STATE THROUGH SPE & CBI, AP versus M. KRISHNA MOHAN AND ANR.

Citation: [2007] 11 S.C.R. 570 · Decided: 12-10-2007 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
B 
STATE THROUGH SPE & CBI, AP 
v. 
M. KRISHNA MOHAN AND ANR. 
OCTOBER 12, 2007 
[S.B. SINHA AND HARJIT SINGH BEDI, JJ.) 
Penal Code, 1860: 
c 
ss. 409, 420, 467, 477-A r/w 120-B-Forgeryandmisappropriation 
of bank loans-Bank Manager and Field Officer in conspiracy with 
each other sanctioned and disbursed loans in names of fictitious 
persons-Trial Court holding both guilty and sentencing them-
Acquittal by High Court-HELD: Prosecution has brought ample 
D material on record which led to only one conclusion that accused 
committed the offences-Exoneration of one of the accused in 
departmental inquiry initiated only against him having concluded 
before police investigation stated in the case, would be of no avail as 
Inquiry Officer did not have benefit of the evidence that was made 
E available in the criminal proceedings-Besides, the inquiry report was 
not brought on record and factum of exoneration in departmental 
proceedings was taken as a defence, it was for the accused to bring 
on record the relevant material, which was not done-High Court also 
erred in purporting to hold that specimen finger print and handwritings 
F could not have been taken from accused-ss. 5 and 6 of Identification 
of Prisoners Act, clearly provides for such a contingency-High Court 
completely misdirected itself in passing a judgment of acquittal-
Judgment of High Court set aside-Prevention of Corruption Act, 
1944-ss. 5(1) and 5(2)-Code of Criminal Procedure, 197 3-Appeal 
G against acquittal-Identification of Prisoners Act, 1920-ss. 5 and 6. 
Prevention of Corruption Act, 1947: 
s. 5(1) rlw s.5(2), proviso-Bank Manager and Field Officer 
forging loans in names of fictitious persons-Both held guilty by trial 
H 
570 
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ST A TE THROUGH SPE & CBI, AP v. M. KRISHNA 
571 
MOHAN 
court-Acquittal by High Court-HELD: Bank Manager completing A 
all formalities required to be complied with for grant of loan including 
obtaining appraisal report from Field Officer, sanction and 
disbursement of loan on date of filing of loan application itself-Entire 
prosecution relating to forgery and misappropriation having been 
attributed to the Manager, and he having used the appraisal reports B 
prepared by Field Officer, a case is made out to invoke the proviso 
appended to sub-s. (2) of s.5 in the case of Field Officer-Therefore, 
while upholding conviction and sentence awarded by trial court as 
against the Manager, sentence of rigorous imprisonment of three 
months is imposed on Field Officer-Penal Code, 1860-ss. 409, 420, C 
467 and 477-A r/w 120-B !PC 
Code of Criminal Procedure, 1973: 
Appeal against acquittal-Jurisdiction of appellate Court-
HELD: an appellate court, while entertaining an appeal against D 
acquittal, would be entitled to consider the evidence brought on record 
and arrive at its own conclusion-Interference with a judgment of 
acquittal may not be made when two views are possible to be taken 
but when only one view is possible to be taken, appellate court would 
not hesitate to interfere with judgment of acquittal-Jn the instant case E 
no two views are possible to be taken-Accused were rightly held guilty 
of the offences charged-High Court misdirected itself in passing 
judgment of acquittal-Judgment of High Court set aside-Penal 
Code, 1860-ss. 409, 420, 467, 477-A rlw s.120-B-Prevention of 
Corruption Act, 1947-ss. 5(1), (2). 
F 
RespondentA-1 and respondent A-2, whowereManagerandField 
Officer respectively of the appellant Bank, were prosecuted under ss. 
409, 420, 467 and 477-A read with s.120-B IPC and s.5 read with s.5(2) 
of the Prevention of Corruption Act, 1947. The allegations against them G 
were that during the period 7.12.1984to14.8.1986, they conspired with 
each other in matter of sanctioning and disbursing 6 Crop Loans of 
Rs.5000/- each in the names of fictitious persons by forging signatures 
and thumb impressions of proposed borrowers in documents resulting 
H 
572 
SUPREME COURT REPORTS 
[2007] 11 S.C.R. 
A in misappropriation of the proceeds ofRs.30,000/-. The trial court held 
f 
both the accused guilty of the offences charged and sentenced both of 
them to rigorous imprisonment for six moths. It rejected the plea of 
respondent A-2 that in view of the departmental procee4~1,1g~ against 
him resulting in his exoneration he was entitled to be acquitted. On 
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B appeal, the High Court acquitted the accused observing, i'!~e[q!ia, ~hat 
the procedure adopted for obtaining

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