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Delhi District Court

Cbi ­ vs ­ 1. Sh. Manoj Gambhir, on 31 January, 2011

                                                                1



                           IN THE COURT OF SH. V.K. MAHEWARI
                                      SPECIAL JUDGE:DELHI

                                       Complaint Case No.37/2001

 CBI        ­Vs­                     1. Sh. Manoj Gambhir,
                                         S/O Sh. Shiv Dayal,
                                         H.No. 170, Teliwara, Shahdara,
                                         Delhi, Asst. Oriental Insurance Company,
                                         Antriksh Bhawan, 12th Floor, New Delhi. 

                                      2. Sh. Desh Deepak,
                                         S/O Sh. Hans Raj,
                                         Assistant Oriental Insurance Co.
                                         Antriksh Bhawan, 12th Floor, 
                                         New Delhi.
                                         237­D, Pocket A, Phase­II, Mayur Vihar, 
                                         Delhi­42.
                                         Permanent: Parjapati Mohalla, 
                                         Devli Gaon, Ambedkar Nagar Depot,
                                         New Delhi.

                                      3.  Sh. Bharat Kumar,
                                           S/O Late Sh. Kamal Chananna,
                                           Present­164, Teliwar Shahdara.

                                      4. Sh. Jagdish Chander Updhayay
                                         R/O Village: Khount,
                                         P.O. Dhamas, Distt­Almora,

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                                          Uttar Pradesh



                                      5. Sh. Ramesh Updhayay,
                                         S/O Late Sh. P.C. Uphayaya, 
                                         Present: 767, Sector­V, 
                                         Pushp Vihar, Delhi  & 
                                         Machali Bazaar Bhure Cycle Store,
                                         Naziababad,  ( Proclaimed offender )
                                         Permanent: Vill. Khayadi, Distt. Almora,
                                         Uttar Pradesh. 

                                      6. Sh. Devender Updhayaya,
                                         S/O Late Sh. P.C. Updhayaya, 
                                         Village Khatiyadi, Distt.­Almora,
                                         Uttar Pradesh.

                                      7. Sh. Mohan Gambhir,
                                         S/O Sh. Shiv Dayal,
                                         H.No. 170, Teliwara Shahdara.



R. C No.                             55(A)/99/CBI/ACB/ New Delhi.
Under Section                        120B, 420, 467, 471, 477 IPC and Section 12(2)
                                     r/w 13(1)(d) of P.C.  Act, 1988  

Date of Institution of case:       4.6.2001    

Arguments concluded on:                                 28.1.2011                                



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Date of Order:                                          31.01.2011.                                                      

Judgment

1                  According to prosecution this  case was  registered on the basis 

of  written   complaint     of   Sh. D.C. Gupta,  Manager Vigilance of  Oriental 

Insurance   Company   alleging   therein   that   during   the   routine   check   and 

reconciliation of pending claims of  BHEL & BEL by the Divisional Office 

No.16 of Oriental Insurance Company Ltd. at K G Marg, Antriksh Bhavan, 

12th Floor, New Delhi, some of the claims of public sector undertaking which 

were   passed   by   the   Oriental   Insurance   Company     has   not   been   actually 

received by them although in the company's account there were duly debited. 

The matter was referred to Vigilance Cell for further enquiry and Vigilance 

Enquiry revealed that Sh. Manoj Gambhir, Assistant (T) who was dealing 

with Marine and Fire Claim of public sector clients had prepared the false 

claims scrutiny sheets and claim vouchers and got 7 cheques total for Rs.

9,18,210/­  with the  connivance of other Assistant Sh. Desh Deepak.   Sh. 

Manoj Gambhir used to make double payments on claims filed.   Normally 

the second payment was made after a gap of one or two months by removing 

earlier scrutiny sheet and voucher copy and preparing fresh scrutiny sheet 

and vouchers.  After getting the cheque signed he used to alter the name of 


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payee on the cheque.   Further enquiries revealed that the aforesaid claims 

cheques were encashed by opening fictitious accounts with different banks. 

Sh. Manoj Gambhir and Sh. Desh Deepak opened and operated account at 

PNB,   Khanpur,   Delhi   for   M/s   Bharat   Electronics,   Vijaya   Bank,   Chandni 

Chowk   for     M/s   Bharat   Electronics   Pvt.   Ltd.   and   State   Bank   of   Patiala, 

Daryaganj, Delhi for M/s Bhela Chand & Associates. Sh. Manoj Gambhir 

has   also   made   a   confessional   statement   during   the   course   of   vigilance 

enquiry and has also repaid he whole amount to the company.  This fraud has 

been committed in connivance with some private persons, bank officials as 

well as some unknown officials of the company.

2                   Oriental   Insurance   Company   Ltd.   at   K   G   Marg,   Antriksh 

Bhavan,   12th  Floor,   New   Delhi   generally   deals   with   Insurance   of   Govt. 

undertakings and damages/ claims pertaining to Marine, fire, motor theft etc. 

The above referred fraud worth Rs. 9,18,210/­ in Division Office­16 was 

committed   during   1996   in   the   Marine   Claims   department.     During   the 

relevant period one Sh. Manoj Gambhir was working as Assistant in Marine 

Claims   department.   Marine   Insurance   is   a   type   of   insurance   by   which 

company  claims the  insurance   in case of theft/ breakage of the material 

during the transportation.   The claim procedure is very simple.   First the 

insured   company   has   to   inform   and   send   bilty/voucher   vide   which   the 


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material is transported and other concerned documents alongwith the claim 

letter.   Such claim applications are registered and a file is opened in the 

marine section of the Oriental Insurance Company. The registered surveyor 

are deputed to assess the loss/theft.  on the report of surveyor, marine claim 

scrutiny form is prepared.  If the amount is between Rs. one lac to Rs. three 

lac, it has to be passed by two officers.   Accordingly payment voucher is 

prepared   and   passed   by   the   concerned   officers.     Thereafter   the   payment 

voucher is sent to the Account Section for preparation of cheque, further it is 

given to the Dealing Assistant for onward delivery to the concerned party.

3                 During the period 1994   M/s Bharat Electronics Pvt. Ltd. filed 

one marine claim  (loss/damage caused during transportation ) worth of Rs.

83,054/­.   The loss was intimated to Oriental Insurance Company.   D.O.16 

on  31.1.94.     Same  was processed in the Divisional  Office and passed in 

August 1995.  Later the claimant co. withdrew its claim.  At this stage  Sh. 

Manoj Gambhir, the dealing Assistant of   Marine Claims department was 

struck with an idea and decided to encash this claim himself.   He opened 

another file after removing all the claim documents from the original claim 

file   and   initiated   another   Marine   Claims   scrutiny   note   for   approval.     He 

deducted 25% of the total claim of Rs.83,054/­ and prepared voucherfor Rs.

62,291/­ and got it passed.  Sh. Manoj Gambhir made Ms. Swati Agroha, a 


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trainee,   to   write   the   payment   voucher.     After   putting   his   initials   got   it 

approved by the then ADM Sh. Prakash Wadhwa, now retired and sent the 

same   to   accounts   section   for   preparation   of   cheque.   After   obtaining   the 

cheque, the scrutiny note of the second claim seems to have been destroyed 

by Sh. Manoj Gambhir as it could not be traced in the file.  The scrutiny note 

for Rs.83,054/­ was found in the IInd file.  

4                 Sh. Desh Deepak, a colleague and good friend of  Manoj Gambhir 

working in the Accounts Section, in pursuance of criminal conspiracy with 

Sh.   Manoj   Gambhir  prepared the cheque in favour  of  Bharat  Electronics 

instead of Bharat Electronics Ltd.   After it was signed by Sh. Partha Kanji 

Lal, A.D.M, it was handed over to Sh. Manoj Gambhir.  To encash the said 

cheque Manoj and Desh Deepak contacted one Ramesh Chander Upadhyay 

whose brother Devender Prashad Upadhyay was having a current A/C No.

1924 in PNB Khanpur maintained in the name of Manya Finisher.

5                 Investigation   confirms   that   the   account   in   the   name   of   the 

fictitious firm M/s Bharat Electronics at Punjab National Bank, Khanpur, 

Delhi  was opened  by  Jagdish Chander Upadhyay, a private person.   The 

Cheque No. 521685 for Rs. 62,291/­ dt. 13.02.96 originally issued in favour 

of M/s Bharat Electronics was deposited in the said account of M/s Bharat 

Electronics at PNB, Khanpur.  The deposit slip was filed by Jagdish Chander 


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Upadhyay.     Subsequently   out   of   the   said   account,   Rs.   62,000/­   was 

withdrawn by self cheque in March, 1996.

6                 On the second instance, BHEL vide No. 96/5019 filed a claim on 

2.3.95.  The same was processed and a sum of Rs. 1,00,575/­ was sanctioned 

as claim.   Cheque for the said claim was delivered to the concerned party. 

After some time, Manoj Gambhir took out this processed claim file, removed 

the earlier marine claim scrutiny form and prepared another marine claim 

Scrutiny   form   on   04.09.96   and   got   it   finally   passed   on   11.09.96   for   Rs. 

1,01,325/­. After getting it passed from Account Section, Manoj Gambhir 

prepared   the   cheque   in   favour   of   M/s   BHEL   and   got   it   signed   by   the 

concerned officer.   With malafide intentions of encashing the said cheque, 

Manoj Gambhir altered the name of the payee as M/s BHELA CHAND & 

ASSOCIATES.  To encash the said cheque, they floated a fictitious firm by 

name M/s BHELA CHAND & ASSOCIATES with office address at 11­B, 

Saket, New Delhi .  One Bharat Kumar, domestic helper of Manoj Gambhir, 

opened the current account on 04.10.96  at State Bank of Patiala, Darya Ganj 

as sole proprietor of the said firm.  The application for opening this account 

and specimen signature card was written by Manoj Gambhir and signed by 

Bharat Kumar.  One Mahesh, neighbour of Manoj Gambhir, working in the 

same   branch   introduced   the   account   under   the   impression   that   Manoj 


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Gambhir was starting some business.  The above mentioned Cheque for Rs. 

1,01,325/­ originally issued to M/s BHEL Ltd.  was altered into the name of 

M/s BHELA CHAND ASSOCIATES and deposited in account No. 7208 of 

State Bank of Patiala, Darya Ganj on 7.10.96.     On 14.10.96   Rs. 50,000/­ 

was transferred from the said A/C vide cheque No. 651151 to the Account 

No. 666 of M.M. Company Ltd.  Here  M.M.  stands for Mamta Mishra and 

Mohan Gambhir.  Mamta Mishra is wife of the elder brother of Sh. Bhagesh 

Mishra and Mohan Gambhir is the elder brother of Manoj Gambhir.   This 

firm   was   actually   operated   by   Bhagesh   Mishra   and   Manoj   Gambhir. 

Bhagesh   Mishra   is   also   an   Assistant   and   batchmate   of   Manoj   Gambhir 

working   at   Divisional   office   25,   Connaught   Place   Branch   of   Oriental 

Insurance   Company.   Bhagesh   and   Manoj   being   government   employee 

cannot undertake any other business, they started the firm in the name of 

their   relatives,   Mamta   Mishra   and   Mohan   Gambhir,   respectively.     The 

investigation revealed that during the relevant period Mohan Gambhir was 

unemployed and Mamta Mishra was a house wife without any independent 

source of income.  Recovery of many blank signed cheques of account No. 

666   from   the   possession   of   Manoj   Gambhir   clearly   shows   that   M.M. 

Investment was actually operated by Bhagesh and Manoj Gambhir.

7                 At the third instance, Manoj Gambhir obtained another old file of 


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Bharat Electronics Ltd. of 1996 which was already passed in June, 1996 and 

removed   the   original   marine   Claim   Scrutiny   form   and   prepared   a   fresh 

marine claim scrutiny form, got it passed for Rs. 1,78,987/­ on 27.07.96 by 

the   senior   officer.   This   scrutiny   form   could   not   be   traced   during 

investigation.   Old scrutiny photocopy claim form was again placed in the 

file.  The cheque was to be prepared in favour of Bharat Electronics Ltd.  but 

Desh  Deepak   in  connivance with Manoj Ghambir wrote the name of the 

prayee on the cheque in such a way that some space was left between the 

words M/s Bharat Electronics and Ltd., and got it signed by their officer. 

Desh Deepak very cleverly inserted word 'Jee' after M/s Bharat and 'Pvt.' in 

between Electronics and Ltd.  After interpolation it read as ''M/s BharatJee 

Electronics Pvt. Ltd.''

8                 To   encash   this   cheque   Sh.   Manoj   Gambhir   again   managed   to 

open another current account in the name of M/s Bharatjee Electronics Pvt. 

Ltd. at Vijaya Bank Chandni Chowk, C/A No. 7032 in the Joint name of 

Bharat Chananna actually Bharat Kumar and Mohan Gambhir, brother of 

Manoj   Gambhir,   introduced   by   C/A   No.   3381,   Veekay   Electronics   on 

27.3.97 with the initial deposit of Rs. 5000/­.  The application for this C/A 

No.   3381   was   filed   by   Manoj   Gambhir.     The   altered   cheque     of   Rs. 

1,78,987/­ was deposited on 4.4.97 in deposit of cheque was only due to the 


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time taken in opening the account in the name of Bharatjee Electronic Pvt. 

Ltd.  Manoj Ghambir got a Memorandum & Article of Association prepared 

through a Chartered Accountant at Krishna Nagar.

9                 The   amount   deposited   in   A/C   No.   7032   was   later   withdrawn 

through self cheque signed by Bharat Chanana on 9.4.97 for Rs. 75,000/­ on 

11.04.97   for  Rs.  30,000/­  on 20.4.97 for Rs. 15,000/­ on 28.4.97 for Rs. 

40,000/­ and subsequent withdrawals thereafter.   The withdrawal cheques 

were written by either Manoj Ghambir or Bharat Kumar.  



10                At the fourth instance, Sh. Manoj Ghambir on 16.05.97  took out 

another settled claim file of Bharat Electronic Ltd vide claim No. 95/5/95 

dated 28.11.94, for Rs. 72,131/­ removed the original Marine claim Scrutiny 

form and prepared fresh marine claim scrutiny form and got it pased for Rs. 

54,098/­ after deducting 25% of the projected claim of 72,131/­, in favour of 

Bharat   Electronics   Ltd.     Following   the   procedure   adopted   earlier,   they 

altered the cheque and deposited in the A/C of M/s Bharatjee Electronics 

Pvt. Ltd. at Vijaya Bank, Chandni Chowk, Delhi.  On 27.09.97 Rs. 25,000/­ 

was transferred to account no. 7208 of Bhela Chand & Associates at State 

Bank of Patiala Darya Ganj, Delhi, actually operated by Jagdish Chander 

Upadhyay in connivance with Desh Deepak and Manoj Gambhir.


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11                Similarly, at the fifth instance, Manoj Gambhir took out another 

old processed file and prepared a fresh marine claim and got it passed for Rs, 

2,79,678/­   on   27.01.98   and   prepared   the   cheque   in   favour   of   Bharat 

Electronic Ltd. adopting the earlier method, they changed the name of payee 

and   the   cheque  was  deposited  in  the  account   no.  7032  of  M/s  Bharatjee 

Electronics Pvt. Ltd. on 12.03.98.  The deposit slip was returned by Bharat 

Kumar and he later withdrew the amount through self cheque.  The cheques 

were either returned by Manoj Gambhir or Bharat Kumar.

12                At the sixth instance, the marine claim scrutiny form   was not 

available hence  it  is  not clear who actually got it  passed in file. But the 

payment   voucher   was   prepared   by   Desh   Deepak   in   favour   of   Bharat 

Electronics Ltd. and got it approved by one of his officer Smt. Manmeet 

Kaur . This cheque for Rs. 1,66,292/­ was prepared by Desh Deepak in the 

name of  Bharat Electronics instead of Bharat Electronics Ltd. and deposited 

by Manoj Gambhir on 30/12/98 in account no. 2110 at PNB Khanpur.  The 

deposit slip was also written by Manoj Gambhir.   Out of this account , Rs. 

1,65,000/­ was transferred to MM Investment  Co. account no. 666 at Vijay 

Bank, Vigyan Vihar Branch,Delhi on 5.1.1999 and at last by adopting same 

proceedure   Manoj Gambhir also got one more claim passed in favour of 

M/s. BHEL  for Rs. 75,539/­.The cheque was prepared in the name of M/s. 


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BHEL by Desh Deepak and got it signed by the concerned officer .   He 

himself changed M/s BHEL  to M/s BHELA CHAND & ASSOCIATES and 

handed over the cheque to Manoj Gambhir. This cheque was deposited in 

account   no.7208   at   PNB,   Khanpur   on   26.03.1999.   The   amount   was 

withdrawn from this account through cheques .  The file relating to the claim 

could not be traced during the investigation. 

13                Copies required U/s 207 CrPC supplied to all the accused. My 

Ld.  Predecessor Sh.   Dinesh  Dayal, the then Special  judge vide his order 

dated 27/01/2005 directed to frame charges against accused Manoj Gambir, 

Desh   Deepak,   Bharat   Kumar   and   Mohan   Gambhir.   Accordingly   charges 

were   framed   against   all   these   accused   on   08/02/2005.   A   Charge   for   the 

offence punishable U/S 120­B r/w Section 420, 468, 471 and 477­A of IPC 

and U/S 13 (2) r/w Section 13 (1) (d)   of   P C Act 1988 has been framed 

against   all   these   four   accused     and   charges   for   the   substantive   offence 

punishable U/S 420, 468, 471 and 477­A of IPC and U/S 13 (2) r/w Section 

13   (1)   (d)     of     P  C   Act   1988     has   been   framed   against   accused   Manoj 

Ghambir   and   Desh   Deepak   on   8.2.2005.     Accused   Jagdish   Chander 

Upadhaya,   Ramesh   Upadhaya   and   Devender   Upadhaya   were   declared 

proclaimed   offender   at   that   time.   Later   on   accused   Jagdish   Chander 

Upadhaya and Devender Upadhaya were apprehended. My Ld. Predecessor 


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Sh.   B.S.   Mathur,   the   then   Special   Judge   on   23/05/2006   framed   charges 

against both these accused U/S 120B r/w Sec 420, 467, 471 477­A IPC r/w 

Sec 13(2) r/w 13 (1) (d) of P C Act 1988. Accused Devender Upadhaya has 

challenged the order of framing of charge against him. Hon'ble High Court 

vide order dated 17/10/2006 remanded the matter to the Special Judge for re­

hearing   arguments   on   the   point   of   framing   of  charge   and   for  passing   of 

appropriate order in accordance with law. Accordingly, my Ld. Predecessor, 

the   then   Special   Judge   Sh.   G.P.   Mittal   vide   his   order   dated   30/10/2007 

directed to frame charges against accused Devender Upadhaya and framed 

charge against him on 30/10/2007 itself U/S 120B r/w Sec 420, 467, 471 

477­A IPC r/w Sec 13(2) r/w 13 (1) (d)   of P C Act 1988. All the accused 

pleaded   not   guilty   to   the   charges   framed   against   them   and  claimed  trial, 

hence this trail 

14                In order to prove   its case Prosecution has examined following 

witnesses. :

                  PW1 Sh. Mahesh Chand Assistant Manager, State Bank of Patiala 

,   he   has   proved     account   opening   form     in   respect   of   Bhela   Chand   & 

Associates, Ex PW1/A , specimen  signature card Ex PW1/B and affidavit of 

Bharat Kumar Ex PW1/C. 

                  PW2 Sh. Nain Singh has proved production cum seizure memo 


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Ex. PW2/A.

                  PW3   Sh.   Chaman   Lal,   Branch   Manager   PNB,   Gurgaon   has 

proved production cum seizure memo Ex. PW3/A.

                  PW4 Sh. D. C. Gupta, has proved letter dated 15/18.11.99, Ex. 

PW4/A.   He has proved confessional statement of accused Manoj Gambhir 

Ex.   PW4/B.     He   has   also   proved   production   cum   seizure   memo   dated 

30.12.99 Ex. PW4/C vide which he  handed over files Ex. PW6/D, PW6/E, 

PW6/F, Ex. PW6/H, Ex. PW9/J, Ex. PW6/L and Ex. PW6/M.  

                  PW5 Sh. P.S.Bhasin has proved sanction order Ex. PW5/A and 

PW5/B for prosecution against accused Manoj Gambhir and Desh Deepak.  

                  PW6 Sh. Ram Pal has proved official note on file Ex. PW6/A to 

Ex. PW6/O.

                  PW7 Ms. Mita Bhattacharjee has proved vouchers and cheques 

Ex.   PW7/A1,   PW7/A2,   PW7/B1,   PW7/B2,   PW7/C1,   PW7/C2,   PW7/D1, 

PW7/D2, PW7/E1 and PW7/F1.

                  PW8 Sh. Vijay Kumar has proved seizure memo Ex. PW8/A and 

documents mark as PW8/A1 to PW8/A38.

                  PW9 Sh. Shyam Sunder has proved seizure memo in respect of 

cheques Mark Ex.PW9/A1 to PW9/A7 vide memo Ex. PW9/A. 

                  PW10   Sh.   Gulshan   Khera   has   also   proved   claim   files   Ex. 


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PW10/A to PW10/A17.  

                  PW11   Dr.   Sayeed   Ahmed,   GEQD,   Simla   has   proved   opinion 

given by Hari Mohan Saxena and Amar Singh, Ex. PW11/A.

                  PW12 Inspector A K Malik, IO of  this case has proved FIR Ex 

PW12/A, specimen writing of accused Manoj Gambhir running in 39 sheets 

collectively   exhibited   PW12/B,   35   sheets   of   specimen   writings   and 

signatures of accused Desh Deepak collectively exhibited as PW­12/C,   15 

sheets   of   specimen   writings   and   signatures   of   accused   Bharat   Kumar 

collectively   exhibited   as   PW­12/D,   05   sheets   of   specimen   writings   and 

signatures of Mahesh Chandra collectively exhibited as PW­12/E,  07 sheets 

of   specimen   writings   and   signatures   of   Mohan   Gambhir   collectively 

exhibited as PW­12/F. Statement of current account no. 7208 of M/s. Bhela 

Chand & Associates Ex. PW 12/G, seizure memo dated 10/07/2000 Ex. PW 

12/H,   Statement   of   current   account   no.   666   in   the   name   of   M/s.   M.M. 

Investment   running   in   6   sheets   collectively     exhibited   as     Ex.   PW   12/J, 

Memorandum of articles of association relating to Bharat jee Electronics Pvt. 

Ltd. Ex. PW 12/K (Collectively ), Statement of current account no. 731 in 

the name of Bharajeet Electronics Pvt. Ltd. running in 06 sheets collectively 

exhibited as   Ex. PW 12/L, Chargesheet running in 04 pages collectively 

exhibited as  Ex. PW 12/BG. He has given the details of investigation carried 


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out by him. 



DEFENCE OF ACCUSED AND DEFENCE EVIDENCE.

15                Statement of all the six accused recorded u/s 313 Cr.PC.  All the 

accused denied the evidence produced by prosecution against them on the 

judicial file. They have stated that they are innocent. There is no evidence 

against them. They have been falsely implicated in this case. They may be 

acquitted.  

16                None of the accused has produced any evidence in his defence. 



ARGUMENTS OF PROSECUTION.

17                It   is   argued   by   Ld.   SPP,   Sh.   Brajesh   Shukla   that   in   this   case 

Manoj   Gambhir   used   to   make   double   payments   on   claim   files,   second 

payment was normally made after a gap of one or two months by removing 

earlier security seats & voucher copy and thereafter prepared fresh security 

seat.   Accused   persons   used   to   alter   the   name   of   payee   after   getting   the 

cheque   signed   by   authorised   signatory.   Thereafter,   those   signed   cheques 

were fraudulently incashed by dishonestly opening fictitious account with 

the different banks.     Manoj Gambhir and Desh Deepak opened fictitious 

bank   account   in   the   name   of   M/s   Bharat   Electronic,   M/s.   Bharatjee 


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Electronics and M/s. Bhela Chand & Associates at different banks situated at 

Khanpur,   Chandini   Chowk   and   Darya   Ganj   in   connivance   of   their   co­

accused     They   also   operated   the   account   and   withdrawn   the       money 

illegally. 

18                During  vigilance  enquiry Manoj  Gambhir made  a confessional 

statement and re paid the whole amount, which implies the sense that illegal 

act fraudulently and dishonestly committed  by him with active connivance 

of Desh Deepak who prepared the fake cheques. Jagdish Chander Upapadya 

had opened  fictitious account at PNB, Khanpur and deposited / withdrawn 

Rs.   62,291/­     by   issuing   self   cheque.   Ramesh   Upadhaya   whose   brother 

Devender   Upadhaya   was   having   current   account   in   the   name   of   Manya 

Finisher   was   contacted   by   Manoj   Gambhir   for   defrauding   the   money 

obtained   through   trickery   method.   Likewise   Bharat   Kumar,   the   domestic 

helper, of Manoj Gambhir also opened fictitious current account,   Mahesh 

neighbor   of   Manoj   Gambhir,   introduced   the   fake   account   of   M/s.   Bhela 

Chand and Associates from which subsequently cheque of Rs. 50,000/­ was 

transferred to MM company Ltd. They may be convicted.

DEFENCE ARGUMENTS OF ACCUSED MANOJ GAMBHIR.

19                It is argued by ld. Defence counsel that accused Manoj Gambhir 

was working as Assistant in OIC. His job was to prepare the documents with 


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regard   to   Marine   Insurance   claim   and   to   forward   the   same   to  his  senior 

officers.     Documents  prepared  by him   were to be  checked by his  senior 

officers prior  to passing of claim and preparing of cheques.   Preparation of 

cheques of the claims was not the part of his duty. Hand writing expert has 

not appeared in the witness box. PW­ 11 could not prove the fact that both 

the hand writing experts who had examined the questioned hand writing and 

compared   the   same   with   the   specimen   hand   writing   are   unable   to   give 

evidence.  His confession  was forcibly extorted by his seniors, hence, the 

same is inadmissible in evidence against him. He was forced to deposit the 

amount, therefore, no adverse inference can be drawn against him. He is 

innocent. He may be acquitted. 

DEFENCE ARGUMENTS OF ACCUSED DESH DEEPAK.

20                It is argued on behalf of accused Desh Deepak that there are  lot 

of   contradictions   in   the   deposition   of   the   witnesses   examined   by   the 

Prosecution.   Most   of   the   witnesses   has  not   deposed   anything   against   the 

accused . Prosecution has failed to examine the main witness namely Ms. 

Manmeet Kaur who was material witness in the present case as per the case 

of the prosecution, however, in absence of her deposition, the prosecution 

has failed to prove the guilt against the present accused beyond reasonable 

doubt. 


CC No.37/01                                                                                                               18/66
                                                               19

21                It is argued that the prosecution has not exhibited the necessary 

documents to prove its  case against the present accused Desh Deepak. In the 

examination of PW­6, he has stated that he had just examined the accused 

Desh Deepak, however, the substance of the alleged examination of accused 

Desh Deepak conducted by the witness has not been explained or written or 

exhibited   anywhere   or   proved   by   the   Prosecution,     PW­6   was   not   sure 

whether he recorded the statement of the present accused or not. The alleged 

forwarding letter to the witness giving him authority for inquiring into the 

matter has neither been exhibited nor been filed on record, which clearly 

indicates the falsity of the Prosecution case. As per the deposition of the 

PW­6, the case was referred to CBI on the directions/instructions of one Mr. 

Chawla, who was the Chief Vigilance Officer, but the prosecution has failed 

to even cite Mr. Chawla as a witness, therefore the referring of the case to 

CBI   is not proved.  PW­5 has given the sanction order against the accused 

Desh Deepak for  his prosecution . The sanction was neither proper nor legal 

as   the   sanctioning   authority   did   not   give   the   grounds   of   satisfaction. 

Statement   U/S.   161   &   report   U/S.   173   Cr.PC   were   not   put   before   the 

sanctioning authority and the sanctioning authority had not scrutinized the 

same  nor did he apply his mind before granting of sanction  hence sanction 

is bad in law. Departmental proceedings not incorporated in the sanctioning 


CC No.37/01                                                                                                               19/66
                                                               20

order. At the time of granting sanction  accused was not given an opportunity 

of being heard. PW­5 has stated that  it was stated that  format of sanction 

order Ex.PW­5/A was prepared by the Personal and Legal Department and 

he had suggested modifications in that order. Thus order was not prepared by 

the witness, but it was  prepared by personal and legal department of the 

company. It is stated by the witness that the powers to remove an Assistant 

has been delegated to a Manager, but no such authority letter pertaining the 

delegation of power has been filed on record or exhibited by the Prosecution, 

which clearly shows that the sanction order is bad in law. PW­7,  has stated 

that the documents must have been altered subsequently after signing by her 

and Mr. Sethi. This fact could have only been   proved by Mr. Seth, had 

prosecution cited him as a witness. Prosecution has not given any reason for 

not citing Mr. Sethi as witness. In absence of any reasons for   the same, 

deposition of PW­7 cannot be relied upon. Benefit of doubt always goes in 

favour of the accused.   PW­10, has stated that he identifies the initials of 

accused Desh Deepak. However, on the other hand, he has stated that he has 

no expertise in identifying the handwriting. PW­10 has stated that  accused 

Desh Deepak used to put his signatures on the document prepared by him, 

hence, the question of putting initials does not arise. Deposition of PW­11 

cannot be read   as he has not been deputed by the head of the concerned 


CC No.37/01                                                                                                               20/66
                                                               21

department   to   depose   in   the   Court.     No   documentary   evidence   has   been 

produced   as to why PW Amar Singh and Hari Mohan Saxena have not 

appeared in the  witness box. It is  simply stated that the witness Mr. Amar 

Singh   is   suffering   from   brain   hemorrhage   and   witness   Mr.   Hari   Mohan 

Saxena  is  suffering from mental sickness but  no medical documents of the 

said   persons   have   been   filed   on   record,   hence,   the   deposition   of     PW11 

cannot be relied upon. No permission from the court was obtained for  taking 

the   specimen   writing   of   the   accused   persons   by   the   PW­12.   When   the 

specimen writing of the accused persons were taken they were in the custody 

of PW­12/Investigating Officer.   PW12 has also not placed the statements 

U/S. 161 Cr.PC and other documents before the appropriate authority for 

obtaining   sanction     against     accused   Desh   Deepak.     FIR   has   not   been 

exhibited by the concerned person, but it has been exhibited by the IO, who 

is not the writer of the document.

ARGUMENTS ON BEHALF OF BHARAT KUMAR .

22                It is argued on behalf of accused Bharat Kumar that he is a poor 

fellow . His specimen hand writing was taken while he was in police custody 

without permission of the Court . Handwriting experts who has compared the 

specimen hand writing with the questioned hand writing has not appeared in 

the witness box. He has not received any money. He has been made a scrap 


CC No.37/01                                                                                                               21/66
                                                               22

goat being a poor person.   There is no legally admissible evidence against 

him. He is innocent , he may be acquitted.

DEFENCE   ARGUMENTS   ON   BEHALF   OF     ACCUSED   JAGDISH 

CHANDER UPADHAYA AND DEVENDER UPADHAYA.

23                It is argued by Ld. Defence counsel that charge has been framed 

against accused Jagdish Chander Upadhaya without hearing him, therefore 

charge   and     all   the   subsequent   proceedings   against   him   are   illegal.   It   is 

argued that as per section 239 of Cr.PC opportunity of hearing is mandatory 

before framing of charge. 

24                It is argued on behalf of both the accused that no specimen hand 

writing of both these accused was taken. There is no opinion of their hand 

writing on any of the documents. None of the witnesses produced by the 

prosecution has named any of the accused about their involvement in the 

alleged fraud. There is no legally admissible evidence against them. They are 

innocent.   They   may   be   acquitted.  It   is  alleged   against  accused   Devender 

Upadhaya  that  he had  only  introduced the account of Bharat Electronics, 

opened   by   its  proprietor  Bharat  Chandra Joshi, as Proprietor of    of M/s. 

Manya Finishers. Mere introduction of an account is no offence. Ld. Defence 

counsel in support  of his arguments placed reliance on "Manoranjan Das Vs. 

State of Jharkand " 


CC No.37/01                                                                                                               22/66
                                                               23




DEFENCE   ARGUMENTS   ON   BEHALF   OF   ACCUSED   MOHAN 

GAMBHIR.

25                It is argued on behalf of accused Mohan Gambhir that he had 

opened CC account in the name of Bharatjeet Electronics Pvt. Ltd. bearing 

no.   7032   alongwith   Bharat   Chandana   in   Vijaya   Bank,   Chandini   Chowk. 

There is no evidence against him as none of the documents are exhibited by 

PW­8. All the documents have been marked which are Mark PW8/A1 to 

PW8/A33. His alleged specimen hand writing was not taken in presence of 

any   independent   witness.   Prosecution   has   not   produced   any   evidence   to 

show that he has withdrawn/received even a single Rupee from the above 

referred account. It is argued that mere opening of the account in a bank is 

no  offence.     There  is  no   legally  evidence  against  him, hence  he  may  be 

acquitted.

26                I have carefully consider all the arguments of both the parties and 

have gone through the record. 

27                Accused Manoj Ghambir and Desh Deepak the then working as 

Assistant in Marine Claim Department of Oriental Insurance Company Ltd 

( hereinafter called OIC )  . This fact has not been disputed  on behalf of both 

these accused . Even this fact has not been disputed during the trial and at the 


CC No.37/01                                                                                                               23/66
                                                               24

time of addressing of final arguments by their  Ld Defence counsels . Thus  it 

is not in dispute that they are public  servant

28                PW5 Sh B S Bhasin stated that in the month of March 2001 he 

was   working   as   Manager   in     OIC   .   He   had   accorded     sanction   for   the 

prosecution of Manoj Ghambir who was working as Assistant, sanction order 

bears his signatures on each page, which is Ex PW5/A. He has also stated 

that he had  accorded sanction for the prosecution of accused Desh Deepak, 

the then working as Assistant in OIC which bears his signatures on each page 

which is Ex PW5/B. Manager OIC is competent to remove assistant level 

official   being   the  disciplinary authority in respect  of  them  hence  he was 

competent  to remove both the accused from their service.     In this cross 

examination he has denied the suggestion that he had granted the sanction for 

the prosecution of accused in mechanical manner without going through the 

documents .

29                It   is   argued   on   behalf   of   both   the   accused   that   PW5   Sh   B   S 

Bhasin   was   not   the   appointing   authority   of   an   Assistant   hence   he   is   not 

competent   to   accord   sanction   for   the   prosecution   of   accused   who   were 

working   as   Assistant.   In   his   cross   examination   PW5   had   admitted   that 

sanction was not drafted by him but a draft   sanction order was brought to 

him by his legal department.  He had accorded sanction without  application 


CC No.37/01                                                                                                               24/66
                                                               25

of his mind, in a mechanical manner without going through the documents 

therefore sanction for the prosecution of both accused Ex PW5/A and PW5/B 

are bad. He has admitted in his cross examination that power to remove an 

assistant has been delegated to the Manager but he has not produced any 

proof of such powers delegated to him. 

 30               In his cross examination PW 5 has stated that format of sanction 

order was prepared by personal and legal department . He had signed the 

same after going through it and making necessary modification which proves 

that he has granted the sanction for the prosecution of both the accused in 

question after due application of his mind. Relevant portion of his statement 

in this regard is as under:

                  "   Format   of   Sanction   Order   Ex   PW5/A   was   prepared   by   our 

Personal and Legal Department.   I had, after suggesting modification and 

going through the format, signed the same." 

31                PW5   specifically   deposed   on   oath   that   powers   to   remove   an 

Assistant has been delegated to a Manager while the appointing powers were 

with the top management. This witness has been cross examined on behalf of 

both the accused in length. Not even a suggestion has been given to this 

witness that powers to remove an assistant has not been delegated to him 

thus there is no reason to disbelieve his statement that  powers to remove an 


CC No.37/01                                                                                                               25/66
                                                               26

Assistant  were not delegated to him. According to Section 19( c) of P C Act 

1988 authority competent to remove a person from his post is competent to 

grant sanction for his prosecution. Therefore PW5 was competent to accord 

sanction for the prosecution of  both these accused. 

32                Our Hon'ble Supreme Court in this regard in State of Tamil Nadu 

Vs. Damodaran, 1993 Supreme Court Cases (Crl) 272 has held as follows:

                  "Prevention of Corruption Act, 147 - Ss. 5 (1) (e) and 5 (2) read 

with   S.   161,   IPC   -   Non   application   of   mind   and   grant   of   sanction 

mechanically by sanctioning authority - Basis of acquittal by High Court - 

High Court deeply influenced in its decision by the fact that a model 

sanction   order   was   enclosed   with   the   record   sent   to   the   sanctioning 

authority - Held, acquittal not justified - There was no infirmity in the 

order granting sanction - Criminal Procedure Code, 1973 S. 197".



33                Hon'ble Supreme Court in Indu Bhushan Chatterjee vs. State of 

West Bengal, AIR 1958 SC page 148  has held as follows :

                  "  In his evidence in Court the Sanctioning Authority stated 

that the sanction was prepared by the police and put before him by the 

personnel   branch of his office and that before according sanction we 

went   through   all   the   relevant   papers   put   before   him.     The   sanction 

CC No.37/01                                                                                                               26/66
                                                               27

granted   U/S   6   was   perfectly   valid.  The   statement   of   the   sanctioning 

authority did not prove that he merely put his signatures on the readymade 

sanction presented by the police without applying his mind to the facts of the 

case. It was not for him to judge the truth of the allegations made against the 

accused   by   calling   for   the   record   of   the   connected   claim   cases   or   other 

records in connection with the matter from his office . The paper which were 

placed before him apparently gave him the necessary material upon which he 

decided that it was necessary in the hands of justice to accord his sanction." 



34                Hon'ble Supreme Court has held that where the sanction order 

itself is a speaking order in such circumstances it is not necessary to prove it 

by   leading   evidence   that   sanctioning authority has  applied his  due mind. 

Reliance is placed on C S Krishnamurthy Vs. State of Karnataka 2005 IV 

AD (S.C.) 141 wherein  in para No.9 it is observed as follows:

                  "Therefore, the ratio is sanction order should speak for itself and 

in case the facts do not so appear, it should be proved by leading evidence 

that all the particulars were placed before the sanctioning authority for due 

application of mind. In case the sanction speaks for itself then the satisfaction 

of the sanctioning authority is apparent by reading the order.  In the present 

case, the sanction order speaks for itself that the incumbent has to account 


CC No.37/01                                                                                                               27/66
                                                               28

for   the   assets   disproportionate   to   his   known   source   of   income.     That   is 

contained   in   the   sanction   order   itself.     More   so,   as   pointed   out,   the 

sanctioning authority has come in the witness box as witness No.40 and has 

deposed about his application of mind and after going through the reports of 

the Superintendent of Police, CBI and after discussing the matter with his 

legal department, he accorded sanction.  It is not a case that the sanction is 

lacking in the present case. The view taken by the Additional Sessions Judge 

is not correct and the view taken by learned Single Judge of the High Court 

is justified."



35                In this regard, Hon'ble Supreme Court in Superintendent of police 

(CBI) Vs. Deepak Chaudhary - 1995 SCC (Crl.) 1095 has held as follows:

                  ''We find force in the contention. The grant of sanction is only an 

administrative function, though it is true that the accused may be saddled 

with the liability to be prosecuted in a court of law. What is material at that 

time is that the necessary facts collected during investigation constituting the 

offence   have   to   be   placed   before   the   sanctioning   authority   and   it   has   to 

consider   the   material.   Prima­facie,   the   authority   is   required   to   reach   the 

satisfaction   that   the   relevant   facts   would   constitute   the   offence   and   then 

either grant or refused to grant sanction. The grant of sanction, therefore, 


CC No.37/01                                                                                                               28/66
                                                               29

being administrative act the need to prove an opportunity of hearing to the 

accused before according sanction does not arise. The High Court, therefore, 

was   clearly   in   error   in   holding   that   the   order   of   sanction   is   vitiated   by 

violation of the principles of natural justice.''



36                There is no provision of  law for providing hearing to the accused 

by the competent authority before according  sanction for his prosecution.  I 

have   carefully   gone   through   the   sanction   order   Ex   PW5/A   and   B   each 

running in six  sheets each, these are  detailed order having all the material 

particulars   of   this   case.   A   bare   perusal   of   these   orders   reflects   that 

sanctioning   authority   has   passed   these   order   after   due   application   of   his 

mind.  In view of above discussion, this Court is of opinion that prosecution 

has proved valid sanctions for the prosecution of both these accused in this 

case. 

37                Questioned writing was compared with the specimen writing of 

accused   by   GEQD  Hari   Mohan Saxena  and  Amar  Singh.  They have  not 

appeared in the witness box. PW 11 Dr Sayeed Ahmed GEQD has appeared 

in the witness box and stated that Mr Hari Mohan Saxena after his retirement 

is suffering from mental sickness and Mr Amar Singh after his retirement is 

suffering from brain hammerage . They are not in a position to come in the 


CC No.37/01                                                                                                               29/66
                                                               30

Court and to depose in this case. He has stated that both the officers were 

well known to him since 1990 . Both were having good reputation about 

their work . He has proved the hand writing report which is Ex PW11/A by 

identifying their signatures and hand writings as he has seen them writing 

and   signing   .     In   his   cross   examination   he   has   stated   that   he   is   not   in 

possession   of   any   medical   record   with   regard   to   suffering   of   brain 

hammerage   by   Mr   Amar   Singh,   however   he   has   produced   a   letter   Ex 

PW11/D­1 signed by Dr B A Vaid, GEQD in this regard . This letter was 

taken   on   record   on   the   request     of   ld   Defence   counsel   in   the     cross 

examination of PW1 on behalf of accused.   I have gone through this letter 

wherein   both   these   facts   have   been   mentioned.   There   is   no   reason   to 

disbelieve this official letter dated 25.5.2009 addressed to SP CBI, ACB, N 

Delhi . In these circumstances, this Court is of opinion that prosecution has 

proved this fact on record that   both these GEQD who had compared the 

questioned handwriting and signatures of accused with their specimen hand 

writing  and   signatures  are unable to deposed in the Court  on account  of 

medical reasons. 

38                It is argued on behalf of accused that the specimen hand writing 

was  taken  by the IO during the investigation when they were in custody 

forcibly without taking permission from any court, hence the same cannot be 


CC No.37/01                                                                                                               30/66
                                                               31

relied upon. Inspector Anil Malik IO of this case has appeared in the witness 

box as PW 12. He has specifically stated in his examination in chief that all 

the   accused   have   given   their   specimen   hand   writing   and   signatures 

voluntarily.   He   has   specifically   denied   that   specimen   hand   writing   of 

accused   was   taken   while   they   were   in   custody.   Relevant   portion   of   his 

statement is as under:­

                  "Specimen   signature/hand   writing   of   accused   were   not   taken 

while they were is custody".

39                However, he has admitted that he had taken specimen signatures 

and hand writing of accused without permission of any court.  A constitution 

Bench of Eleven Judges of Hon'bel Supreme Court in case titled "State of 

Bombay Vs. kathi Kalu Oghad & Ors" 1961 Supreme Court Reporters held 

as follows:

                  "Testimonial   compulsion   -   obtaining   specimen   writing   and 

thumb impression from accused­Statement of accused in police custody 

used in evidence­ if contravene Constitutional guarantee Under article 

20(2).

                  Held, that there was no infringement of article 20(3) of the 

Constitutional   in   compelling   of   accused   person   to   give   his   specimen 

hand writing or signatures or impression of his thumb finger, palm or 

CC No.37/01                                                                                                               31/66
                                                               32

foot   to   the   investigating   officer   or   under   order   of   a   Court   for   the 

purpose of comparison."

40                In view of above discussion there is no merit in this argument of 

Ld. Defence counsel. 

41                Sh. D.C. Gupta, complainant has appeared in the witness box as 

PW4. He had conducted departmental enquiry of this case and investigated 

the   matter   on   the  instruction  of  Regional  Office.  Relevant  portion  of  his 

statement is as under:

                  "Regional   office   had   referred   the   matter   to   the   vigilance 

department i.e. of my department. I referred the matter to my head office 

about this incident. Head office had authorised me to investigate the matter 

and to submit the report to the head office. The matter was investigated by 

me in the basis of documents including claim file and vouchers. During the 

course of investigation it had come to my notice that after getting the cheque 

signed from concerned officers the name on the cheque were altered in such 

a matter that the original name was also there and it was modified to another 

name like if the original cheque was in the prepared in the name of BHEL 

leaving the further space blank and after getting it signed the cheque was 

again modified in the same ink as Bhela Chand and Associates.  Thereafter 

the cheque was deposited in the account of Bhela Chand and Associates and 


CC No.37/01                                                                                                               32/66
                                                               33

amount was withdrawn by the propreitor of the alleged concerned.   There 

were two such modified cheques pertaining to BHEL and five pertaining to 

BEL as detailed in my complaint Ex.PW4/A. The total amount involved was 

Rs. 9,18,210/­. During   the investigation Mr. Manoj Gambhir had made a 

confessional statement in writing and he had repaid the entire amount to the 

company. The entire amount was deposited with the company on 11/10/99 as 

per   Divisional   Office   16th  Receipt   No.  1577   dt.  11/10/99.   Photo   copy   of 

which is mark X. As the matter was involving banks where the accounts 

were opened, hence, investigation with regard to the bank was beyond my 

jurisdiction, hence the matter was referred to the Head Office by me and on 

their advice and authorisation I made this complaint Ex.PW4/A to CBI so 

that entire episode can be investigated. I also examined Manoj Gambhir and 

Desh Deepak accused. Both are present in court today and I identify them 

(Witness has correctly identified both the accused). Confession of accused 

Manoj   Gambhir   (D94)   who   had   written   and   signed   it   before   me 

voluntarily is Ex. PW4/B. I can identify his handwriting and signatures 

as he had written and signed before me."

42                PW6 has also proved the handwriting and signatures of Accused 

Manoj Gambhir on various documents prepared by him. Relevant portion of 

his statement is as under:

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                                                               34

                  "   I can identify the signatures of Manoj at point A1 in note Ex 

PW 6/A. Same signatures are of Manoj Gambhir accused.   I had seen him 

signing in the  office.  I also identify signatures of accused Manoj Gambhir 

at point A2 and A3 on  notes ExPW6/B and Ex PW6/C. I identify file No. 

96/5017.  It is the file of Divisional office No.16 and  the same is used to be 

kept by me.   It contains page 1 to 11.   The file is   ExPW6/D.   File No.

21/95/5195 is also file of DO 16 and used to be kept in the record room.  The 

same contains page 1 to 82.  The same is ExPW6/E.  File No. 95/5196, page 

1   to   7   is  also   file   of     D  O  No. 16.  The same  is  Ex PW6/F.    I identify 

signatures of accused Manoj Gambhir at point A4 on the note Ex PW6/G. 

File No. 21/97/5132 containing page 1 to  58 is  file of D O No.16 which I 

identify.   The same is Ex PW6/H.   I identify signatures of accused Manoj 

Gambhir at point A 5 on the note Ex PW6/I. File no.21/96/5050 containing 

page 1 to 29 is also file of D O No. 16 which I identify.   The same is Ex 

PW6/J.  I identify signatures of accused Manoj Gambhir at point A 6 on the 

note Ex PW6/K.   File No. M/96/5226 containing pages 1 to  50 is  file of D 

O No.16 which I identify.   The same is Ex PW6/L.  

43                  Similarly, File No.94/5267 containing pages 1 to  34 is  file of D 

O No.16 which I identify.   The same is Ex PW6/M.   I identify signatures of 

accused Manoj Gambhir at point A 7 on  Ex PW6/N and at point A 8 on the 


CC No.37/01                                                                                                               34/66
                                                               35

note   Ex   PW6/O.     I   cannot   identify   who   has   made   the   body   writing   on 

cheques D80 to D86 on encircled portions Q12 to Q18."

44                PW7  Meeta   Bhatacharya has  also   deposed  with regard   to 

preparation of documents  on the basis of which claims were passed and 

cheques prepared . She has identified hand writing of accused Manoj 

Ghambir and Desh Deepak on various documents. Relevant portion of 

her statement is as under:

                  "I have seen voucher no. 504 relating to BHEL.   It is prepared 

and initialed by accused Manoj Gambhir.  I identify his writing  at encircled 

portion Q1 and his initials at point A as I have seen him writing and signing 

as he has worked under me for several years..  I also identify my signatures 

at point B.  This voucher is now exhibited as  Ex PW 7/A1. I also identify 

writing of accused Manoj Gambhir at encircled portion Q18 on cheque Ex 

PW7/A2.   This cheque was signed by me at point A and at point B Mr. 

Partha Kanjilal, Asstt. Divisional Manager at that time.  Similarly, voucher 

No. 1221 mark M5 has been prepared by Manoj Gambhir.   I identify his 

writings  at   encircled   portion Q4 and  his initials  at   point  A and my own 

signatures at point B. The same is Ex PW7/B1 and cheque No. 508778 is 

prepared   by   accused   Desh   Deepak.     I   identify   his   writings   at   encircled 

portion Q16.   I have seen him writing and signing as he has worked under 

CC No.37/01                                                                                                               35/66
                                                               36

me for several years.  I also identify my signatures at point A and that of Sh. 

P K Sethi, Asstt. Divisional Manager  at point B on this cheque Ex PW7/B2 

(D 84).   At the time of signing   the cheque, the voucher particulars   are 

checked.   I had checked the corresponding vouchers before signing cheque 

Ex   PW7/A2   and   Ex   PW7/B2   which   were   made   out   to   Public   Sector 

Companies BHEL and Bharat Electronics Ltd.   Cheque Ex PW7/B2 must 

have been altered subsequently after signing of the cheque by me and Mr. 

Sethi.     The cheque Ex PW7/B2 was prepared on the basis of voucher and 

voucher   is   in   the   name   of   Bharat   Electronics   Ltd.     Similarly,   cheque 

ExPW7/A1 also   was changed subsequently after signing by me and Mr. 

Parha Kanjilal as the corresponding voucher is in the name of BHEL.  File 

Ex PW6/D is file of Division Office no.16. Scrutiny sheet at page No.9 mark 

Q138 is in the handwriting of accused Manoj Gambhir which I identify.  The 

same is Ex PW7/C1.   Similarly, writings at encircled portion Q139 on the 

back   side   of   the   sheet   is   also   that  of   Manoj   Gambhir.    The   same   is   Ex 

PW6/A.  I have also seen scrutiny sheet at page No.4 and the handwriting at 

encircled portion Q140 is that of accused Manoj Gambhir which is Ex PW 

7/C2 and at encircled portion 141 Ex PW6/B is also that of accused Manoj 

Gambhir.     Writing   at   encircled   portion   Q142   Ex   PW6/C   is   also   that   of 

accused Manoj Gambhir.  


CC No.37/01                                                                                                               36/66
                                                               37

45                I   have   seen   file   Ex   PW6/J   of   Division   office   No.16   at   page 

28,writing at encircled portion Q129 on the scrutiny sheet is that of accused 

Manoj Gambhir which I identify and writing at encircled portion Q130 Ex 

PW6/K is also that of accused Manoj Gambhir.  

46                Similarly file Ex PW6/H of DO No.16 contains Scrutiny form 

relating   Bharat   Eelctronics   Ltd..     It   is   prepared   by   Manoj   Gambhir.     I 

identify his handwriting at encircled portion Q131.  The same is Ex PW7/D1 

and I also identify his handwriting at encircled portion Q132, ExPW6/I."

47                PW10   Sh   Gulshan   Khera   also   identified   various   documents 

prepared by accused Manoj Ghambir and Desh Deepak used in this fraud. 



48                On   09/07/1999   accused   Manoj   Kumar   made   on   extra   judicial 

confession in his own hand writing, prior to the registration of this case  i e 

on  19/11/1999,   admitting   his   guilt  and his involvement  in this case and 

pleaded that he be allowed to refund the amount to the company which was 

withdrawn by him due to his fraudulent acts. The extra judicial confessional 

statement of accused is as under:

                  " 1.I have been dealing with non­motor claims i.e., Marine, Fire 

and Engg. of Public Sector Clients which accounts for 99% of the claims. 

CC No.37/01                                                                                                               37/66
                                                               38

The public sector clients are BHEL, BEL, DESU, MTNL, CCICI & CTS etc.

1.

I used to prepare the claims scrutiny sheets and claims voucher & the same used to be passed by ADM & SDM. The cheques were prepared by the Accounts dept. in most of the cases the cheques are prepared by Mr. Desh Deepak Asstt (T) and after preparing the cheque he used to get the cheque signed from the officers and after that the cheques were delivered back to me. I used to handover the cheques to the representative of BHEL & BEL whenever they visited our office. The cheques are not sent by post.

2. In January 96 there was a Marine claim of approximately Rs. 60,000/­ of BEL. The scrutiny was prepared & the claim voucher was also passed. Due to some technical reasons the claim was withdrawn by BEL. From here it struck to my mind that the claim is already approved and voucher passed for payment why should I not utilise the money for our own purpose.

I talked to my friend Mr. Desh Deepak who was working as Asstt. in accounts and used to prepare cheques and told him to take advantage of the opportunity and then we will share the money. Mr. Deepak then prepared the cheque in the name of Bharat Electronics. Mr. Deepak resides in Sake and he knew some friend who was having account with PNB Khanpur. I still don't know the name and the identity of the person. CC No.37/01 38/66 39 The account was opened in the name of M/s. Bhaat Electronics as a sole proprietary firm with the opening amount of Rs. 5,000/­ cash. The cheque was takne by Sh. Deepak and the aranged to deposit the same in this account. After a gap of few days the amount was withdrawn by this friend of Deepak and it was shared equally by three persons namely myself, Deepak and his friend. I was paid Rs. 20,000/­ cash by Mr. Deepak at his residence.

3. Thereafter, I alongwith Sh. Desh Deepak used to come out with new ideas and stared changing the names on the cheque of BEL and BHEL. The total amount misappropriated by us is as under:­ 13/02/1996 BEL 62,291/­ 13/09/1996 BHEL 1,01,325/­ 13/02/1997 BEL 1,78,987/­ 23/02/1998 BEL 2,79,678/­ 22/09/1997 BEL 54,098/­ 18/03/1999 BEL 1,66,000/­ (approx.) BHEL 75,539/­ ­­­­­­­­­­­­­­­­­­ 9,17,9918/­ ­­­­­­­­­­­­­­­­­­­ CC No.37/01 39/66 40 The cheque were deposited by me alongwith Mr. Deepak in various Bank account as under:­ PNB Khanpur account open in the name of M/s. Bharat Electronics and cheques also prepared in the name of M/s. Bharat Electronic.

                  Rs. 62,291/­                                            Claims of BEL

                  Rs. 1,66,000/­



Vijaya Bank Chandini Chowk account opened in the name of Bharatjee Electronics Pvt. Ltd. and the following cheques were deposited:­ Rs. 1,78,987/­ Claims of BEL Rs. 2,79,678/­ Rs. 54,098/­ State Bank of India Darya Ganj current account was opened in the name of M/s. Bhels Chand & Association and the following cheques were deposited:­ Rs. 1,01,325/­ Claim of BHEl Rs. 75,539/­

5. The method used for preparing the cheque is as under

(I) M/S. BHARAT ELECTRONIC (the cheque was prepared in the above style) CC No.37/01 40/66 41 (II)M/S. BHARAT ELECTRONIC LTD.

It was changed as under

M/S. BHARAT JEE ELECTRONICS PVT. LTD.
This was changed after getting the cheque signed.
(III)M/S. BHEL It was changed as under
M/S. BHELA CHAND & ASSOCIATION.

6. The current account was opened wih Vijaya Bank, Chandni Chowk in the name of M/s. Bharatjee Electronics Pvt Ltd. and my neighbour Mr. Bharat Kumar who is my friend also he has withdrawn th money from the bank. The money was again shared by us i.e., Deepak, Bharat and myself. I have some friend in Vijaya Bank who arranged introduction for opening this account from some outside party which I remember was Manish Electronics.

7. The current account with State Bank of Patiala, Darya Ganj was opened in the name of BHELA CHAND & Association as a sole proprietary firm and the name of the Bharat Kumar was mentioned as sole proprietor. The account was introduced by my friend in State Bank of Patiala. The money withdrawn by Mr. Bharat Kumar used to the shared equally by Mr. Bharat CC No.37/01 41/66 42 Kumar, Deepak and myself.

8. In all these cases except item no. 1 double payments were made by making fresh scrutiny sheet and claim voucher and new claim number. Cheques were for different amount slightly higher and paid after the gap of one month or two month and thus the amount were paid to the parties i.e., BHEL and BEL. The old scrutiny and vouchers were removed from the files.

9. I confirm that I alongwith Deepak have not made any other mistake in the financial transactions of the company except for 7 cheques as stated above. I have not made any other irregularity in the records of the company.

With this confession I would like to state that I may be allowed to refund the amount to the company and hope that the company will be kind enough to me.

49 This extra judicial confession was made by accused Manoj Ghambir before PW 4 Sh D C Gupta who has appeared in the witness box . He has been cross examined at length on behalf of all the accused including Manoj Ghambir . Not even a single suggestion has been given to this witness to the effect that accused Manoj Ghambir had not voluntarily made the confession. In furtherance of this confession accused Manoj Kumar has CC No.37/01 42/66 43 deposited the amount in question with the OIC. This confession was made by accused prior to registration of FIR of this case. Accused has not moved any application retracting his above confession during the trial till date in this Court. All these circumstances, proves beyond reasonable doubt that accused had made his confession Ex PW4/B voluntarily without any force, coercion or duress. In these circumstances, this Court is satisfied that confession made by Manoj Ghambir is true and correct . It well settled legal proposition that conviction can be based on an extra judicial confession if found true and voluntarily made .

50 Hon'ble Supreme Court in State of UP Vs A K Anthony AIR 1985 SC­48 with regard to extra judicial confession has stated as follows:

''There is neither any rule of law nor of prudence that evidence furnished by extra judicial confession cannot be relied upon unless corroborated by some other credible evidence the Courts have considered the evidence of extra judicial confession a weak piece of evidence. If the evidence about extra judicial confession comes from the mouth of witness / witnesses who appear to unbiased, not even remotely enemical to the accused, and in respect of whom nothing is brought out which may tent to CC No.37/01 43/66 44 indicate that he may have motive for attributed and untruthful statement of the accused; the words spoken to by the witness are clear, unambiguous and unmistakably convey that the accused is a perpetrator of the crime and nothing is omitted by the witness which may militate against it, after subjecting the evidence of the witness to a rigorous test on the touch stone of the credibility if it passes the test the extra judicial confession can be accepted and can be the basis of conviction. In such a situation to go in search of corroboration itself tents to cast a shadow of doubt or the evidence. If the evidence of extra judicial confession is reliable trustworthy and beyond reproach the same can be relied upon and a conviction can be founded thereon."

51 Similar view has been taken by our Hon'ble Supreme Court in Baldev Raj Vs State of Haryana AIR 1991 SC­37 wherein it held as follows:

" An extra judicial confession, if voluntary, can be relied upon by the Court alongwith other evidence in convicting the accused. The value of the evidence as to the confession depends upon the veracity of the witnesses CC No.37/01 44/66 45 to whom it is made. It is true that the Court requires the witness to give the actual words used by the accused as nearly as possible but it is not an invariable rule that the Court should not accept the evidence, if not the actual words bu the substance were given. It is for the Court having regard to the credibility of the witness to accepts the evidence or not. When the Court believes the witness before whom the confession is made and it is satisfied that the confession was voluntary, conviction can be founded on such evidence. In the instant case, the confession has been properly accepted and acted upon by the lower Courts and there is no scope for any doubt regarding the complicity of the appellant in the crime, The confession of the accused appellant was voluntary. The testimony of witness being responsible persons could not be doubted in the absence of any material to show that they had been motivated to falsely implicate the appellant. There was no infirmity in the confession which had been accepted and relied upon by the Courts and hence has to be maintained."

52 PW1 Mahesh Chandra had identified accused Bharat in State bank of Patiala on 04/10/96 wherein he has opened a current account no. 7208 in the name of Bhela Chand & Associates. Before this witness, Bharat Kumar has stated that he was opening this account as he will start a joint business of financial adviser alongwith accused Manoj Gambir. This witness CC No.37/01 45/66 46 has again confirmed this fact in his cross examination. Relevant portion of his statement in this regard is as under:

" In June, 2000 I was working as Clerk cum typist in State Bank of Patiala, Janpath Branch, New Delhi. I have seen Account Opening Form (D16) pertaining to current account no. 7208 of State Bank of Patiala opened on 4.10.96 in the name of M/s Bhela Chand & Associates. This account was introduced by me and I identify my signatures at point A1 and A2 which I had made as token of introduction. The Form is Ex P| W1/A. I also identify the photographs of Sh. Bharat Kumar on the account opening form Ex PW1/A. Sh. Bharat Kumar lived in my neighbour and I knew him so I had introduced his account. I have seen the corresponding Specimen Signatures card of this account. It is signed by Bharat Kumar at points B1 to B5 which I identify as he had signed on these points in my presence. The specimen signatures card is Ex. P|w1/B. I have also seen affidavit attached with Ex PW1/A and B. The same is signed by Bharat Kumar at points B6, B7 and B8 which I identify.

53 The affidavit is Ex PW1/C. At the time of opening of this account only Bharat Kumar had come to the bank. I can identify accused Bharat Kumar present in the court (correctly identifies). Accused Manoj Gambhir was also living in my neighbourhood. Accused Bharat Kumar CC No.37/01 46/66 47 had told me at the time of opening of this account that he alongwith Manoj Gambhir will start a joint business of Financial Advisor and for the same purpose they wanted to open this account. I also identify accused Manoj Gambhir present in the court (correctly identifies) XXX by Sh. K K Patra counsel for accused Manoj Gambhir It is correct that accused Bharat Kumar came in the court alone to open the account and at that time he told me that he will start a business alongwith Manoj Gambhir and for that purpose he wanted to open this account.

54 Prosecution has produced statement of CC account No.7208 in the name of M/S Bhela Chand and Associates opened by Bharat Kumar which is Ex PW12/G, Certified under Bankers Book of Evidence Act . From this statement of account it is clear that a cheque No.182659 of Rs 75539/­ pertaining one of the above referred claims, was deposited in this account on 26.3.99 and an amount of Rs.60,000/­ was withdrawn by Bharat Kumar on 31.3.99 from this account which proves that this account was used by accused Bharat Kumar in furtherance of criminal conspiracy with his co­ accused Manoj Ghambir and Desh Deepak for withdrawing the defrauded amount.

CC No.37/01 47/66 48 55 From the above discussion it is clear that a criminal conspiracy was going on among the accused to defraud the OIC. The then continuing criminal conspiracy among the accused is also proved from the evidence of handwriting expert who has proved handwriting of accused Desh Deepak and Manoj Gambhir on various documents cheques, vouchers, account opening forms etc. 56 A s per opinion of Hand­writing Expert Ex.PW11/A the following documents are in the Handwriting of Accused Manoj Gambhir. Q­1 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­7/A­1, D­4 Bhugtan/Samayojan Voucher No.00504 dt.13.09.1996 for Rs.1,01,325/­. In fvaour of M/s BHEL, being full and final payment of the claim.

Q­2 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A, A, D­4 Bhugtan/Samayojan Voucher No.00979 dt.13.02.1997 for Rs.1,78,987/­. In fvaour of M/s Bharat Electronics Ltd., being full and final payment of the claim. Q­3 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­1,A, Bhugtan/Samayojan Voucher No.00620 dt.22.09.1997 D­4 for Rs.54,098/­. In fvaour of M/s Bharat Electronics Ltd., being full and final payment of the claim. Q­4 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­7/B­1,A,B Bhugtan/Samayojan Voucher No.01221 dt.23.02.1998 D­4 for Rs.2,79,678/­. In fvaour of M/s Bharat Electronics Ltd., being full and final payment of the claim. CC No.37/01 48/66 49 Q­7 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­2, D­4 Bhugtan/Samayojan Voucher No.01005 dt.21.03.1996 for Rs.1,78,987/­. In fvaour of M/s Bharat Electronics Ltd., being full and final payment of the claim No. 94/5281, G.R. No.97/824787 dt.16.02.1994.

Q­8 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­3,A, Bhugtan/Samayojan Voucher No.00242 dt.20.06.1996 D­4 for Rs.1,78,987/­. In fvaour of M/s Bharat Electronics Ltd., being full and final payment of the claim approved by DCC.

Q­9 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­4,A, Bhugtan/Samayojan Voucher No.00814 dt.27.12.1996 D­4 for Rs.1,78,987/­. In fvaour of M/s Bharat Electronics Ltd., being credit to account II for state cheque No. 863949 dt.20.06.1996.

Q­10 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­5,A, Bhugtan/Samayojan Voucher No.1209 dt.20.02.1998 D­4 for Rs.72,131/­. In fvaour of M/s Bharat Electronics Ltd., being full and final settlement of claim Q­20 PNB, Cheque Deposit Slip dt.30.12.1998, in respect of A/c No.2110 for Rs.1,66,292/­, for depositing of Cheque No.750524 of Indian Overseas Bank, Tolstoy Marg in favor of Bharat Electronics.

Q­22 Account opening form of State Bank of Patiala in Ex.PW­1/A, D­16 respect of M/s Bhela Chand & Associates, 164 Teliwara, Shahdra, Delhi­32. Name of the partner Shri Bharat Kumar, r/o 164 Teliwara, Shahdra, Delhi­32. Introducer Shri Mahesh Chand.

Q­26 State Bank of Patiala, Cash Credit Pay In Slip dt. D­17 04.10.1996, in respect of A/c No.7208 for Rs.5000/­, for credit of M/s Bhela Chand & Associates.

CC No.37/01 49/66 50 Q­28 Q­29A & State Bank of Patiala, Cash Credit Pay In Slip dt. D­18 Q­31 11.10.1996, in respect of A/c No.7208 for Rs.

1,01,325/­, for credit of M/s Bhela Chand & Associates.

Q­32 State Bank of Patiala, Cheque No.651151 dt. Ex.PW2/B21, D­23 12.10.1996 of A/c No.7208 for Rs.50,000/­ favoring M.M. Investment.

Q­34 State Bank of Patiala, Cheque No.651152 dt. B2, D­24 15.10.1996 of A/c No.7208 for Rs.25,000/­ favoring self .

Q­40A State Bank of Patiala, Cheque No.651155 dt. B­5, D­27 28.11.1996 of A/c No.7208 for Rs.5200/­ favoring DFS Fixed Deposit Scheme.

Q­47 State Bank of Patiala, Cheque No.651159 dt. B­9, D­31 31.03.1997 of A/c No.7208 for Rs.2,350/­ favoring M/s Bharatjee Electronics P. Ltd.

Q­65 Vijaya Bank Cheque No.258557 DT.07.06.1997 of Mark PW­8/A­10, A/c No.7032 for Rs.25,000/­ favoring Self. D­55 Q­68 Vijaya Bank Cheque No.258554 DT.26.04.1997 of Mark PW­8/A­11, A/c No.7032 for Rs.15,000/­ favoring Self. D­56 Q­71 Vijaya Bank Cheque No.258555 DT.28.04.1997 of Mark PW­8/A­12, A/c No.7032 for Rs.40,000/­ favoring Self. D­57 Q­74 Vijaya Bank Cheque No.258562 DT.01.10.1997 of Mark PW­8/A­13, A/c No.7032 for Rs.35,000/­ favoring Self. D­58 Q­77 Vijaya Bank Cheque No.258565 DT.20.03.1998 of Mark PW­8/A­14, A/c No.7032 for Rs.80,000/­ favoring Self. D­59 Q­94 Vijaya Bank Cheque No.258552 DT.09.04.1997 of Mark PW­8/A­22, A/c No.7032 for Rs.75,000/­ favoring Self. D­67 CC No.37/01 50/66 51 Q­101 & Vijaya Bank, Chandani Chowk branch Current Mark PW­8/A­25, Q­102 Account Pay in Slip dt.29.09.1997, in respect of D­70 Current Account No.7032 for Rs.54,098/­ for credit of M/s Bharatjee Electronics Pvt. Ltd. On the reverse of the slip details of cheque number 897833 for Rs. 54,098/­ of Indian Overseas Bank, Tolstoy Marg, New Delhi is mentioned.

Q­105 & Vijaya Bank, Chandani Chowk branch Current Mark PW­8/A­28, Q­106 Account Pay in Slip dt.29.09.1997, in respect of D­73 Current Account No.7032 for Rs.1,78,987/­ for credit of M/s Bharatjee Electronics Pvt. Ltd. On the reverse of the slip details of cheque number 882591 dt. 13.02.1997 for Rs.1,78,987/­of Indian Overseas Bank, Tolstoy Marg, New Delhi is mentioned.

Q­107 & Vijaya Bank, Chandani Chowk branch Current Mark PW­8/A­29, Q­108 Account Pay in Slip dt.03.04.1997, in respect of D­74 Current Account No.7032 for Rs.2000/­ for credit of M/s Bharatjee Electronics Pvt. Ltd. On the reverse of the slip details of cheque number 722380 dt. Nil for Rs.2000/­of Vijaya Bank, Vigyan Vihar, New Delhi is mentioned.

Q­109 & Vijaya Bank, Chandani Chowk branch Current Mark PW­8/A­30, Q­110 Account Pay in Slip dt.03.04.1997, in respect of D­75 Current Account No.7032 for Rs.2350/­ for credit of M/s Bharatjee Electronics Pvt. Ltd. On the reverse of the slip details of cheque number 651159 dt.

31.03.1997 for Rs.2350/­of State Bank of Patiala, Darya Ganj, New Delhi, New Delhi is mentioned. CC No.37/01 51/66 52 Q­112 Vijaya Bank, Chandani Chowk branch Current Mark PW­8/A­32, Account Pay in Slip dt.27.03.1997, in respect of D­77 Current Account No.7032 for Rs.5000/­ for credit of M/s Bharatjee Electronics Pvt. Ltd.

Q­114 Vijaya Bank Account Opening Form dt.26.03.1997 in Mark PW8/A­1, respect of CA 7037 of M/s Bharatjee Electronics Ltd. D­46 Introducer was Properitor of V.K. Electricals having A/c No.3381.

Q­123 & Partners liability letter dt.27.03.1997 submitted with Mark PW8/A­5, Q­124 Branch Manager Vijaya Bank, Chandani Chowk, D­50 Delhi by Shri Bharat Channana and Mohan Gambhir, Directors Bharatjee Electronics Pvt. Ltd.

Q­127 The Oriental Insurance Co. Ltd. Marine Claim Ex.PW­7/F­1 Q­128 Scrutiny form in respect of claim No.95/5195, Policy Ex.PW­6/6, A­4, D­7 No.95/50134 in respect of M/s Bharat Electronics Ltd. for claim amount of Rs.72,131/­ . Bill of lading No.AWB22023182784 dt.28.11.1994. The claim was settled for Rs.72,131/­.

Q­129 & The Oriental Insurance Co. Ltd. Marine Claim Ex.PW­6/K, A­6, Q­130 Scrutiny form in respect of claim No.96/5050, Policy D­9 No.94/50016 in respect of M/s BHEL Suratgarh for claim amount of Rs.1,35,600/­. Bill of lading No. 97065 & 97066 dt.02.03.1995. The claim was settled for Rs.1,34,100/­.

Q­131 & The Oriental Insurance Co. Ltd. Marine Claim Ex.PW­7/D­1 Q­132 Scrutiny form in respect of claim No.97/5132, Policy Ex.PW­6/1, A­5, D­8 No.97/50274 in respect of M/s Bharat Electronics Ltd. for claim amount of Rs.2,79,678/­. Bill of lading No.AWB09872653350 dt.06.03.1997. The claim was settled for Rs.2,79,678/­.

CC No.37/01 52/66 53 Q­133 Letter No.8503/678041/CLM­2110 dt.28.05.1997 of Ex.PW­7/D­2, D­8 M/s Bharat Electronics Ltd., Bharat Nagar, Ghaziabad, UP, forwarding thereby documents such as Claim Bill No. CLM/2110, Supplier Invoice No. 1164­803, copy of AWB No. etc. for settlement of claim.

Q­134 Handwritten note mentioning therein that telephonic D­5 message received from Shri Tejpal of Bharat Electronics Ltd., Ghaziabad that they have received 41 Nos. transistors short under AWB No. 098­72653350, HAWB No.29938016, PO No.678041. It has been further mentioned that the estimated amount of loss is Rs.2,78,000/­. We may depute some surveyor.

Q­135 Proforma for compliance of section 64 VB of the Ex.PW­6/N A­7, insurance act 1938. Policy No.94/50004, Claim No. D­11 94/5267.

Q­136 & The Oriental Insurance Co. Ltd. Marine Claim Ex.PW­6/N E­1 Q­137 Scrutiny form in respect of claim No.94/5267, Policy Ex.PW­6/0, A­8, No.94/50004 in respect of M/s Bharat Electronics Ltd. D­11 for claim amount of Rs.83,054/­. Bill of lading No.G.R. No.319417 dt.30.12.1993. The claim was suggested to be settled for Rs.83,054/­ subject to the submission of Carbon Copy of GR, Salvage position, reply of carrier.

Q­138 & The Oriental Insurance Co. Ltd. Marine Claim Ex.PW­7/01 Q­139 Scrutiny form in respect of claim No.95/5195, Policy Ex.PW­6/A, A­1, No.95/50134 in respect of M/s Bharat Electronics Ltd. D­5 for claim amount of Rs.72,131/­ . Bill of lading No.AWB22023182784 dt.28.11.1994. The claim was settled for Rs.54,098/­.

CC No.37/01 53/66 54 Q­140 & The Oriental Insurance Co. Ltd. Marine Claim Ex.PW­7/C­2 Q­141 Scrutiny form in respect of claim No.95/5017, Policy Ex.PW­6/B, A­2, No.94/50016 in respect of M/s BHEL Suratgarh for D­5 claim amount of Rs.1,35,600/­. Bill of lading No. 97065 & 97066 dt.21.03.1995. The claim was settled for Rs.1,01,325/­.

Q­142 This is note in respect of claim No.95/5017 and Ex.PW­6/C, A­3, 96/5050 of M/s BHEL Suratgarh. It has been D­5 suggested in the note that these two claims have been wrongly registered against damages to consignment under G.R. No.97065 and 97065 dt.02.03.1995. It has been further suggested to close the file No.96/5050 and merge it into 96/5017.

57 As per opinion of Hand­writing Expert Ex.PW11/A the following documents are in the Handwriting of Accused Desh Deepak. Q­5 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­7, A, Bhugtan/Samayojan Voucher No.01082 dt. D­4 18.12.1998 for Rs.1,66,292/­. In fvaour of M/s Bharat Electronics Ltd., being full and final payment of the claim.

Q­6 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­8, D­4 Bhugtan/Samayojan Voucher No.01532 dt.

18.03.1997 for Rs.75,539/­. In fvaour of M/s BHEL, being full and final payment of the claim.

Q­11 Oriental Insurance Co. Ltd. Bhugtan, Dava Ex.PW­10/A­9,A, Bhugtan/Samayojan Voucher No.01138 dt. D­4 04.01.1999 for Rs.1,66,292/­. In fvaour of M/s Bharat Electronics Ltd., full and final settlement of the claim.

CC No.37/01 54/66 55 Q­12 Indian Overseas Bank Cheque No.521684 A/c Ex.PW­9/A­1, D­80 No. 4085, dt.13.02.1996 for Rs.62,291/­ favouring M/s Bharat Electronics.

Q­13 Indian Overseas Bank Cheque No.750524 A/c Mark Ex.PW­9/A­2, No. 4085, dt.18.12.1998 for Rs.1,66,292/­ D­81 favouring M/s Bharat Electronics.

Q­14 Indian Overseas Bank Cheque No.882591 A/c Mark Ex.PW­9/A­3, No. 4085, dt.13.02.1997 for Rs.1,78,987/­ D­82 favouring M/s Bharatjee Electricals P.Ltd.

Q­15 Indian Overseas Bank Cheque No.897833 A/c Mark Ex.PW­9/A­4, No. 4085, dt.23.09.1997 for Rs.54,098/­ D­83 favouring M/s Bharatjee Electricals P. Ltd.

Q­16 Indian Overseas Bank Cheque No.508778 A/c Mark Ex.PW­9/A­5, No. 4085, dt.23.02.1998 for Rs.2,79,678/­ D­84 favouring M/s Bharatjee Electricals P. Ltd. Ex.PW­7/B­2 Q­17 Indian Overseas Bank Cheque No.182659 A/c Mark Ex.PW­9/A­7, No. 4085, dt.18.03.1999 for Rs.75,539/­ D­86 favouring M/s Bhela Chand & Associates.

Q­18 Indian Overseas Bank Cheque No.882175 A/c Mark Ex.PW­9/A­6, No. 4085, dt.13.09.1996 for Rs.1,01,325/­ Ex.PW­7/A­2 D­85 favouring M/s Bhela Chand & Associates.

Q­19 PNB Account opening form of Bharat Ex.PW­3/DA, D­12 Electronics Prop. Shri Bharat Chandra Joshi, r/o 91/3, Sector­1, Saket, New Delhi­17. Introducer was Shri Jagdish Prasad Upadhyay of Manya Furnishers 58 U/s 30 voluntarily made confession of co accused implicating himself and his co accused, can be used as corroborating evidence against his CC No.37/01 55/66 56 co accused jointly facing trial with him. A bench of Four Judges of Hon'ble Supreme Court in Balbir Singh Vs State of Punjab AIR 1957 SC 216 in this regard has held as follows:

" So far as the confessional statement of one accused is concerned, it may be taken into consideration against the other accused if it fulfils the condition laid down in S.30 of the Evidence Act . One of the condition is that the confession must implicate the maker substantially to the same extent as the other, accused person against whom it is sought to be taken into consideration."

59 Accused Jagdish Chander Upadhaya has opened CC account No. 2110 under the name and style of Bharat Electronics under the fake name impersonating as Bharat Chandera Joshi, Proprietor of the firm Bharat Electronics. Account opening form of the same Ex PW3/DA bears his ( Jagdish Chandra ) photograph. Accused Jagdish Chander was identified as Bharat Chander Joshi for opening the above said account in the bank by accused Devender Upadhaya as a Proprietor of Manya Furnisher CC A/C No. 1924. Bank has opened this account in the name of "Bharat Electronics" through its Proprietor Bharat Chandra Joshi ( under fake name ) On the identification of accused Devender Upadhaya . Specimen signatures card alongwith this account opening form also bears photograph of accused CC No.37/01 56/66 57 Jagdish Chandra. As the accused Jagdish Chander is appearing in this Court hence this Court can also take judicial notice of the fact that photograph affixed on the account opening form Ex PW3/DA, which is opened in the fake name of Bharat Chandra Joshi, is of accused Jagdish Chander . Both these photographs affixed on account opening form and specimen card bears cross seal of the bank on the same. Prosecution has also proved statement of CC account No. 2110 which is Ex PW3/DB in the name of Bharat Electronics, which is also certified under Bankers Book and Evidence Act. In this account cheques of amount of Rs.62,291/­ and 1,66,292/­ of the claims in question was deposited through clearing and subsequently Rs. 62,000/­ were withdrawn by a self cheque and an amount of Rs.1,65,000/­ was transferred to account of MM by clearing. This is how this account is used for defrauding the OIC.

60 The then ongoing criminal conspiracy among the accused is also proved from the fact that account opening form Ex PW3/DA of Bharat Electronics which is opened by accused Jagdish Chander in the fictitious name impersonating as Bharat Chandra Joshi has been filled in by accused Desh Deepak. According to GEQD report Ex PW11/A hand writing at point Q­19 on Ex PW3/DA is of accused Desh Deepak . This account was opened on the introduction of accused Devender CC No.37/01 57/66 58 Upadhaya, thus it proves that all these accused were acting in furtherance of a common criminal conspiracy hetched by them. 61 Conspiracy consists in a combination or agreement between two or more person to do an unlawful act or to do a lawful act by unlawful means. A conspiracy is an inference drawn from the circumstances. There cannot always be much direct evidence about it. Conspiracy can be inferred even from the circumstances giving rise to a conclusive or irresistible inference of an agreement between two or more persons to commit an offence. Since Conspiracy is often hatched up in utmost secrecy, it is most impossible to prove conspiracy by direct evidence. It has to be inferred from the acts, statements and conduct of parties to the conspiracy. Thus, if it is proved that the accused pursued, by their acts, the same object often by the same means, one performing one part of the act and the other another part of the same act so as to complete it with a view to attainment of the object which they were pursuing, the court is at liberty to draw the inference that they conspired together to effect that object. Conspiracy has to be treated as a continuing offence and whosoever is a party to the conspiracy, during the period for which he is charged, is liable under this section.

CC No.37/01 58/66 59 62 It is not an ingredient of the offence under this section that all the parties should agree to do a single illegal act. It may comprise the commission of a number of acts. The entire agreement must be viewed as a whole and it has to be ascertain as to what in fact the conspirators intended to do or the object they want to achieve. It is not necessary that each member of conspiracy must know each other or all the details of the conspiracy. It is also not necessary that every conspirator must have taken place in each and every act done in pursuance of a conspiracy.

63 Though to establish the charge of conspiracy there must be agreement, there need not be proof of direct meeting or combination , nor need the parties be brought into each other's presence; the agreement may be inferred from the circumstances raising presumption of a common concerted plan to carry out the unlawful design. Conspiracy need not be established by proof which actually brings the party together; but may be shown like any other fact, by circumstantial evidence. So again it is not necessary that all should have joined in the scheme from the first point; those who come in at a later stage are equally guilty.

64 Conspiracy hatched in secrecy and executed in darkness. In a case of conspiracy, it is not expected from the prosecution that it will produce evidence to show that conspirators executed agreement to commit crime before the witnesses to prove the existence of conspiracy. Conspirators take CC No.37/01 59/66 60 all precautions to keep their plan secret hence prosecution cannot produce direct evidence to prove agreement to commit conspiracy. 65 In Kher Singh Vs State AIR 1988 SC 1883 it is observed as follows:

" Generally, a conspiracy is hatched in secrecy and it may be difficult to adduce direct evidence of the same. The prosecution will often rely on th evidence of acts of various parties to infer that they were done in reference to their common intention. The prosecution will also more often rely upon the circumstantial evidence. The conspiracy can be undoubtedly proved by such evidence direct or circumstantial. But the Court must require whether the two persons are independently pursuing the same end or they have come together to the pursuit of the unlawful object. The former does not render them conspirators, but the later does. It is however, essential that the offence of conspiracy required some kind of physical manifestation or agreement the express agreement however need not be proved. Nor mutual meetings of the two persons is necessary. Nor it is necessary to prove the actual words of communication. The evidence as to transmission of thoughts sharing the unlawful design may be sufficient. Conspiracy can be proved by circumstances and other material."

66 In a case of criminal conspiracy any evidence available against CC No.37/01 60/66 61 any of the accused is admissible against all the accused. Once a conspiracy is proved among the accused, act of one conspirator become act of all other conspirators also. In this regard Ld. SPP placed reliance on Shiv Narain Laxmi Narain Joshi Vs State of Maharashtra, (1980 ) 2 Supreme Court Cases 465 has held as follows:

" Penal Code, 1860­ Section 120­B - Since it is impossible to adduce direct evidence of conspiracy, the offence can only be proved largely from the inference drawn from acts or illegal omissions committed by the conspirators in pursuance of a common design­ Once such a conspiracy is proved, act of one conspirator becomes act of the other­ A co­conspirator, who joins subsequently and commits overt acts in furtherance of the conspiracy, held is also liable­ Evidence Act, 1987­ Section 10."

67 Hon'ble Supreme Court in Firozuddin Basheeruddin & Ors. Vs. State of Kerala, (2001) 7 Supreme Court Cases 596 has held as follows:

"Conspiracy is not only a substantive crime but on the basis of it a conspirator can also be held liable for the crimes committed by conspirators in furtherance of the objectives of the conspiracy­ Conspiracy can be established on the basis circumstances evidence­ As regards CC No.37/01 61/66 62 admissibility of evidence strict standards are not necessary inasmuch as any declaration made by a conspirator in furtherance of and during pendency of a conspiracy though hearsay, is admissible against each co­ conspirator­ On facts held, Supreme Court's interference with concurrent finding that criminal conspiracy proved and on the basis offence of murder also made out not called for."

68 Hon'ble Supreme Court in Ram Naryan Popli Vs. CBI AIR 2003, SC 2748 has held as follows:

"The essential ingredient of the offence of criminal conspiracy is the agreement to commit an offence. In a case where the agreement is for accomplishment of an act which by itself constitutes an offence, then in that event no overt act is necessary to be proved by the prosecution because in such a situation, criminal conspiracy is established by proving such an agreement. Where the conspiracy alleged is with regard to commission of a serious crime of the nature as contemplated in Section 120­B read with the proviso to sub Section (2) of Section 120­A, then in that event mere proof of an agreement between the accused for commission of such a crime alone is enough to bring about a conviction under Section 120­B and the proof of any overt act by the accused or by any one of them would not be CC No.37/01 62/66 63 necessary."

69 Hon'ble Supreme Court in P K Narayan Vs. State of Kerala, All India Criminal Law Reporter 1994 (3) 785, has held as follows:

"Penal Code, 1860, Section 120­B ­Evidence Act, 1872, Section ­3 - Criminal Conspiracy ­Essence of Criminal conspiracy - It is an agreement to do an illegal act - Agreement can be proved either by direct evidence or by circumstantial evidence or by both - Complicity of the accused - Circumstances proved before, during and after the occurrence required to be considered to decide about the complicity of the accused ­ But if the circumstances are compatible with the innocence of the accused persons then it could not be held that the prosecution had successfully established its case."

70 It is correct that mere opening or introducing an account in bank is no offence, but opening an account in the bank in fake name and introducing a person in the bank for opening an account in fake name is certainly a criminal offence, and using the fake account for defrauding the money makes it much graver offence.

71 My Ld Predecessor Sh B S Mathur the then Special Judge has framed charges against accused Jagdish Chander Upadhaya and Devender Upadhaya on 23.5.2006. I have also perused corresponding order sheet CC No.37/01 63/66 64 dated 23.5.2006 of my Ld Predecessor which is as under:

" Present: Sh C P Panday, Sr PP for CBI All six accused are on bail Sh R J Tarun, Adv is present.
Charge against accused Jagdish Chander Upadhaya and Devendeer Upadhaya have been framed. They have pleaded not guilty and claimed to be tried."

72 It is correct that my Ld Predecessor has not passed a detailed order of framing charge against both these accused. There is no legal necessity of passing a detailed order for framing of charge if the Court is satisfied that a prima facie case is made out against accused for framing of charge. However my Ld Predecessor has framed detailed charge elaborating all the aspects against both these accused. From the above order sheet it is also clear that charge was framed against both these accused in presence of his counsel Sh R J Tarun whose attendance is marked by name by my Ld Predecessor. No objection was raised on behalf of accused at that time. Accused Jagdish Chander has not challenged the framing of charge against him till date. After framing of the above said charge 23.5.2006 this trial has proceeded till date . First time this objection that charge has been framed against accused Jagdish Chander raised by Ld Defence counsel during the CC No.37/01 64/66 65 course of final argument. Even during the course of final arguments Ld Defence counsel could not point out as to what prejudice has been caused to him by framing of charge against Jagdish Chander on 23.5.2006. In view of above discussion, I am of the opinion that there is no merit in this argument. 73 CC Account No. 7032 in the name of Bhartjee Electronics Pvt Ltd was opened jointly by Bharat Chanana and Manoj Ghambir in Vijaya Bank Chandni Chowk . PW 8 Vijay Kumar appeared in the witness box and has proved seizure memo Ex PW8/A vide which he had given various documents marked PW 8/A­1 to A­33 but IO has not cited any witness who had executed these documents. These documents have only been marked but not proved and exhibited as per law., hence these documents cannot be relied upon against any of the accused Bharat Kumar and Manoj Ghambir. Prosecution has produced various cheque which are marked PW 8/A­8 to PW8/A­24. None of these cheques issued or received under the signatures of accused Manoj Ghambir. All these cheques issued by Bharat Chanana who has also received payments of these cheques as all these cheques are self cheques. Thus prosecution has also failed to prove that accused Mohan Ghambir received any amount out of the defrauded amount. There is no evidence on the file that any of the cheque of claims in question was CC No.37/01 65/66 66 deposited by accused Mohan Ghambir in this account. Mere opening a joint account does not constitute and offence unless some dishonest intention of the person concerned is proved to commit a crime. Thus this Court is of opinion that prosecution has failed to prove its case against accused Mohan Ghambir beyond reasonable doubts, therefore he is entitled for benefit of doubt.

74 In view of above discussion this court is of opinion that prosecution has proved its case beyond reasonable doubts against accused Manoj Ghambir, Desh Deepak, Bharat Kumar, Jagdish Chander Upadhaya and Devender Upadhaya for the commission of offence U/s 120­B, 420, 467, 471 477A IPC r/w Section 13 (1) (d) r/w Sec. 13 (2) of P C Act, 1988. Prosecution has also proved its case beyond reasonable doubts against accused Manoj Ghambir and Desh Deepak for the substantive offence punishable U/s 420, 467, 471 IPC r/w Section 13 (1) (d) r/w Sec. 13 (2) of P C Act, 1988.

75 In view of above discussion accused Mohan Ghambir is entitled for benefit of doubt, hence acquitted.

76 Ordered accordingly.

Announced:                                       (V K MAHESHWARI )
Dt.  31.1.2011                                   SPECIAL JUDGE: DELHI



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IN THE COURT OF SH. V K MAHESHWARI :SPECIAL     

JUDGE;  TIS HAZARI: DELHI



                                                          Complaint Case No.37/2001



CBI                                  Vs                                   Manoj Ghambir  & Ors.

ORDER ON SENTENCE:

Vide my detailed judgment dated 31.1.2011. I hold guilty Manoj Ghambir, Desh Deepak, Bharat Kumar, Jagdish Chander Upadhaya and Devender Upadhaya for the commission of offence U/s 120­B, 420, 467, 471 477A IPC r/w Section 13 (1) (d) r/w Sec. 13 (2) of P C Act, 1988. Manoj Ghambir and Desh Deepak were also convicted for the substantive offence punishable U/s 420, 467, 471 IPC Section 13 (1) (d) r/w Sec. 13 (2) of P C Act, 1988.

Arguments on sentence heard. It is argued on behalf of conivct Manoj Kumar that he was dismissed from the services of Insurance CC No.37/01 67/66 68 company . He is the only earning member of his family consisting of his old aged ailing parents, his wife and one school going girl of 10 years old. He has paid entire money to Oriental Insurance Company, hence lenient view may be taken against him.

It is argued on behalf of convict Desh Deepak that he is facing this trial for the last 10 years . He is only earning members of his family, consisting of his wife, two school going children . He has to look after his old aged mother and his younger brother. He is not a previous convict, hence a lenient view may be taken against him.

It is argued on behalf of convict Devender Prasad Upadhyaya that due to long trial of six year, he has suffered a lot . He is only earning members of his family, consisting of his wife, two school going children . He has to look after his old aged mother who is patient of blood pressure . He is not a previous convict, hence a lenient view may be taken against him.

It is argued on behalf of convict Jagdish Chand CC No.37/01 68/66 69 Upadhyaya that he has suffered a lot due to long trial of six years . He is only earning members of his family, consisting of his wife, two minor children . He has to look after his old aged, ailing parents . He is not a previous convict, hence a lenient view may be taken against him.

It is argued on behalf of convict Bharat Chanana that due to long trial of six years he has suffered a lot . He is only earning members of his family, consisting of his wife, one minor daughter . He is not a previous convict, hence a lenient view may be taken against him.

                                     It   is   argued   by   Ld   Senior     PP   for     CBI     that     no 

leniency     be   shown   to   convicts     in   awarding   the   sentence   as   it   will   be 

undesirable and will also be against public interest. Accused Manoj Ghambir and Desh Deepak are public servant. He has argued that convicts are involved in a serious economic offence. They should be awarded severe punishment and heavy fine may also be imposed on them. It is argued that convict Manoj Ghambir is habitual in indulging such type of offences . He is CC No.37/01 69/66 70 involved in another such case which is pending in this Court titled CBI Vs Anju Dhanda & Ors RC: 64(A)/99 ACB.

It is further submitted by Ld Senior PP that in criminal appeal No. 299 of 1997, titled State Rajasthan Vs Dhool Singh, Hon'ble Supreme Court, on December 18th , 2003 has held that "the Courts should bear in mind that there is a requirement in law that every conviction should be followed by an appropriate sentence within the period stipulated in law. Discretion in this regard is no absolute or whimsical. It is controlled by law and to some extent by judicial discretion applicable to the facts of the case. Therefore, there is need for the Courts to apply its mind, while imposing sentence , as to why it should be less then maximum sentence prescribed under law."

Convicts be awarded consecutive sentence.

Corruption is a scourge that not only severally affects progress and development in the society but also poses a grave challenge to governance itself. The United Nations Global Reports on Crime and Justice quotes public opinion surveys in a number of countries, to point out that citizenry in those countries ranks corruption as one among the five most important problems facing their society. More importantly, the public in such CC No.37/01 70/66 71 countries seriously questions the ability of the Criminal Justice Administration to provide any bulwark against corruption. The consequence of such perceptions is a growing public cynicism and distrust in almost all the Government institutions, which is a matter of serious concern. Unfortunately, India ranks prominently high in the list of countries plagued by corruption. Anti Corruption measures in India are perceived by the people to be weak and ineffective. More than corruption itself , it is the widespread public perception that corruption is not or would not be punished, that is detrimental to the society.

I have carefully considered all the arguments raised before me and have gone through the record. After considering all the facts and circumstances of this case, and arguments raised in the Court and the fact that entire amount has been paid and all the Convicts are not the previous convict , I considered it proper to award One year RI along with a fine of 10,000/­ ( Ten Thousand) each I D three months S I U/s 120­B, 420, 467, 471 477A IPC r/w Section 13 (1) (d) r/w Sec. 13 (2) of P C Act, 1988 to all the convicts.

CC No.37/01 71/66 72

Convict Manoj Ghambir and Desh Deepak each are sentenced to undergo Three years RI along with fine of Rs. 10,000/­ ( Ten Thousand) I D three months S I for the substantive offence punishable U/s 420 IPC.

They are also sentenced to undergo Three years RI each along with fine of Rs. 10,000/­ ( Ten Thousand) I D three months S I for the substantive offence punishable U/s 467/ 471 IPC They are further sentenced to undergo Three years RI each along with fine of Rs. 10,000/­ (Ten Thousand) I D three months S I for the substantive offence punishable U/s Section 13 (1) (d) r/w Sec. 13 (2) of P C Act, 1988 .

All the sentences will run concurrently. A copy of judgment and this order on sentence be given to both the accused free of costs. Benefit of Section 428 Cr P C is given to both the accused. Ordered accordingly. File be consigned to RR.

ANNOUNCED IN OPEN COURT                     (V K MAHESHWARI)
TODAY ON 7.2.2011                          SPECIAL JUDGE: DELHI

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