It was also number mentioned by the officials of the Bank as to whether stocks had been inspected and verified and whether registration of hypothecation charged under Section 125 of the Companies Act was valid and effective or whether the bank was holding certificate of registration from the Registrar of Companies as provided for by the Companies Act.
It was alleged that M s Duncans Agro Industries Limited instead of filing a memorandum of companyplete satisfaction of charge with the Registrar of Companies, itself managed with Shri D.K.Sengupta, Asstt.
Such resolution was drafted in the meeting of the Board of Directors held on May 30, 1985.
Sri G.P. Goenka, Sri Mukherjee and other officials of Tobacco Division of Duncans Agro Industries Limited entered into a criminal companyspiracy to cheat Canara Bank, Lake Road Branch and to obtain credit in their account by falsely and dishonestly declaring that tobacco stocks and stores were available at Guntur for hypothecation to Canara Bank, Lake Road Branch over and above the stocks hypothecated to United Bank of India and Andhra Bank.
The numbere of Shri S.K.Ghosh, Chief Officer Legal along with a Board Note dated May 30,1985 prepared by Shri N.Ghoshal, General Manager of the Bank were placed before the Board of Directors, while recommending transfer limits in favour of New Tobacoo Company, the Bank officials did number specify whether stocks had been inspected and how the Bank would remain a secured creditor of M s Duncans Agro Industries Limited for National Tobacco Company.
It was further alleged in the said FIR that after the approval of the aforesaid Scheme of Arrangement, M s Duncans Agro Industries Limited approached the United Bank on December 3, 1984, to transfer the credit limits standing in their name to M s New Tobacco Company Limited and Shri K.Ghosh, Chief Officer Legal of the United Bank of India gave opinion on January 22, 1985 that the order of the Calcutta High Court was binding on the Bank and companysequently the Bank would either companytinue the advances with transferee Company or to sue transferee Company i.e. M s New Tobacco Company Limited, for recovery of its dues.
A balance sheet of Tobacco Division of Duncans Industries Limited was prepared under the overall charges of B. Mukherjee and audited by M s Price water House and Company, Calcutta, showing total value of stocks and stores of tobacco at Rs.12,39,27,002.19 p. In the said Balance Sheet, advance against hypothecation in the stocks and stores have been shown Rs,13,78,82,585.17 from United Bank and Rs,2,27,12,86,350 from Andhra Bank making a total of Rs.
16,05,95,408.17 No.
It was also Shri G.N.Ghoshal General Manager, Shri N. Ganguli, Chief Manager, Shri S.K.Ghosh, Chief Officer Legal , Shri K. Hajra, Law Officer, Shri D.K. Sengupta, Assistant Manager Advances of United Bank of India and other persons had companyspired with a criminal design to defraud the Bank and to deliberately misappropriate the huge stock lying at different places.
The credit limits were enhanced by Reserve Bank of India from 15.25 crores to 17.50 crores on the request of the Company and recommended by United Bank of India.
M s Duncans Agro Industries Ltd, was submitting the monthly statements of raw materials held by its division, M s National Tobacco Company and such hypothecated raw materials were liable to Physical inspection and verification by Bank authorities.
Sri B. Mukherjee was manager Accounts and responsible for preparation of accounts of Tobacco Division and both the said G.P. Goenka and B. Mukherjee were also amongst the authorised signatories for operating current account.
It is alleged that the stocks worth about Rs.12 crores were either fraudulently and dishonestly removed or disposed of without any payment to the bank with whom the same were hypothecated, with the companynivance of the companycerned bank officials.
The 9th Day of July, 1996 Present Honble Mr. Justice G.N Ray Honble Mr. Justice G.B.Pattanaik T.S.Tulsi, Additional Solicitor General, Vikas Pahwa, S.Bhasme, P.Parmeswaran, and A.Bhattacharya, Advs.
Out of enhanced alleged in the FIR that the Directors of the New Tobacco Company in their lather dated June 26, 1985 addressed to chief Manager, United Bank of India, Royal Exchange Branch, Calcutta, assured that the Boards resolution would be furnished to the Bank to the effect that without the Banks written companysent, the holding level of percentage of shares in the New Tobacco Company by Duncans Agro Industries Limited would number undergo any change.
It was alleged that the said facts had disclosed companymission of offences under Section 1208 read with Sections 409, 420,467,468 and 471 Indian Penal Code.
Pursuant to the authorities given by the Board of Directors Sri G.P.Goenka executed documents with Canara Bank creating a floating charge of stocks and stores at Guntur valuing 158 Lakhs and B. mukherjee declared to Canara Bank that tobacco stocks worth Rs.1,44,40,122/ were lying at Guntur as on 28.3.84 over and above the stocks hypothecated to United Bank and Andhra Bank.
In 1984, M s Duncans Agro Industries Ltd, mode an application before the Calcutta High Court and obtained an order from the High Court on August 10,1984 that National Tobacco Company, a Tobacco Division of Duncans Agro Industries Ltd, would henceforth function under the name and style of new Tobacco Company Limited which would be fully downed subsidiary of M s Duncans Agro Industries Ltd and the management of the said newly companystituted companypany would be carried as per the Scheme of Arrangement approved by the High Court.
Manager Advances to issue a memorandum of companyplete satisfaction of charge when there had been numberrepayment whatsoever.
The Board of Director of United Bank of India resolved that the credit limits of the Bank in respect of National Tobacod Company would be allowed to be transferred in the new account of New Tobacod Company limited with retrospective effect from April 1, 1984 subject to the companydition that the companypany would furnish an undertaking to create mortgage on all their assets and properties in favour of the Bank and without written companysent of the Bank, holding level of percentage share of M s Duncans Agro Industries Limited in the National Tobacod Company would number undergo any change.
By the impugned judgment, the High Court allowed the said criminal revisions and quashed the impugned FIR Nos, RC 4/87 SIU X dated August 14, 1987 and RC I 8 /89 SIU x dated June 12, 1989.
In the second FIR dated 12.6.1989 field by the superintendent of Police, CBI, SPE, STU X , New Delhi against i Sri Gauri Prasad Goenka, Director Duncans Agro Industries Limited, 2 Sri B. Mukherjee Manager, Tobacco Accounts and Authorised Signatory, Duncans Agro Industries Ltd and 3 M s Duncans Agro Industries Ltd. It was alleged that during the companyrse of investigation of RC 4/37 SIU x ,CBI,SPE, New Delhi it transferred that Tobacco Division of M s Duncans Agro Industries Limited had been enjoying credit facilities against hypothecation of stocks and shares of tobacco in the name of M s National Tobacco Company Limited form the United Bank of India, Royal Exchange Branch, Calcutta and Andhra Bank, Kakinada Branch A.P to the tune of 15.25 crores till 1935.
The said Chief Officer of the Bank advised the Bank that the Bank would number be in a position the enforce its right in respect of doubts and immovable assets of the transferor companypany.
Sri B. Mukherjee in the stock statement submitted to United Bank of India declared that value of Tobacco stocks and stores as on 31,3,1984 was Rs.16,92,75,446/ .
Sri G.P.Goenka was one of the Directors of Duncans Agro Industries Ltd and was having the companytrol over the affairs of the said companypany.
1.58 crores was to be financed by the Canara Bank, Lake Road Branch, Calcutta with the companycurrence of United Bank of India and Andhra Bank.
R. No.
It was also alleged in the FIR that in order to defraud the Bank and to nullify the assurance given to the Bank, M s Duncans Agro Industries Limited entered into a memorandum of understanding with M s New Tobacco Company on March 6, 1986 in order to render the very basis of the scheme approved by the High Court infructuous and to companyplete the delinking of Duncans Agro Industries Limited and New Tobacco Company so that the assets of Duncans Agro Industries Limited would remain out of reach of its creditors.
In the FIR, it was also alleged that credit limits were got transferred to the New Tobacco Company and M S DUNCANS Agro Industries Limited had managed with the executive and Directors of the Bank to transfer the debts of the said Duncans Agro Industries Limited to Nil without any payment.
On the same date, the value of stocks and stores worth more than Rs.3 crores was declared to Andhra Bank.
The respondent, Duncans Agro Industries Ltd., moved the Calcutta High Court for quashing the said FIRs lodged by the Central Bureau of Investigation.
Advs.,
By such process, the United Bank of India was defrauded.
available stocks were indicated free from any hypothecation.
The ultimate credit facilities limit sanctioned to m s Duncans Agro Industries Ltd., in the account of M s National Tobacco Company as on January 12, 1984 was to the tune of Rs.
with them for the Respondent J U D G M E N T The following judgment of the Court was delivered Central Bureau of Investigation, V. Duncans Agro Industries Ltd., Calcutta J U D G M E N T N RAY, J. The appeals are directed against a companymon Judgment dated December 23, 1992 Passed by the Calcutta High Court in Crl.
It was alleged in the FIR that after getting the sanction of enhanced credit facilities.
17.50 crores subject to the drawing power according to hypothecation of raw materials stocks etc.
was to the tune of Rs.5.13 crores only as against Rs.16.55 crores on November 30, 1985.
It was inter alia alleged in the FIR dated August 14, 1987 that reliable information was received by the companyplainant, the Superintendent of Police, CBI, SIU x , New Delhi, that M S National Tobacco Company which was a division of M s Duncans Agro Industries Ltd, had cash credit facilities on hypothacation of stocks etc, with United Bank of India, Royal Exchange Branch, Calcutta.
1203 of 1991.
859 of 1991 and Crl.
with him for the appellant Shanti Bhushan and Rajinder Singh, Sr.
and P.N.Misra, Advs.
It was alleged in the FIR that the stock worth about Rs.12 crores were either fraudulantly of dishonestly removed or disposed of without any payment to the Bank although the same were hypothecated with the Bank.
It was further alleged in the FIR that the Board of Directors of United Bank of India were misled because of the omissions and companymissions of the officials of the Bank and the said Board of Directors acted on legal opinion of Shri Ghosh although such opinion was detrimental to the interest of the Bank.
In the FIR, it was alleged that Shri G.P. Goenka, Chairman of M s Duncans Agro Industries Limited, Shri N.K. Jain, Director, New Tobacco Company Limited and Shri Bhasker Banerjee, Director, National Tobacco Company along with some Bank Officers, namely credit facilities, a sum of Rs.
