Disposed

Shamshad Ahmed v. State of U.P. and 7 Others

Allahabad HC3 Jul 2024WRIC/16343/2024

Case brief

AI extract

What is this about?

The bench examined a writ petition challenging a recovery citation issued by a Bank due to alleged misuse of blank cheques. After the Bank conducted an inquiry regarding procedural lapses and alleged fraud, the impugned recovery was withdrawn. The court held that no further order was necessary and consigned the petition to the record.

What did the court decide?

Impugned recovery citation withdrawn by respondent-Bank; no further order issued; petition consigned to record.

Shamshad Ahmed vs State of U.P. and 7 Others — Banking and Recovery | Allahabad HC (2024)

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Neutral Citation No. - 2024:AHC:112944-DB

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Court No. - 21

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Case :- WRIT - C No. - 16343 of 2024 Petitioner :- Shamshad Ahmed Respondent :- State Of U.P. And 7 Others Counsel for Petitioner :- Jeet Bahadur Singh Counsel for Respondent :- C.S.C.,Dharmendra Vaish

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Hon'ble Manoj Kumar Gupta,J. Hon'ble Manish Kumar Nigam,J.

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Compliance affidavit filed by the respondent - Bank in pursuance of our previous order, is taken on record.

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The petitioner has challenged the Recovery Citation dated 31.12.2022, issued by respondent No.3 for recovery of dues of the respondent - Bank.

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On 16.5.2024, the following order was passed :-

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"1. The case of the petitioner is that the blank cheques obtained from him at the time of opening of account have been misused by the private respondents in collusion with the Branch Manager. The petitioner has filed the statement of account to show that respondent no.6 got a huge sum transferred to his account. It is submitted that the fraud was committed by the private respondents upon the petitioner by getting their mobile number registered in the bank account of the petitioner so that the message relating to withdrawal of the amount was not received by the petitioner and he could not stop the payment.

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2. It is further submitted that the petitioner also filed complaint before the Police, but his complaint was not registered. He therefore filed an application under Section 156(3) Cr.P.C. for registration of the F.I.R. He further submits that the complaint filed by the petitioner before the Branch Manager has been rejected solely on the ground that the cheques were signed by the petitioner, without considering the fact that the blank cheques obtained from him at the time of opening of account had been misused. He further submits that no inquiry was got conducted in the matter against the bank officials and the private respondents.

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3. Having regard to the serious nature of allegations and alleged collusion between the Branch Manager and the private respondents, we require the General Manager of Punjab National Bank to hold an inquiry and apprise the Court of the outcome thereof by filing his personal affidavit by the next date.

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4. Put up as fresh on 3.7.2024.

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5. Until the next date of listing, the impugned recovery citation dated 31.12.2022 shall remain in abeyance. "

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Thereafter, on 3.7.2024, another order was passed which is as follows :-

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"1. Sri Dharmendra Vaish, learned counsel for the respondent-Bank, states that in the inquiry held by the Bank, it had transpired that fraud was committed. The funds were transferred from the account to individual account of Varun Kumar (respondent no. 6), without carrying out due diligence. No mobile number was entered in the account for SMS alerts. He submits that the Vivek Sharma (the previous Branch Manager) was proceeded against and major penalty has been imposed on him. Now in view of supplementary inquiry report, other officers found guilty would also be proceeded against.

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2. We find that the so-called major penalty awarded to the Branch Manager who was found guilty of fraud, is stoppage of one increment only.

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3. We require the Circle Head, Punjab National Bank, Aligarh to examine the entire issue and file his personal affidavit, detailing the measures he proposes to take in the matter.

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5. List as fresh on 15.7.2024.

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6. Interim order is extended till the next date of listing."

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In the compliance affidavit, the Circle Head, Punjab National Bank, Circle Office, District - Aligarh has stated that the impugned recovery has been withdrawn. He has also stated that a show cause notice has been issued to Vivek Sharma, Senior Manager of the Bank, who in the preliminary inquiry was found guilty of procedural lapses.

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Shri Dharmendra Vaish, Counsel for the petitioner submits that the respondent - Bank will take disciplinary action against the guilty officials, in accordance with law.

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Having regard to the fact that the impugned recovery has been withdrawn, no further order is required to be issued.

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In view of the above, the petition is consigned to record.

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Order Date :- 15.7.2024 Rishabh

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[Manish Kumar Nigam, J.] [Manoj Kumar Gupta, J.]

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Digitally signed by :- RISHABH KUMAR High Court of Judicature at Allahabad

Shamshad Ahmed v. State of U.P. and 7 Others

Case brief

What is this about?

What did the court decide?

Shamshad Ahmed v. State of U.P. and 7 Others

Case brief

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