Gujarat High Court
Nirav Ajay Mehta & vs State Of Gujarat & on 27 October, 2015
Author: J.B.Pardiwala
Bench: J.B.Pardiwala
R/CR.MA/14324/2015 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
CRIMINAL MISC.APPLICATION (FOR QUASHING & SET ASIDE
FIR/ORDER) NO. 14324 of 2015
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NIRAV AJAY MEHTA & 1....Applicant(s)
Versus
STATE OF GUJARAT & 1....Respondent(s)
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Appearance:
MR TEJAS P SATTA, ADVOCATE for the Applicant(s) No. 1
PUBLIC PROSECUTOR for the RESPONDENT(s) No. 1
THAKKAR AND PAHWA, ADVOCATES, ADVOCATE for the Respondent(s)
No. 2
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CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA
Date : 27/10/2015
ORAL ORDER
1. Rule returnable forthwith. Ms. Punani, the learned APP, waives service of notice of rule for and on behalf of the respondent No.1. Mr. Nandesh Thakkar, the learned advocate, waives service of notice of rule for and on behalf of the respondent No.2.
2. By this application under section 482 of the Code of Criminal Procedure, 1973, the applicants-original accused seek to invoke the inherent powers of this Court praying for quashing of the proceedings of the Special Case No.12 of 2005 pending in the C.B.I. Court at Ahmedabad arising from a complaint bearing Crime RC No.14(A)/2002-GNR lodged at the Page 1 of 5 HC-NIC Page 1 of 5 Created On Thu Oct 29 01:22:27 IST 2015 R/CR.MA/14324/2015 ORDER CBI/SRE/Gandhinagar Police Station on 04-07-2002 for the offences punishable under Section 120B r/w section 420 of the Indian Penal Code and sections 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988 pending in the court of the learned Special Judge, C.B.I, Court No.4, Ahmedabad.
3. The case of the prosecution may be summarized as under;
3.1 M/s. Saveeson Intrachem Pvt. Ltd., Ahmedabad, having Mr. Nirav Mehta, Mr. Ajay Mehta, Mrs. Hansa Mehta, and Ms. Rupali Nirav Mehta, Directors all residing at No.1552-C, Aharnish Shrimali Society, Navrangpura, Ahmedabad-9 and having its office at 1/1, Purneshwar Chambers, Opp. Dinesh Hall, Ashram Road, Ahmedabad and factory at 5-G.I.D.C., Behrampura, Ahmedabad-22 submitted an application dated nil in NSIC Ltd., Ahmedabad asking for financial assistance for Rs. 100 lac under Bill Discounting Raw Material Assistance Scheme. This applicant submitted incomplete documents. This application was processed on 27.03.1995 by Shri Rohit Dhingra, Joint Manager (Finance) and Mr. V.K. Sawhney, Dy. Director after doing the financial appraisal of the proposal and without pointing out the shortcomings, recommended the proposal for Raw Material Assistance for Rs. 24 lacs to Dr. R.A. Agarwal, Regional General Manager on 28.03.1995 for a limit of Rs.24 lacs. Dr. R.A. Agarwal, Regional General Manager approved his proposal of Raw Material Assistance for Rs.24 lacs on 30.03.1995 without asking for fulfillment of required documents by the party, without going into details of the documents submitted by this party and without following instructions/guidelines/circulars of the NSIC Ltd issued from Page 2 of 5 HC-NIC Page 2 of 5 Created On Thu Oct 29 01:22:27 IST 2015 R/CR.MA/14324/2015 ORDER time to time. These NSIC Ltd. Officials did not get complied with the condition imposed while sanctioning Raw Material Assistance facility of Rs.24 lacs to this company, they disbursed amount from time to time under this Raw Material Assistance facility much in excess of sanctioned limit and in excess of their delegated financial powers.
3.2 M/s. Saveeson Intrachem Pvt. Ltd., Ahmedabad availed this facility under RMA Scheme from NSIC Ltd., Ahmedabad during 31.03.95 to 03.10.1996. During this period NSIC Ltd., Ahmedabad paid total amount of Rs.1,32,19,348/- against Raw Material Assistance. This company made payment of dues for total Rs. 28,92,066/- till date. This company failed to make payment remaining dues of total 1,86,52,960/- including interest and said officials of NSIC Ltd., Ahmedabad suffered wrongful monetary loss of Rs.1,86,52,960/- as on 31.03.2000 (interest charged upto 31.03.1998) and the said company and others had corresponding wrongful gain.
4. It appears that the officials of the Corporation have also been arraigned as accused and they have been charged for the offence punishable under the provisions of the Prevention of Corruption Act, 1988. The only case against the applicants herein is that the Company failed to make the payment of the balance dues of Rs.1,86,52,960/- and the officials of the Corporation failed to recover such dues on account of which the Corporation suffered monetary loss.
5. Mr. Thakkar, the learned counsel appearing for the Corporation submitted that pursuant to a settlement arrived at between the Corporation and the applicants, a figure was Page 3 of 5 HC-NIC Page 3 of 5 Created On Thu Oct 29 01:22:27 IST 2015 R/CR.MA/14324/2015 ORDER arrived at and the entire amount according to the understanding has been deposited by the applicants. He also invited my attention to the No-due Certificate issued by the Corporation in favour of the applicants dated 16 th April, 2015 which is at Annexure-C to this petition. He further pointed out that the accusation even according to the charge-sheet against the applicants is only with regard to failure to repay the amount of loan availed of from the Corporation. There are no allegations of any forgery or any false representation by the applicants at the time when the loan was availed of.
6. Taking into consideration the nature of the offence and the fact that the Corporation, pursuant to a settlement, has been able to recover the amount from the applicants and the Corporation itself does not want to proceed further, no useful purpose would be served to continue with the prosecution so far as the applicants are concerned.
7. In the result, this application is allowed. The proceedings of the Special Case No.12 of 2005 pending in the C.B.I Court at Ahmedabad arising from a complaint bearing Crime RC No.14(A)/2002-GNR lodged at the CBI/SRE/Gandhinagar Police Station on 04-07-2002 for the offences punishable under Section 120B r/w section 420 of the Indian Penal Code and sections 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988 pending in the court of the learned Special Judge, C.B.I, Court No.4, Ahmedabad are hereby ordered to be quashed so far as the applicants are concerned. Rule is made absolute accordingly.
Direct service is permitted.
Page 4 of 5 HC-NIC Page 4 of 5 Created On Thu Oct 29 01:22:27 IST 2015 R/CR.MA/14324/2015 ORDER (J.B.PARDIWALA, J.) Vahid Page 5 of 5 HC-NIC Page 5 of 5 Created On Thu Oct 29 01:22:27 IST 2015