It is further demonstrable from the chargesheet that A 1 and A 2, with the intention to escape personal liabilities, made A 3 and one Mr. Chirag Gandhi directors in ATCOM and got all the loan documents including the Demand Promissory Note DPN signed by the said persons.
On the due dates, ATCOM did number discharge its liabilities with SBI and Dena Bank.
As is evident from the chargesheet the transfer of funds of CC and DL to the current account was with a dishonest intention to further divert the funds from the current account, and for transfer of the said funds of CC and WCDL.
The said bank also companyfirmed that the guarantees issued by Vikram Doshi stood discharged.
The said diversion of funds by A 1 and A 3 deprived the Bank of its security and the entire loan became unsecured.
The investigation further revealed that A 1 got letter of credits hereinafter referred as LCs issued from SBI and Dena Bank in favour of fictitious companypanies propped by the accused and used the said LCs to siphon the funds from these Banks.
It has companye out in the investigation that in order to further divert the funds from the Current Account, A 3 used to issue Pay Yourself cheques by obtaining Bankers Cheque favouring their account with SBI and Dena Bank.
P.C. bearing Criminal Application No.
The sanctioned money, as alleged, was number used for the purpose it was availed of and the sanction terms and companyditions were violated as a companysequence of which the Bank companyld number get the charge in pari passu with the other companysortium Banks.
In the chargesheet, the particulars of the names of fictitious companypanies have been given.
The said list companyers 10 companypanies.
Consequently, the Term Loan was released and paid as per the sanction terms and companyditions.
The said fictitious companypanies got the LCs discounted by attaching their bogus bills and portion of these discount proceeds were used for personal benefits of A 1 and a certain portion was routed back to ATCOM.
Thereafter, when asked for the outstanding position with the existing companysortium members, the accused persons willfully and with the criminal intent to mislead the Bank of Baroda, furnished wrong statements about the outstanding position by giving companysiderably lesser amount as outstanding than the actual.
The LCs beneficiary firms, favoring whom the A 2 and A 3 had requested the LCs to be issued, were companypanies existing only on paper without any companymercial activity.
As alleged, A 1 induced the Bank to release the sanctioned Working Capital Funds to the Current Account and from the said account money was dishonestly diverted to his own accounts with SBI and Dena Bank, to bring down the outstanding liabilities in those accounts.
Despite the said situation, the Bank on 29.01.2003 intimated the sanction to ATCOM, the companypany in question.
A 1 used the cheque leaf available with him for the Current Account and substituted out the words Current Account and substituted them with Cash Credit.
Vikram Doshi A 1 and Sh.
2239 of 2009 before the High Court of Judicature at Bombay and the learned Single Judge vide order dated 24.2.2010 quashed the criminal proceedings pending before the learned Addl.
As further alleged, the amount of loan sought was sanctioned on 24.01.2003 by one Mr. K.K. Aggarwal, General Manager and companymunicated to the branch.
Thus, the total funds released into the Current Account was Rs.560.00 lakhs out of which A 1 dishonestly transferred Rs.352.00 lakhs to SBI and about Rs.200.00 lakhs to Dena Bank, which amounted to diversion of companycerned Banks funds dishonestly and caused wrongful loss to the said Bank.
After the receipt of such No dues certificate the respondent preferred a petition under Section 482 of the Cr.
On that basis, Kotak Mahindra Bank issued a numberdue certificate to M s Atcom Technology Limited stating that on receipt of Rs.42 lacs, there was numberamount outstanding and payable by them in respect of facility advanced by Bank of Baroda.
Metropolitan Magistrate.
It is also perceivable from the chargesheet that though the accused A 1 and A 3 knew that the said Working Capital was sanctioned only for the purpose of taking over the liabilities of UTI Bank and Federal Bank yet they dishonestly diverted the funds to SBI and Dena Bank.
The accused, Vikram Doshi, settled the disputes and paid Rs.42 lacs for settling the dispute.
In the application to the Bank, the accused persons companycealed the fact relating to the dues outstanding against them.
During the pendency of the case before the trial companyrt on 30th March 2009 the informant, Bank of Baroda, had transferred its debts to a trust IARC BOB 01 07 under the companytrol of Kotak Mahindra Bank.
These two companypanies were maintaining their accounts at United Western Bank.
As per the Chargesheet, Rs.114.00 lakhs of Cash Credit the Fund Based portion of Working Capital and Rs.456.00 lakhs the Demand Based portion of Working Capital were released into the Current Account on 27.03.2003.
The terms and companyditions of the sanction was that the entire Working Capital of Rs.570.00 lakhs Rs.114.00 lakhs Rs.456.00 lakhs and the Term Loan of Rs.360.00 lakhs were to be directly paid to the UTI Bank and Federal Bank.
Vineet Joshi, A 2 were Directors for some period of time.
The primary charge for the cash credit and working capital demand loan was the hypothecation of current assets such as stocks, stocks in trade, raw materials and book debts, and, that apart, one of the important terms and companyditions was that the CC, WCDL and Term Loan amounts were to be directly paid to the companypanys account with the UTI Bank and Federal Bank so as to take over the liabilities as well as the securities mortgaged with the two banks.
The learned Single Judge referred to one of its earlier orders and came to hold as follows Both the offices under Sections 406 and 420 are companypoundable with the permission of the companyrt.
As per the terms and companyditions of the said Term Loan, the primary security for the same was the first charge to be created on the fixed assets of the companypany ranking pari passu with the existing Term Lending Institutions.
