Bombay High Court
BALCHANDRA SHANKAR KHADE AND ANRversusTHE STATE OF MAHARASHTRA
- Decided
- Disposal
- Disposed Off
- Bench
- SHIVKUMAR DIGE
Holding
The petitioners are discharged and the order of the Additional Sessions Judge is quashed.
Summary
The petition challenged the order of the Additional Sessions Judge, Thane, which confirmed a magistrate’s refusal to discharge two bank employees accused in a criminal revision concerning misappropriation of funds of a teachers' cooperative credit society. The petitioners contended that they had no knowledge of the bogus loan transactions and that an internal bank enquiry found them not guilty. The respondent argued that, as bank officers, they failed to supervise the loan credits and were therefore complicit. The High Court examined the charge‑sheet and found no documentary evidence linking the petitioners to the alleged fraud, noting the bank’s enquiry cleared them. Accordingly, the Court quashed the lower court’s order, discharged the petitioners of offences under Sections 403, 409, 465, 466, 417 read with Section 34 of the IPC, and allowed the petition.
Issues considered
- Whether the bank employees can be held criminally liable for failure to supervise loan disbursements in a cooperative credit society fraud.
- Whether the evidence on record establishes the petitioners' participation in the alleged misappropriation.
- Whether the order of the Additional Sessions Judge confirming the magistrate’s refusal to discharge the petitioners is legally sustainable.
Legislation cited
- Indian Penal Code, 1860 — s. 34, 403, 409, 417, 465, 466
Subjects
- discharge
- criminal revision
- bank employee liability
- loan fraud
- cooperative credit society
- Indian Penal Code
- supervisory duty
- quash order
Judgment
901-WP-4361-2016.doc
N.S.Kamble
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CR. WRIT PETITION NO. 4361 OF 2016
Balchandra Shankar Khade And Anr … Petitioners
Versus
State Of Maharashtra … Respondent
____________________________________________________________
NILAM Digitally signed by
NILAM SANTOSH
SANTOSH KAMBLE
Date: 2026.04.08
Mr.Yuvraj P. Narvankar, for the Petitioners.
KAMBLE 10:40:53 +0530
Mr.B.B. Kulkarni, APP for Respondent-State.
Mr.Mahesh Chavan, PSI, Wagle Estate Police Station.
____________________________________________________________
CORAM : SHIVKUMAR DIGE, J.
DATE : 2nd APRIL 2026
P.C. :
. The challenge in this Petition is to the impugned order passed by
the learned Additional Sessions Judge, Thane dated 3 rd September 2016
whereby the learned Sessions Judge has confirmed the order of 13 th Judicial
Magistrate First Class, Thane, thereby rejecting the discharge Application of
the Petitioners.
2. It is contention of learned counsel for the Petitioners that the
Petitioners are bank employees and original Accused in RCC No.229 and 229-
A of 1997. The learned counsel further submitted that it is alleged that the
office bearers and staff of the Primary Teachers Co-operative Credit Society,
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N.S.Kamble
Thane, misappropriated the amount by preparing false list of members of said
society, disbursed loans to these members and misappropriated the amount.
Accordingly, the offence was registered against them.
3. The allegations against the Petitioners are that they failed to verify
as to how the amounts were repeatedly being credited in bank accounts in the
name of members of the Society. The learned counsel further submitted that
the Preliminary Enquiry is done by the bank. In the said Enquiry, no fault of
Petitioners found. The learned counsel further submitted that the main
allegations are against the co-accused. The Petitioners were never involved in
it, but these facts are not considered by the Courts below and have passed
impugned order, which is erroneous and requested to allow the Petition.
4. It is contention of learned APP that, the Petitioners were bank
employees. The co-accused committed misappropriation of funds of the
Teachers Credit Society and the said amounts were deposited in the bank
account of its members. It was the duty of the Petitioners to see how the said
loan amount was credited repeatedly in the accounts of particular members of
the society, but it was not done, it shows their involvement in the crime. To
prove their innocence, trial is required. The learned Sessions Judge has passed
well reasoned order and no interference is required in it and requested to to
reject the Application.
5. I have heard both learned counsel. Perused impugned order,
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charge-sheet and documents produced on record.
6. The main allegations against the co-accused i.e. office bearers,
teachers and staff of the credit society who misappropriated the amount. The
allegations against the Petitioners are that being bank officers, they should have
supervised the bogus loan transactions. In my view, the Petitioners were not
aware about the members of the Teachers Credit Society, so they could not
have to know the bogus members and the real members. No documents
produced on record to show that they were involved in crime, but these facts
are not considered by the learned Sessions Judge while passing impugned
order. The Thane District Central Co-operative Bank conducted Enquiry
against the Petitioners and in the said Enquiry, Applicants were held not
guilty.
7. Considering these facts, I pass following order.
ORDER
(i) The Petition is allowed.
(ii) The impugned order passed by the learned Additional
Sessions Judge, Thane dated 3rd September 2016 in Criminal
Revision No.163 of 2014 is quashed and set aside.
(iii) The Applicants are discharged in Crime No.193 of
1995 from the offences punishable under Sections 403, 409, 465,
466 and 417 read with Section 34 of the Indian Penal Code.
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N.S.Kamble
(iv) Application is allowed in the aforesaid terms.
(SHIVKUMAR DIGE, J.)
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