Law: Criminal Procedure Code (V of 1898)

Section: 265K

Law: Financial Institutions (Recovery of Finances) Ordinance, 2001

Section: XLVI,20(1)(b),20(5)

Criminal Procedure Code (V of 1898)-------S. 265-K---Financial Institution (Recovery of Finances) Ordinance, (XLVI of 2011), Ss. 20(1)(b) & 20(5)---Fraudulent mis-representation or committing a breach of an obligation or representation made to a financial institution--Accused/customers were charged for removing 370 motorcycles which were pledged with the complainant against a loan amount, through duplicate/forged keys---Accused was acquitted under S.265-K, Cr.P.C---Validity---In the present case, the borrower/customer was a company and a body corporate, hence subsection (5) of S.20 of the Ordinance 2001 would be applicable, which clearly put a pre-condition of involvement of a Director or Officer, for deeming to be guilty of the offence and liable to prosecution and punishment---Case of the respondent before the Banking Court under S.265-K, Cr.P.C., was that, although accused was a Director of the customer/ borrower company, however even as per bank's claim and documents, he was neither involved in creation of the hypothecated goods, nor executed any Letter of Hypothecation, nor was ever involved in the alleged offence of removal of hypothecated goods, and therefore, subsection 5 of S.20 was fully applicable to his case---Appellant conceded that neither Letter of Hypothecation was signed by the respondent nor was there any allegation of his personal involvement in the said offence of removal of hypothecated goods and there was nothing on the record to establish otherwise--Thus, it appeared that the respondent had been able to make out a case for grant of his application under S.265-K,Cr.P.C.---However, the observations made in the impugned order passed by the Banking Court shall not be treated as a precedence in any proceedings, while dealing with the case of the appellant against the said customer company or its directors---Appeal was disposed of.Irslan Siddiq and 3 others v. The State and another 2005 CLD 1794 rel.Date of hearing: 12th March, 2025.JUDGMENTMUHAMMAD HASAN (AKBER), J.---By way of the instant appeal, the Appellant/bank has assailed the Order dated 05.03.2016 passed by the learned Banking Court No.II at Hyderabad, in Banking Criminal Complaint…