Solan HP .
A.K. Singh, Dy.
In support of the said plea, decision of this Court in Nikhil Merchant Vs.
Kanta Suri, the Executive Directors of M s. Morepen Labs Ltd. having their office at 416 418, Antriksh Bhawan sic , 22, K.G. Marg, New Delhi, companyspired together and in furtherance of the said criminal companyspiracy they, dishonestly and fraudulently made an application to Punjab Sind Bank, Connaught Place, New Delhi for Hire Purchase Finance to the tune of 300 Lacs, by submitting fake and forged purchase orders, invoices and bills relating to supply of machineries and equipments to be installed in their factory works situated in Distt.
Accordingly, a Chargesheet was filed by the CBI on 13th October, 2004 in the Court of Chief Metropolitan Magistrate, Delhi.
Kanta Suri, Executive Directors of M s. Morepen Labs.
Sanjay Malik and Bipin Kakkar and S Sh.
P.C. By the impugned judgment, a learned Single Judge of the High Court has declined to quash the Chargesheet filed against the appellant and other directors of a Company, namely, M s Morpen Laboratories Ltd. for short the Company for offences punishable under Sections 120B, 420, 409, 468 and 471 of the Indian Penal Code, 1860 for short the IPC .
Ltd., New Delhi and other unknown persons.
K.B. Suri, Sushil Suri and Smt.
Briefly stated, the facts, material for adjudication of the issue, arising in this appeal, are as follows A source information was received by the Central Bureau of Investigation for short the CBI that in the year 1999 two Chartered Accountants, namely, Sanjay Malik and Bipin Kakkar, had dishonestly and fraudulently opened caused to be opened several fictitious accounts in some banks in the names of certain companycerns, with an intention and object to facilitate the diversion of bank finance availed by various public limited companypanies for the purpose other than what had been stated in the loan application.
Solan HP .
Ltd. were deposited in fictitious accounts opened in the above name and style at Bank of Rajasthan, Kamla Nagar Branch, Delhi and encashed.
The relevant portion of the FIR reads thus That in June 1999, S Sh.
No suppliers of machineries and equipments were made by M s. K. Chemi Plant Industries and M s. Flexon Hose and Engineering Co. Pvt.
These amounts were then fraudulently deposited in several fictitious accounts of S Sh.
The bank finance raised by the companypany on the pretext of procurement of machineries and equipments were number used for the purpose stated in the application for loan, instead the bank loan was diverted by the above Executive Directors, in companylusion with S Sh.
Case No.3842 of 2008, in a petition filed by the appellant herein under Section 482 of the Code of Criminal Procedure, 1973 for short the Cr.
K. JAIN, J. Leave granted.
This appeal, by special leave, is directed against judgment dated 21st May 2009 delivered by the High Court of Delhi in Criminal Misc.
K.B. Suri, Sushil Suri and Smt.
The bank loan thus released by Punjab Sind Bank Hire Purchase Branch , Connaught Circus, New Delhi was number actually used for the purpose stated in the loan proposal rather the pay orders issued by the bank in the name of fictitious suppliers M s. Chemi Plant Industries and M s. Flexon Hose and Engineering Co. Pvt.
The Chief Metropolitan Magistrate took companynizance of the offences and summoned the accused to stand trial.
Furthermore, the value of the machinery, purportedly purchased with these funds, was reflected in the balance sheet of the Company and even depreciation on the said machinery, amounting to 52,33,066/ , was also claimed in the Income Tax Return Minimum Alternate Tax MAT for the assessment year 1998 1999, without any such machinery having been actually acquired.
In their balance sheet for the assessment year 1999 2000, the Company again claimed the benefit of depreciation in the Income Tax Minimum Alternate Tax amounting to 1,44,88,605/ although numbersuch machinery was purchased by the Company.
Sanjay Malik and Bipin Kakkar at Corporation Bank and Canara Bank and encashed.
In the year 1999, the Company and its directors again applied for hire purchase advance of 3 crores from PSB for purchase of more machines.
It was discovered that although the loan taken by the Company from PSB had been repaid, but the Company never purchased any machinery, utilising the funds disbursed by PSB against the purchase of machinery.
It further transpired that loan proposals were supported by forged proforma invoices, purportedly issued by some suppliers in whose name fictitious bank accounts were opened to encash the Demand Drafts Pay Orders issued by PSB in favour of these firms.
Ltd. and caused the bank to release loan of 200 lacs for the purpose of procurement of machineries and equipments to be installed in their factory works situated in Distt.
On the basis of the said information, a First Information Report FIR was registered against the afore mentioned Company and its directors.
Sanjay Malik and Bipin Kakkar, for other undisclosed number business purposes.
That during the year 1998 also the above Executive Directors of M s. Morepen Labs Ltd. had adopted a similar modus operandi in companylusion with some other unknown persons Chartered Accountants and applied for bank finance to the tune of 200 lacs for purchase of machineries and equipments with an object to divert bank finance for undisclosed number business orders, invoices and bills of fictitious suppliers, i.e. M s. B.K. Chemi Plant Industries and M s. Flexon Hose and Engineering Co. Pvt.
The investigations thus, revealed that the appellant and a number of other persons had companymitted the afore mentioned offences.
