VS. JAVADHU HILLS HILL TRIBES LARGE SIZED MULTI PURPOSE CO OPERATIVE SOCIETY LIMITED [LAWS(MAD)-2007-6-268] [REFERRED TO]
NARAYAN MAZUMDAR & 2 OTHERS VS. PABITRA MAZUMDAR [LAWS(GAU)-2016-7-109] [REFERRED]
JAI MAHAL HOTELS PVT. LTD VS. RAJKUMAR DEVRAJ [LAWS(SC)-2015-9-63] [REFERRED TO]
NAYANA SAHOO AND OTHERS VS. PARAMANANDA SAHOO (DEAD) [LAWS(ORI)-2015-11-79] [REFERRED TO]
VEER SINGH KOTHARI VS. STATE BANK OF INDIA [LAWS(ORI)-2008-9-3] [REFERRED TO]
MOSLEM MONDAL VS. UNION OF INDIA [LAWS(GAU)-2010-2-1] [REFERRED TO]


JUDGEMENT

- (1.)These two appeals u/s. 10 of the Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter referred to as "the Act") are against the judgments of the Special Court constituted u/s. 5 of the Act, by which judgments the Special Court dismissed Special Court Suit No. 11/96 and allowed Misc. Petition No. 81/95, which had been transferred to it. As a result of the said two judgments of the Special Court, the claim made by the appellant-Standard Chartered Bank (hereinafter referred to as "SCB") was negatived in dismissed Suit No. 11/96, and the application made by Canara Bank as principal trustee of Canbank Mutual Fund (hereinafter referred to as "CMF") for a direction to Nuclear Power Corporation of India Ltd. (hereinafter referred to as "NPCL") to register CMF as the owner of certain bonds and to pay the interest payable thereon was allowed. FACTS :
(2.)Sometime in December 1991, NPCL issued bonds of two series - 9% tax free bonds and 17% taxable bonds. These bonds were permitted by the Controller of Capital Issues to be sold to banks and financial institutions for private placement. On 24.2.1992 Andhra Bank Financial Services Ltd. (hereinafter referred to as "ABFSL") made an offer to NPCL for placing Rs. 100 crores - Rs.50 crores in 9% tax free bonds and Rs. 50 crores in 17% taxable bonds. On 26.2.1992 NPCL wrote to ABFSL confirming the allotment of the 9% tax free bonds and the 17% taxable bonds, as requested. On 26.2.1992, NPCL issued a letter of allotment (hereinafter referred to as the "LOA") confirming the allotment of 9% tax free bonds of the nominal value of Rs.50 crores (hereinafter referred to as the "suit bonds"). NPCL also said that intimation would be given in due course as to when the allotment letter duly discharged may be exchanged for bond certificates, and that the interest payable on the suit bonds would accrue from the date of allotment, payable on half yearly basis. On the same day ABFSL sold the suit bonds to SCB and in connection with the said sale issued its Cost Memo No. 057 dated 26.2.1992 indicating the particulars of the suit bonds and the cost at which they were being sold i.e.@ 85.05 at the total cost of Rs. 42,52,50,000.00. Against the receipt of the said Cost Memo No. 057 from ABFSL, SCB issued a Pay Order No. 246408 dated 26.2.1992 for the sum of Rs. 42,52,50,000.00. ABFSL, in turn, issued a Banker's Receipt (hereinafter referred to as "BR") No. 23728 acknowledging receipt of the sum of Rs. 42,52,50,000.00 from SCB towards the cost of the suit bonds and undertook to deliver the suit bonds of the value of Rs.50 crores, when ready, in exchange for the said BR duly discharged, and assured that, in the meantime, the suit bonds would be held on account of SCB. On 26/27.2.1992, ABFSL addressed a letter to SCB requiring SCB to hand over its BR No. 23728 in lieu of the original LOA in respect of the suit bonds as well as the 17% NPCL taxable bonds, which were said to have been enclosed with the said letter.
(3.)According to SCB, in April/May 1992, when the securities scam broke out, the officers of SCB made an investigation of its records and found that SCB did not have in its possession the original LOA, but only a photocopy.
;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.