Allowed

Kurian Pallathu v. State of Kerala

Kerala HC2 Nov 2022Bail Appl./8466/2022

Case brief

AI extract

What is this about?

High Court of Kerala allowed three connected bail applications filed by bank officials accused of cheating and corruption. The court found the mens rea doubtful and directed the investigating officer to release petitioners on bail subject to appearance and sureties.

What did the court decide?

Petitioners granted anticipatory bail; directed to appear for interrogation on 08.11.2022 and report weekly; bond Rs.50,000 with two sureties.

Kurian Pallathu Vs State of Kerala — Corruption | Kerala HC (2022)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE K. BABU

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WEDNESDAY, THE 2^ND DAY OF NOVEMBER 2022 / 11TH KARTHIKA,

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1944

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BAIL APPL. NO. 8473 OF 2022

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(CRIME NO.58/CB/ALP/17 OF CRIME BRANCH ALAPPUZHA, ALAPPUZHA DISTRICT)

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PETITIONERS/ACCUSED NOS.7 AND 12:

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1 P.MOHANAN, AGED 75 YEARS, S/O PADMANABHAN NAIR, ARCHANA WEST FORT, MAVELIKARA, ALAPPUZHA DISTRICT, PIN-690101.

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2 P.K MAHENDRAN, AGED 77 YEARS, S/O NEELAKANDAN UPPUKARANPARAMBIL, PONNARAMTHOTTAM, MAVELIKKARA NOW RESIDING AT NIKASH BHAVAN, EEREZHA NORTH, WARD NO 5 CHETTIKULANGARA PANCHAYATH, MAVELIKKARA, ALAPPUZHA DISTRICT, PIN-690106, BY ADVS. M.SUNILKUMAR S.SANDEEP (S-3458) NIDHEESH P. RAJEESH V.R. RAKESH R.

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RESPONDENT/COMPLAINANT:

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STATE OF KERALA, REPRESENTED BY THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM, PIN - 682 031.

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BY ADV. SMT. REKHA.S (SR.P.P) THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 02.11.2022, ALONG WITH Bail Appl..8466/2022, 8469/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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B.A Nos.8466, 8469 & 8473 of 2022

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE K. BABU

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WEDNESDAY, THE 2^ND DAY OF NOVEMBER 2022 / 11TH KARTHIKA,

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1944

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BAIL APPL. NO. 8466 OF 2022

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(CRIME NO.58/CB/ALP/17 OF CRIME BRANCH ALAPPUZHA, ALAPPUZHA DISTRICT)

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PETITIONERS/ACCUSED:

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1 KURIAN PALLATHU, AGED 59 YEARS, S/O EAPAN CHERIAN, PALLATH GRACE COTTAGE, KANDIYOOR, MAVELIKKARA TALUK, ALAPPUZHA – 690103

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2 SUJA JOSHUA, AGED 56 YEARS, W/O. JOSHUA, OTTA THENGIL HOUSE, CHENNITHALA SOUTH, MAVELIKKARA, ALAPPUZHA PIN - 689622 3 AMBIKA DEVI, AGED 52 YEARS, W/O. SUNIL, THONDATHIL HOUSE, WEST FORT, MAVELIKKARA, ALAPPUZHA - 690101. BY ADV RASHEED C.NOORANAD

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RESPONDENT/STATE AND COMPLAINANT:

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1 STATE OF KERALA REP BY. PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM-682031 2 CRIME BRANCH OFFICER CRIME BRANCH OFFICE, ALAPPUZHA - 688001

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THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 02.11.2022, ALONG WITH Bail Appl..8473/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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B.A Nos.8466, 8469 & 8473 of 2022

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE K. BABU

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WEDNESDAY, THE 2^ND DAY OF NOVEMBER 2022 / 11TH KARTHIKA,

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1944

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BAIL APPL. NO. 8469 OF 2022

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(CRIME NO.58/CB/ALP/17 OF CRIME BRANCH ALAPPUZHA, ALAPPUZHA

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DISTRICT)

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CR.NO.58/CR/EOW-1KLM/17 OF THE PATHANAMTHITTA CBCID

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ECONOMIC OFFENCES WING-I

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MAVELIKKARA POLICE STATION CR.134/17

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PETITIONERS/ACCUSED NOS.8,10,13 AND 16:

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1 KALLUMALA RAJAN,

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AGED 64 YEARS, SON OF ACHUTHAN PILLAI,KRISHNA VILASATH HOUSE,KOTTAKKAKAM,MAVELIKARA VILLAGE,MAVELIKARA P.O.,ALAPPUZHA , PIN - 690101

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2 MUTHUSWAMI, AGED 72 YEARS, SON OF DAMODARAN ACHARI,ASARIPARAMBIL HOUSE,KOTTAKKAKAM,MAVELIKARA VILLAGE,MAVELIKARA P.O,NOW RESIDING AT SREERAGAM HOUSE,CHETTIKULANGARA MURI,KANNAMANGALAM VILLAGE, MAVELIKARA TALUK, ALAPPUZHA DISTRICT. 3 ABHILASH S, AGED 40 YEARS, SON OF T SANKARAN,THOONKINATH HOUSE,CHENNITHALA SOUTH MURI,THRIPPERUNTHURA VILLAGE,MAVELIKARA TALUK,ALAPPUZHA, PIN - 690105 4 KUNJUMOL RAJU@ ALEYAMMA ABRAHAM, AGED 62 YEARS, WIFE OF LATE A.V.RAJU,KEEPADAYIL RAJ BHAVAN HOUSE, KOTTARKAKAVU,MAVELIKARA,ALAPPUZHA, PIN - 690101 BY ADVS. T.S.HARIKUMAR P.B.SAHASRANAMAN

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B.A Nos.8466, 8469 & 8473 of 2022

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RESPONDENT/STATE:

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STATE OF KERALA, REPRESENTED BY ITS PUBLIC PROSECUTOR, HIGH COURT OF KERALA,COCHIN, PIN - 682031

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THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 02.11.2022, ALONG WITH Bail Appl..8473/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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B.A Nos.8466, 8469 & 8473 of 2022

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K.BABU, J.

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B.A Nos.8466, 8469 & 8473 of 2022

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Dated this the 2^nd day of November, 2022

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COMMON ORDER

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These applications are filed under Section 438 of the Code of

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Criminal Procedure.

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The matter relates to Crime No.58/CB/ALP/17 registered by the Crime Branch, Alappuzha against the officials of Mavelikkara

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Taluk Co-operative Bank Limited and the President and the Board of Directors of the bank.

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The petitioners are Accused Nos.7 to 10 and 12 to 16.

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The prosecution case is that the petitioners along with the

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other accused hatched a criminal conspiracy and cheated the Mavelikkara Taluk Co-operative Bank Limited and the depositors

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with the aid of the Secretary, the other staff members of the Bank

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and one Sri.V.K.Prasad (A17), who installed banking software at the

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bank, and thereby manipulated and fabricated documents and

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computer records maintained at the bank. The petitioners and the

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B.A Nos.8466, 8469 & 8473 of 2022

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other accused obtained wrongful gain to the tune of Rs.34,80,64,025/- causing wrongful loss to the bank.

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Heard Sri. Rasheed.C.Nooranad, the learned counsel appearing for the petitioners in B.A No.8466/2022, Sri. P.B.Sahasranaman, the learned counsel appearing for the petitioners in B.A No.8469/2022, Sri.M.Sunil Kumar, the learned counsel appearing for the petitioners in B.A No.8473/2022 and Smt. Rekha.S, the learned Senior Public Prosecutor appearing for the respondents.

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The learned counsel for the petitioners submitted that the petitioners have absolutely no role in the allegations of the malpractices, forgery and misappropriation levelled by the prosecution. The learned counsel submitted that the Board of Directors of the bank detected misappropriation and malpractices in the bank and promptly informed the same to the Police authorities. It is also submitted that on getting reliable information that malpractices and misappropriation were committed by the staff of the Co-operative society, the Board of Directors intervened and constituted a special committee consisting of the officials of the

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B.A Nos.8466, 8469 & 8473 of 2022

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other branches of the bank to enquire into the allegations. The Board Directors of the bank were also members of the committee. It is contended that the special committee headed by the Board of Directors found misappropriation of funds and malpractices done by accused Nos.1 to 3, who were the officials of the bank. The learned counsel for the petitioners submitted that immediately on realising the fact that misappropriation was done by the staff of the bank, the President of the committee, for and on behalf of the Director Board, filed a complaint to the Superintendent of Police, Alappuzha and the Inspector of Police, Mavelikkara Police Station. The petitioners relied on the copies of the complaints submitted before the Police and the acknowledgement evidencing receipt of the same by the Police authorities concerned.

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The learned Senior Public Prosecutor opposed the bail plea of the petitioners. The learned Senior Public Prosecutor submitted that the investigation conducted by the Crime Branch revealed the complicity of the petitioners in the offences alleged. The learned Senior Public Prosecutor submitted a report prepared by the Deputy Superintendent of Police-I, Crime Branch, Alappuzha in support of

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B.A Nos.8466, 8469 & 8473 of 2022

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her contentions. The learned Senior Public Prosecutor countered and submitted that the Concurrent Auditor of the Mavelikkara Taluk Co-operative Bank Limited detected the malpractices and irregularities in the year 2015. It is also submitted that the crime, which was originally registered by the Mavelikkara Police was based on the complaint of the Joint Registrar of Co-operative Societies. The learned Senior Public Prosecutor further submitted that the custodial interrogation of the petitioners is required.

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Originally, the crime was registered by the Mavelikkara Police as Crime No.134/2017. As per order dated 01.03.2017 of the State Police Chief, the investigation of the case was handed over to the CB CID and the present crime was registered. The offences alleged against the petitioners and the other accused are punishable under Sections 406, 408, 409, 417, 420, 465, 468, 471, 120B and 34 of IPC, Section 65 of IT Act, Section 13(2) read with Section 13(1)(d) of Prevention of Corruption Act, 1988 and Section 94(8) of Kerala Cooperative Societies Act, 1969.

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The specific case of the petitioners is that they had no involvement in the allegations levelled by the prosecution.

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B.A Nos.8466, 8469 & 8473 of 2022

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According to the petitioners, the Secretary of the Mavelikkara Cooperative Bank Limited, the Manager of the branch concerned and the computer operator, who are the principal accused in this case, committed the offences alleged. It is also submitted that the petitioners had only supervisory role in the functioning of the bank. The learned counsel for the petitioners submitted that the prosecution has not placed any materials to show the specific involvement of the petitioners in the transactions resulted in misappropriation and malpractices. On a perusal of the case diary it is alleged that the President of the bank abetted the commission of the offences by accused Nos.1 to 3.

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Relying on the report of the Vigilance Enquiry conducted by the Vigilance Wing of the Co-operative Department, the learned counsel for the petitioners submitted that the only allegation against the petitioners is that there is dereliction of duty on the part of the petitioners in conducting periodic inspection in the entire transactions taken place in the bank during the relevant period. Accused Nos.1 to 5 were arrested during the period 2017-218 and accused No.17 was arrested in the year 2022. The Investigating

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B.A Nos.8466, 8469 & 8473 of 2022

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Officer reported that he had collected 2746 documents relating to the malpractices alleged. It is further reported that the Investigating agency examined 480 witnesses, including the depositors, officials of the Co-operative department and other officials of the bank. It is also stated in the report submitted by the Investigating agency that the computer hard discs of the server computer of the Thazhakkara branch were also seized and produced before the jurisdictional Court. In the report, the Investigating Officer has submitted that during the course of investigation the involvement of then members of the Director Board is revealed.

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The Investigating officer highlighted the role of the petitioners in the alleged crime as follows:

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“(i) It is the duty, right and responsibility of the petitioners as the Board members of the Mavelikkara Taluk Co-operative Bank to protect the assets, money and records and also to monitor the activities of the staff. They did not conduct inspections and evaluate the performance of the Thazhakkara branch of the bank.

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(ii) They failed to monitor or evaluate the activities of the staff of Thazhakkra Branch.

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(iii) While the staff members of the other 9 branches of the bank were transferred periodically, the staff members of Thazhakkara Branch were allowed to continue there for a period of 11 years. This is the major cause of misappropriation at the Thazhakkara Branch.

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B.A Nos.8466, 8469 & 8473 of 2022

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(iv) The Board members failed to inspect/evaluate the collateral securities such as land documents, gold etc on the loans/MDS given by the Thazhakkara branch of the bank by physical verification.

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(v) During the Board meetings, the Board members approved the Monthly Receipts & Disbursement Statements of the bank. They failed to conduct enquiry about non working of online system and CCTV of the Thazhakkara branch.”

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The learned counsel for the petitioners contended that the

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mens rea of the petitioners in the commission of the alleged offences is not established by the prosecution.

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I have perused the case diary. On analysis of the entire materials placed before the Court, this Court is of the view that the petitioners could establish a prima facie case for getting the benefits contained in Section 438 Cr.P.C as the mens rea of the petitioners in the commission of the alleged offences is doubtful.

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In the result, the Bail Applications are allowed as follows:

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(a) The petitioners are directed to appear before the

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DySP, Crime Branch, Alappuzha on 08.11.2022 for interrogation.

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(b) The Investigating Officer (DySP, Alappuzha) is directed to release the petitioners on bail in the

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event of their arrest, on their executing bond for

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B.A Nos.8466, 8469 & 8473 of 2022

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Rs.50,000/- (Rupees fifty thousand only), each with

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two solvent sureties each for the like sum.

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(c) The petitioners shall continue to appear before the Investigating Officer on all Tuesdays between 10 A.M. and 11 A.M. for a period of three months or till the final report is filed, whichever is earlier.

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(d) The petitioners shall not leave India without the permission of the jurisdictional Magistrate.

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(e) The petitioners shall not try to influence the prosecution witnesses or attempt to tamper with

the evidence.

K.BABU, JUDGE

KAS

B.A Nos.8466, 8469 & 8473 of 2022

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APPENDIX OF BAIL APPL. 8466/2022

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PETITIONER ANNEXURES Annexure1 THE TRUE COPY OF THE COMMON ORDER IN CRL MP NO. 13/2022 DATED 17.03.2022 Annexure2 THE TRUE COPY OF THE RELEVANT PAGES IN THE ENQUIRY REPORT SHOWING THE NAMES OF THESE PETITIONERS AS WITNESSES

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B.A Nos.8466, 8469 & 8473 of 2022

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APPENDIX OF BAIL APPL. 8469/2022

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PETITIONER ANNEXURES

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Annexure A. 1	THE TRUE PHOTOSTAT COPY OF THE COMMON ORDER IN CRL.M.P.NO.10/2022 AND IN THE CONNECTED CASE OF THE ENQUIRY COMMISSIONER & SPECIAL JUDGE, THIRUVANANTHAPURAM, DATED 17-03-2022
Annexure A.2	THE TRUE PHOTOSTAT COPY OF THE MEMO DATED 15-10-2022 PRODUCED IN CRL.M.P.NO.289 OF 2022
Annexure A.3	THE TRUE PHOTOSTAT COPY OF THE MEMO DATED 15-10-2022 PRODUCED IN CRL.M.P.NO.286 OF 2022
Annexure A.4	THE TRUE PHOTOSTAT COPY OF THE NOTICE UNDER SECTION 41A OF CR.P.C. DATED 06- 10-2022 ISSUED TO THE 1ST PETITIONER
Annexure A.5	THE TRUE PHOTOSTAT COPY OF THE NOTICE UNDER SECTION 41A OF CR.P.C. DATED 06- 10-2022 ISSUED TO THE 2ND PETITIONER
Annexure A.6	THE TRUE PHOTOSTAT COPY OF THE NOTICE UNDER SECTION 41A OF CR.P.C. DATED 06- 10-2022 ISSUED TO THE 2ND PETITIONER
Annexure A.7	THE TRUE PHOTOSTAT COPY OF THE NOTICE UNDER SECTION 41A OF CR.P.C. DATED 06- 10-2022 ISSUED TO THE 4TH PETITIONER

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B.A Nos.8466, 8469 & 8473 of 2022

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APPENDIX OF BAIL APPL. 8473/2022

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PETITIONER ANNEXURES

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Annexure A	TRUE COPY OF THE COMMON ORDER IN CRL.M.P NO 10/2022,11/2022,12/2022,13/2022 DATED 17.03.2022 BY THE COURT OF ENQUIRY COMMISSIONER AND SPECIAL JUDGE, KOTTAYAM
Annexure B	TRUE COPY OF THE NOTICE ISSUED BY THE INVESTIGATING OFFICER TO THE FIRST PETITIONER U/S 41(A) OF THE CRP.C
Annexure C	TRUE COPY OF THE NOTICE ISSUED BY THE INVESTIGATING OFFICER TO THE SECOND PETITIONER U/S 41(A) OF CRP.C
Annexure D	TRUE COPY OF THE COMMUNICATION GIVEN BY THE FIRST PETITIONER TO THE INVESTIGATING OFFICER DATED 13.10.2022
Annexure E	TRUE COPY OF THE COMMUNICATION GIVEN BY THE SECOND PETITIONER TO THE INVESTIGATING OFFICER DATED 13.10.2022
Annexure F	TRUE COPY OF THE MEMO FILED BY THE COUNSEL FOR THE PETITIONERS IN CRL.M.P NO 287/2022 BEFORE THE COURT OF ENQUIRY COMMISSIONER AND SPECIAL JUDGE, KOTTAYAM

Kurian Pallathu v. State of Kerala

Case brief

What is this about?

What did the court decide?

Kurian Pallathu v. State of Kerala

Case brief

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What did the court decide?

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