High Court · 2025

CRL MP(MD)No.4772 of 2025BEFORE THE MADURAI BENCH OF MADRAS HIGH COURTDated: 30.04.2025CORAM:THE HONOURABLE MR.JUSTICE B.PUGALENDHICRL MP(MD)No.4772 of 2025in CRL A(MD)No.267 of 20251.K.Annasaraswathi2.D.Mohanraj ... Petitioners VsThe Inspector of Police,SPE:CBI:ACB:Chennai,RC MA1 2010 (A) 0035 ... Respondent Prayer: Petition filed under Section 430 of BNSS to suspend the sentenceimposed in CC.No.4 of 2012 dated 05.02.2025 passed by the II Additional DistrictCourt for CBI Cases, Madurai till disposal of the above appeal.For Petitioners : Mr.A.N.RamanathanFor Respondent : Mr.Karunanidhi,Special Pubic ProsecutorORDERThe petitioners are accused Nos.5 and 6 in CC.No.4 of 2012 on the file of the IIAdditional District Court for CBI Cases, Madurai. They were tried along with otheraccused and they have been found guilty and convicted as follows:1/7 https://www.mhc.tn.gov.in/judis CRL MP(MD)No.4772 of 2025 SectionPunishmentFine (in Rs)default classA5 & A6120 B r/w 471 IPC2 years rigorousimprisonment20,0006 months simpleimprisonmentA5 & A6120 B r/w 420 IPC3 years rigorousimprisonment30,0006 months simpleimprisonment A5 & A6120-B r/w 13(2) r/w 13(1)(d) ofPrevention ofcorruption Act3 years rigorousimprisonment30,0006 months simpleimprisonment A5 & A6471 IPC2 years rigorousimprisonment20,0006 months simpleimprisonment A5 & A6420 IPC3 years rigorousimprisonment30,0006 months simpleimprisonmentAs against the conviction and sentence, they have filed an appeal in Crl A(MD)No.267 of 2025. The earlier petitions filed by the petitioners in CrlMP(MD)No.2706of 2025 and CrlMP(MD)No.3696 of 2025 to suspend the sentence of imprisonmentwere dismissed by this Court, by order dated 30.04.2025 and 25.03.2025. Now thispetition is filed to suspend the sentence pending the appeal.2. For sake of convenience the petitioners are referred to as per their ranksbefore the trial Court.3.The case of the prosecution is that A6, A5 and A1 along with other accusedhave entered into criminal conspiracy, A6 and A5 floated fictitious partnership firm2/7 https://www.mhc.tn.gov.in/judis CRL MP(MD)No.4772 of 2025by name M/s.Sri Kannabiran Packing Industries, applied for a cash credit limit andavailed cash credit of Rs.80,00,000/- without offering any security and obtained asanction of Rs.80,00,000/-. Thereafter the funds were utilised for other purposes.Thus it has resulted wrongful loss to the bank to the tune of Rs.1,26,91,515 as on31.05.2011.4.The learned Counsel appearing for the petitioners by referring to Ex.P.32submits that though the application for loan was made on behalf of A6, at the timeof sanction of the loan they were not partners in the firm. According to the learnedCounsel the petitioners / A5 and A6 did not form part of the partnership firm andtherefore, they cannot be held responsible for the offence. He further submits thatthe sister of A6 property was not accepted as security for sanctioning of the loan andthe loan was not credited to their account when they were partners and only aftertheir retirement the loan was credited in to the partnership account of the newpartners. He further submits that the petitioners to show their bonafide are preparedto deposit a sum of Rs.10 lakh/- each and they have also filed an affidavit to thateffect and therefore, the learned Counsel prayed that the petitioners may beenlarged on bail. They have also surrendered before the trial Court and now theyare confined at Central Prison, Madurai.3/7 https://www.mhc.tn.gov.in/judis CRL MP(MD)No.4772 of 20255.The learned Special Public Prosecutor appearing for the respondent submitsthat A1 Chief Manager of the IOB, Palayamkottai Branch, Tirnelveli. He along withother accused have entered into criminal conspiracy, A6 and A5 floated fictitiouspartnership firm by name M/s.Sri Kannabiran Packing Industries, applied for a cashcredit limit and availed cash credit of Rs.80,00,000/- without offering any securityand obtained a sanction of Rs.80,00,000/-. A1 in pursuance of the conspiracy withA2 to A8 and other cheated the IOB, Palayamkottai Branch in the matter ofsanctioning open cash credit term loan, vehicle loan by wilful violation of all banknorms, without proper credit analysis for consideration by abusing his officialposition and caused loss of Rs.2,42,37,431/- to the bank including interest. 6.This Court considered the rival submissions made and perused the materialsplaced on record.7. A1 was the Chief Manager of IOB. A6 Mohan Raj in his capacity as partnerof the firm has signed in the loan application on 15.07.2008 even before registrationof the firm under the Partnership Act. Thereafter, the firm was registered only on16.07.2008. This A1 being the Chief Manager of IOB through Ex.P23 has made4/7 https://www.mhc.tn.gov.in/judis CRL MP(MD)No.4772 of 2025recommendation to the Regional Office for their approval and clearance. TheRegional Office has approved loan vide Ex.P.36 and Ex.P51 on 21.07.2008. While soon 22.01.2008 a new partner was inducted and the petitioners / A5 and A6 hadretired from the partnership firm. The petitioners claim that they retired frompartnership firm. The petitioners have filed an affidavit of undertaking that they areprepared to deposit a sum of Rs.10 lakh to show their bonafide.8.The petitioners have raised certain arguable points, which can be consideredonly during the final hearing of the appeal. Though the earlier petition wasdismissed on 25.03.2025, the appeal could not be taken up for final hearing so far.Considering the points raised by the petitioners, for the reason that the appeal couldnot be taken up immediately and considering the affidavits filed by the petitionersthat they are prepared to deposit Rs.10 lakh each, in the complainant bank assecurity and to show their bonafide, pending the appeal, this Court is inclined toallow this petition. 9. Accordingly this petition is allowed and the substantive sentence ofimprisonment alone is suspended pending disposal of the criminal appeal and thepetitioners are ordered to be enlarged on bail on executing a bond for Rs.25,000/-5/7 https://www.mhc.tn.gov.in/judis CRL MP(MD)No.4772 of 2025(Rupees Twenty Five Thousand only) with two sureties each for a like sum to thesatisfaction of II Additional District Court for CBI Cases, Madurai. ii.The petitioners shall deposit a sum of Rs.10 lakh each as undertaken by themin the complainant bank in an interest bearing account within a period of four weeksfrom today.iii. This deposit of amount - to be made by the petitioners is voluntary to showtheir bona fide pending the appeal. The petitioners are entitled for refund of thedeposit, on disposal of the main appeal.iv.The petitioners shall report before trial Court daily at 10.30 am.v.If any of the above conditions is violated, the respondent shall move anapplication to cancel this order suspending the sentence of imprisonment. sd/- 30/04/2025 / TRUE COPY / /05/2025 Sub-Assistant Registrar ( C.S. I / II / III / IV ) Madurai Bench of Madras High Court, Madurai - 625 023. DSKTo1.THE II ADDITIONAL DISTRICT JUDGE FOR CBI CASES, MADURAI.6/7 https://www.mhc.tn.gov.in/judis CRL MP(MD)No.4772 of 20252.THE SUPERINTENDENT, CENTRAL PRISON, MADURAI.3.THE SUPERINTENDENT, CENTRAL PRISON (WOMEN), MADURAI.4.THE INSPECTOR OF POLICE, SPE:CBI:ACB:CHENNAI.5.THE ADDITIONAL PUBLIC PROSECUTOR, MADURAI BENCH OF MADRAS HIGH COURT, MADURAI. +1 CC to M/s.AN.RAMANATHAN, Advocate ( SR-5238[I] dated 30/04/2025 ) ORDER IN CRL MP(MD) No.4772 of 2025IN CRL A(MD)No.267 of 2025 Date :30/04/2025 HPS/12.05.2025 /7P/7C Madurai Bench of Madras High Court is issuing certified copies in this format from 17/07/2023 7/7