- (1.) Heard Counsel for the petitioners and Counsel for the State.
(2.) The petitioners have filed the instant application for quashing the entire criminal proceeding pending before the court below vide G.R. Case No. 983/04 arising out of Bokaro Sector-IV P.S. Case No. 82/04 including the order of cognizance dated 06.05.2005 passed by the Chief Judicial Magistrate, Bokaro whereby cognizance for the offences under Sections 406, 420, 467, 468, 471 and 34 of the Indian Penal Code was taken against the petitioners and they have been called upon to appear and face trial in the case. It may be observed that by an interim order passed in this case, the further proceeding in the case pending against the petitioners before the court below has been stayed.
(3.) Facts of the case stated briefly, relevant for the disposal of this case are as follows: A case was registered on the basis of a written report filed by the informant Manager of the Punjab National Bank. The allegations in the F.I.R. are that the petitioner, being partners of a firm namely M/s. Jai Steels, had obtained a loan of Rs. 15 lakhs from the Informant Bank on 27.09.2001 and had availed cash credit facility to the extent of the loan amount and by way of security, had hypothecated their running stock with the Bank, in addition to furnishing guarantee of a guarantor namely Smt. Jaleshwari Devi. As per the terms of loan and terms of hypothecation, the borrowers were required to deposit the sale proceeds of the stock promptly in the loan account. Thereafter, the loan account used to be operated smoothly and regularly but since after July, 2003, the borrowers were irregular in depositing the sale proceeds. Such irregularity continued despite repeated letters and warnings and as on 31.01.2004, an outstanding balance of Rs. 16,93,478/- stood in the loan account of the petitioners. It is alleged that the officials of the Bank visited the godown and office premises of the petitioners' firm on 16.01.2004 and on inspection they found the entire stock missing. On the allegations that the petitioners have fraudulently removed the stock and dishonestly misappropriated the sale proceeds of the stock without repaying loan amount to the Bank, and have thereby committed criminal misappropriation, criminal breach of trust and offence under Sections 467 and 468 of the Indian Penal Code. The case was lodged at the Police Station and the criminal proceeding initiated against the petitioners;