Kerala High Court allows CA alleged of dishonestly preparing Loan Application in Name of Non-Existing Company to file Discharge Application [Read Order]

Chartered Accountant - Kerala High Court - CA - dishonestly preparing- loan application - non-existing company - Taxscan

The Kerala High Court allowed the CA alleged of dishonestly preparing loan applications in the name of a non-existing company to file a Discharge Application.

The accused, Thomas Cherian being a Chartered Accountant during 2002-2003 dishonestly prepared the loan application for Rs.200 lakhs as LC and CC facilities in the name of M/s. Corromondal Footwears India (P) Ltd, a non-existing company and got forged the signatures of Directors through his employee on conspiracy and other accused persons and dishonestly offered 54.67 acres of land situated at Ambasamundiram, properties of his in-laws Shri George Dominic, Smt. Elima George, Dominic George, and Thomas Martin George as collateral security for availing the said facility with knowledge that the said property would worth below 2 lakhs and got prepared an exorbitant valuation report through Sri. K.S.Ramakrishna Iyyer in conspiracy with other accused and induced the bank to sanction and disburse the loan amount to A-2 and A-4 in the name of M/s.Corromondal Footwears Pvt.Ltd., thereby caused a wrongful loss of Rs.3,68,73,385/- to SBI and thus accused committed offense punishable u/s 420 IPC

The single-judge bench of Justice R. Narayana Pisharadi granted the petitioners an opportunity to file an application for discharge before the trial court. Granting such an opportunity can be done only after setting aside the charge already framed against them by the trial court.

The charge framed against the accused by the trial court, as far as it relates to the petitioners alone, is set aside. The petitioners are granted liberty to file an application for discharge before the trial court within a period of one month from today. If such an application is filed by them, the trial court shall dispose of it within a period of one month from the date of filing it. If the petitioners fail to file any application for discharge before the trial court within the aforesaid period, the charge framed against them by the trial court shall stand restored and it would then be at liberty to proceed with the trial of the case,” the court said.

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Counsel for Appellant:   C.S.MANU SRI.S.K.PREMRAJ SMT.V.SARITHA

Counsel for Respondent:   ASG-SRI.P.VIJAYAKUMAR


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