STATE OF ANDHRA PRADESH versus Y. BASAVADEVUDU AND ANR.

Citation: [1992] 2 S.C.R. 344 · Decided: 26-03-1992 · Supreme Court of India · Bench: KULDIP SINGH · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
STATE OF ANDHRA PRADESH 
,4._ ,..._ 
v. 
Y. BASAVADEVUDUAND ANR. 
MARCH 26, 1992 
B 
[KULDIP SINGH AND N.M. KASLIWAL, JJ.) 
~ 
Criminal Law : 
Indian Penal Code, 1860 : 
c 
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Sections 409, 467, 471 and 477-A-Embezzlement-Encashment of 
> 
fake RBI Demand Drafts in the name of fictitious persons-Falsification of 
accounts-Connivance of Sub-Treasury Officer with other employees-Trial 
~ 
Court holding accused guilty of offences charged-High Court acquitting 
accused by giving benefit of doubt-Whether justified-Held: prosecution had 
D discharged its burden of establishing charges levelled against accused beyond 
reasonable doubt by unimpeaching oral and documentary evidence-Duty of 
accused to produce defence evidence to establish their innocence especially 
when facts relating to payment of huge amount without receiving any advice 
from R.B.I. and names and identity of persons who had identified the payees 
E 
were within their knowledge-Evidence Act, 1872 : Section 106. 
Respondents Nos. 1and2 and PW. 18 were working as Sub-Treasury 
...._ "' 
Officer, Shroff and Upper Division Account-cum-Double Lock Officer 
respectively in a non-Banking Treasury. The State Government ordered 
the conversion of the said Treasury into a Banking Treasury by handing 
F 
over cash business to a local Bank from a particular date. However, on the 
report of respondent No. 1 that the cash chest was not working as the key 
was stuck-up in the Reserve Bank of India chest and it was not possible 
to hand over the cash business on the date ordered by the Government, 
;r:. 
the State Government fixed another date, and the conversion materialised, 
G on the revised date, about a month after the original date. 
After sometime, the Accountant General and also the regional office 
of the Reserve Bank of India detected that seven demand drafts alleged to 
have been issued by the Reserve Bank of India were encashed In the 
Sub-Treasury on the last two days of its being handed over. It was found 
~-
H that no such demand drafts had at all been issued by the Reserve Bank of 
344 
STATE v. Y. BASAVADEVUDU 
345 
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India for being encashed at the Sub-Treasury in question, and that al-
A 
together different drafts were issued relating to other places out'iide the 
State, and except the serial numbers, all other particulars, namely, the 
date, amount, name of the payee etc. were not at all tallying with the 
payment certificate sent by respondent No. 1, the then Sub-Treasury 
Officer. It was· found that there was an embezzlement to the tune of B 
Rs. 1;22,500 out of the cash of the Sub-Treasury and all entries with regard 
-4.. 
to the payment of such amount and the signatures of the payees in token 
of receipts of money were all fake and forged by the accused persons. 
PW.18 was granted pardon and declared an approver by the District 
-
Magistrate. 
c 
"" 
The two respondents were charged for offences under Sections 409, 
~ 467, 471 and 477-A l.P.C. The prosecution examined 27 witnesses and 
produced 113 documents in support of its case. The respondents denied 
the charges but did not lead any eYidence in defence. 
D 
The trial court held that the prosecution had proved beyond all 
reasonable doubt that the two respondents and PW.18, the approver, 
together made falsification of the accounts by writing false entries in the 
relevant registers as if some payments were made on the two dates in 
question to the fictitious persons whose names were mentioned in the E 
payment register and other registers, and that both the accused persons 
.. >-
and PW.18 connived in making false entries with dishonest intention of 
covering up of misappropriation of the public funds committed by them 
to the tune of Rs. 1,22,500. Accordingly it found that the respondent were 
guilty of the offences under Sections 409, 467, 471 and 477-A I.P.C. It 
acquitted the approver of all the charges lev.elled against him. 
F 
On appeal, the High Court acquitted the respondents on the ground 
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that the prosecution had failed to prove the case beyond reasonable doubt, 
and that though a huge amount had been embezzled, nevertheless it would 
not be proper to convict the accused when doubt was cast and benefit of G 
doubt had to be given to the accused. 
Allowing the appeals of the State, this Court, 
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HELD : 1.1 The High Court totally misdirected itself and did not go 
deep into the matter, nor analysed the clinching oral and documentary H 
346 
SUPREME COURT REPORTS 
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