PATNA HIGH COURT ISSUES JUDGEMENT ON CANARA BANK THROUGH ITS GENERAL MANAGER AND OTHER V/S THE UNION OF INDIA AND OTHER

PATNA, India, Aug. 4 -- Patna High Court issued the following judgment on July 15:

1. The Writ petition is filed to command the respondent authorities to recall the order dated 04.07.2016, contained in Letter No. 1220 where withdrawals from Account No. 2310201010700 held in the name of KPC Medical College has been withheld. Further, to direct the respondent authorities to accord permission to the petitioner - Canara Bank to utilize the money, so withheld in the aforesaid current account, for settlement of the claims of the persons defrauded by the functionaries of the said KPC Medical College and Hospital, Jadavpur. Further, the respondent authorities be directed to return the money seized from the said fraudsters, if any, to the petitioner-Canara Bank so that the same could be adjusted against the payments already made to the claimants who had been defrauded.

2. The brief facts culled out of the Writ petition are that the Petitioner No. 1/Canara Bank, represented by its General Manager, is a corporate body constituted under the Banking Companies (Acquisition and Transfer of Undertakings Act, 1970). A current account bearing No. 2310201010700 in the name of KPC Medical College and Hospital, Jadavpur was opened at Gopalganj branch of the petitionerBank. Thereafter, cheques of different banks issued in favour of said KPC Medical College and Hospital, Jadavpur were credited in the said current account through clearing. The fraudsters have withdrawn an amount of Rs. 1.65 crore from the said current account, out of which three cash withdrawals to a tune of Rs. 60,25,000/- were made and four RTGS transactions amounting to Rs. 1,05,00,000/- were done in the account of one M/s Aastha Constructions maintained with Central Bank of India, Freser Road Branch, Patna.

3. An F.I.R. was lodged vide, Case No. 83 of 2014 dated 15.07.2014, on the file of Bidhan Nagar Police Station (West Bengal) for the offences punishable u/s 419, 420 and 468 of the Indian Penal Code for the aforesaid fraud. The Bidhan Nagar Police Station sought details of the accounts and CCTV Footage during transaction in the said current account and a notice u/s 91 of Cr.P.C. was issued to petitioner No. 3(Branch Manager, Canara Bank) on 24.06.2014. The aforesaid fraud has been reported by the Gopalganj Branch of the Canara Bank to the Recovery Legal and Fraud Prevention Wing, Head Office, Bangalore on 24.07.2014.

The rest of the document can be viewed at https://patnahighcourt.gov.in/viewjudgment/MTUjMTAxMjcjMjAxNyMxI04=-4NJfAmyDq0Q=

Disclaimer: Curated by HT Syndication.