Suresh C. Singal & Ors. v. State of Gujarat & Ors.

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The Tax Publishers 2025 TaxPub(CL) 879 (SC) IN THE SUPREME COURT OF INDIA ABHAY S. OKA & AUGUSTINE GEORGE MASIH, JJ. Suresh C. Singal & Ors. v. State of Gujarat & Ors. Criminal Appeal No. 3862 of 2024 16 April, 2025 Appellant by: Bhadrish Raju, Adv., Mahesh Agarwal, Adv. Ankur Saigal, Adv., Kajal Dalal, Adv., Kaustubh Singh, Adv., Dhanesh R. Patel, Adv., E. C. Agrawala, AOR Respondent by: Aishwariya Bahti, A.S.G. Mr. Mukesh Kumar Maroria, AOR Kiran Suri, Adv., Mohan Prasad Gupta, Adv. Mr. V.v.v. Pattabhi Ram, Adv., Sarthak Karol, Adv., Satvika Thakur, Adv., Jagdish Chandra Solanki, Adv., Ravindra Kumar, Sr. Adv., Divya Roy, AOR Swati Ghildiyal, AOR Deepanwita Priyanka, Adv. Ms. Devyani Bhatt, Adv., Srujana Suman Mund, Adv JUDGMENT *Augustine George Masih, J.* The Appellants have challenged the Order dated 05-5-2017 passed by the learned Single Judge of the High Court of Gujarat in Special Criminal Application (Quashing) No.5629 of 2015, whereby a writ petition under Article 226 of the Constitution was preferred by the Appellants seeking quashing of FIR being RC No.13(E)/2008-CBI dated 8-12-2008 at Police Station, CBI, BS & FC, Mumbai as well as the charge sheet dated 26-5-2010 was dismissed. 2. The bare necessary facts in the present case are that between 1998-2005 Bank of Maharashtra sanctioned multiple credit facilities to the Appellants due to their strong financial standing. Beginning June 2005 onwards, the Appellant companies faced a financial crunch due to adverse market conditions, including the 2004 Surat floods, leading to the bank classifying their loans/credit facilities as Non-Performing Assets (hereinafter referred to as NPA). Bank of Maharashtra proceeded to file applications for recovery of the debt before the Debt Recovery Tribunal, Ahmedabad (hereinafter referred to as DRT). 3. During the pendency of these proceedings, Central Bureau of Investigation (hereinafter referred to as CBI) on the basis of reliable information proceeded to register the above-referred FIR against the Appellants, proforma Respondents 3 and 4 as well as the Branch Manager of the Bank of Maharashtra for offences punishable under section 420, 467, 468 and 471 read with 120B of the Indian Penal Code (hereinafter referred to as IPC) and under section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1988 (hereinafter referred to as PC Act). SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2025 TaxPub(CL) 879 (SC)

IN THE SUPREME COURT OF INDIA

ABHAY S. OKA & AUGUSTINE GEORGE MASIH, JJ.

Suresh C. Singal & Ors. v. State of Gujarat & Ors.

Criminal Appeal No. 3862 of 2024

16 April, 2025

Appellant by: Bhadrish Raju, Adv., Mahesh Agarwal, Adv. Ankur Saigal, Adv., Kajal Dalal, Adv., Kaustubh Singh, Adv., Dhanesh R. Patel, Adv., E. C. Agrawala, AOR

Respondent by: Aishwariya Bahti, A.S.G. Mr. Mukesh Kumar Maroria, AOR Kiran Suri, Adv., Mohan Prasad Gupta, Adv. Mr. V.v.v. Pattabhi Ram, Adv., Sarthak Karol, Adv., Satvika Thakur, Adv., Jagdish Chandra Solanki, Adv., Ravindra Kumar, Sr. Adv., Divya Roy, AOR Swati Ghildiyal, AOR Deepanwita Priyanka, Adv. Ms. Devyani Bhatt, Adv., Srujana Suman Mund, Adv

JUDGMENT

Augustine George Masih, J.

The Appellants have challenged the Order dated 05-5-2017 passed by the learned Single Judge of the High Court of Gujarat in Special Criminal Application (Quashing) No.5629 of 2015, whereby a writ petition under Article 226 of the Constitution was preferred by the Appellants seeking quashing of FIR being RC No.13(E)/2008-CBI dated 8-12-2008 at Police Station, CBI, BS & FC, Mumbai as well as the charge sheet dated 26-5-2010 was dismissed.

2. The bare necessary facts in the present case are that between 1998-2005 Bank of Maharashtra sanctioned multiple credit facilities to the Appellants due to their strong financial standing. Beginning June 2005 onwards, the Appellant companies faced a financial crunch due to adverse market conditions, including the 2004 Surat floods, leading to the bank classifying their loans/credit facilities as Non-Performing Assets (hereinafter referred to as NPA). Bank of Maharashtra proceeded to file applications for recovery of the debt before the Debt Recovery Tribunal, Ahmedabad (hereinafter referred to as DRT).

3. During the pendency of these proceedings, Central Bureau of Investigation (hereinafter referred to as CBI) on the basis of reliable information proceeded to register the above-referred FIR against the Appellants, proforma Respondents 3 and 4 as well as the Branch Manager of the Bank of Maharashtra for offences punishable under section 420, 467, 468 and 471 read with 120B of the Indian Penal Code (hereinafter referred to as IPC) and under section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1988 (hereinafter referred to as PC Act).