MANORANJAN DAS versus STATE OF JHARKHAND

Citation: [2004] SUPP. 1 S.C.R. 601 · Decided: 21-04-2004 · Supreme Court of India · Bench: K.G. BALAKRISHNAN, B.N. SRIKRISHNA · Disposal: Appeal(s) allowed

Judgment (excerpt)

--t 
MANORANJAN DAS 
A 
v. 
ST ATE OF JHARKHAND 
APRIL 21, 2004 
[K.G. BALAKRISHNAN AND B.N. SRIKRISHNA, JJ.] 
B 
Penal Code, 1860: 
Ss. 420//09-Abetting offence of cheating-An account-holder 
introducing a person to bank for opening an account-The person so C 
introduced opening a current account with the bank and withdrawing certain 
amount from the bank by presenting fake bank drafts-Prosecution of 
introducer-Conviction and sentence by trial court u/s 420--Appellate court 
converting the conviction into one u/s 4201109-Held, trial court as well as 
the appellate court committed serious error in finding the introducer guilty D 
of offence u/s 4201109-He had introduced the said person to tlie bank only 
for opening an account and that by itself does not spell out any fraud or 
cheating-Bank passed the cheque at a time when the new account-holder 
had no sufficient money in his credit, and acted on the bogus drafts given 
by him for which the introducer who had introduced him to bank months 
back cannot be made liable for abetting offence of cheating-There is nothing E 
on record to show that the introducer was in any way related to the fraud 
committe4 by the new account-holder on the bank-Evidence of witnesses 
also does not show any complicity by the introducer in committing any act 
of cheating-Judgments of courts below set aside and introducer acquitted 
of charge ulss. 4201109-Bank!Banking-Fraud committed by account-
holder-Liability of introducer. 
F 
CRIMINAL APPELLATE JURISDICTION : Criminal Appeal No. 650 
of 1998. 
From the Judgment and Order dated 17.10.96 of the Patna High Court 
in Crl. Revision No. 25/90(R). 
Deba Prasad Mukherjee for the Appellant. 
G 
Krishnanand Pandeya and Gautam Prasad for the Respondent. 
The following Order of the Court was delivered : 
The appellant herein was tried for offences punishable under Sections 
601 
H 
602 
SUPREME COURT REPORTS [2004] SUPP. I S.C.R. 
A 419/420/468/471 IPC by the Judicial Magistrate, 1st Class, Jamshedpur, 
Singhbhum. He was found guilty by the Magistrate for the offence punishable 
under Section 420 IPC and was sentenced to undergo imprisonment for a 
period of three years. The appellant filed an appeal before the Sessions Court 
challenging his conviction and sentence. The appellate Court converted the 
B conviction of the appellant from Section 420 IPC to a conviction under 
Sections 420/l 09 IPC, however the sentence was. maintained and appellant 
filed a revision before the High Court, though his revision petition was 
dismissed, the sentence of imprisonment was reduced to a period of six • 
months. Aggrieved by the same, the present appeal is filed. 
The appellant was a businessman in Jamshedpur. On 26-5-1972, one 
C Loknath Acharya wanted to ?pen a current account with the Central Bank at 
Jamshedpur. The appellant being holder of a current account in the same 
bank, Loknath Acharya sought assistance of appellant for introduction to the 
said bank. Appellant is said to have signed a form by which he purported to 
have introduced Loknath Acharya to the B11nk. Loknath Acharya continued 
D to operate his current account and on 30.10.1972. He presented three demand 
drafts, one for Rs. 32,100, second for Rs. 78,600 and another for Rs. 90,300. 
After the presentation of these demand drafts the said Loknath Acharya by 
a self cheque withdrew Rs. 27,000. Later, he presented another self cheque for 
Rs. 1,40,000 to be withdrawn from the Bank. Though the cheque was passed, 
the Manager smelt a rat and directed the officer incharge of the Current 
E Deposit Account to verify the drafts. The accountant incharge found certain 
irregularities and he suspected the genuineness of the drafts. The Manager 
stopped the payment of cheque of Rs. 1,40,000 and sent a telegram to the 
Srinagar branch of this Bank wherefrom these drafts were issued. Reply was 
received from the Srinagar branch that no such drafts were ever issued. The 
F Manager searched for Loknath Acharya and it seems that by the time he 
disappeared. The Manager filed a complaint before the police station alleging 
that Loknath Acharya and the appellant who introduced him to the Bank for 
starti!lg the current account and also one M.B. Chowdhury, a bank employee 
as parties to a fraud and cheating and it was alleged that money was illegally 
withdrawn form the Bank. On the basis of the complaint the police registered 
G a case under Section 420 IPC and other allied offences against theses three 

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