Supreme Court Restores Fraud Case for Fresh Examination by Kerala High Court

The case involves an appeal filed by M.P. Ramani against the State of Kerala and another respondent, contesting a decision made by the Kerala High Court. The dispute centers around a forged cheque allegedly used by the second respondent to withdraw money from the appellant’s bank account.

Background of the Case

The appellant, M.P. Ramani, lodged a complaint on January 14, 2014, at the Payyannur Police Station. She alleged that the second respondent fraudulently acquired a cheque belonging to her and forged her signature to withdraw an amount of Rs.3,50,000. The cheque, issued by Canara Bank, had not been in use for over 30 years due to the absence of a new MCRI number. The cheque was presented at Federal Bank, Payyannur Branch, through the account maintained by the second respondent.

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Following this complaint, an FIR was registered under Sections 420, 465, 468, and 472 of the IPC. A detailed investigation was carried out, leading to the filing of a final report under Section 173 Cr.P.C., which confirmed the accusations against the second respondent.

High Court’s Decision and Appeal

The second respondent approached the Kerala High Court under Section 482 Cr.P.C., seeking to quash the final report. The High Court, in an order dated October 7, 2020, allowed the petition and quashed the proceedings. The court reasoned that the cheque in question belonged to the complainant and contained her signature. It also noted that the final report did not mention any threat posed by the accused.

The appellant challenged this decision before the Supreme Court, arguing that the High Court’s order was cryptic and failed to consider the detailed investigation and evidence presented in the case.

Supreme Court’s Observations

The Supreme Court, after hearing arguments from both sides, found the High Court’s order lacking in proper legal scrutiny. The apex court emphasized that the High Court had quashed the final report without thoroughly examining the facts and allegations. The judgment referenced the case of State of Haryana & Ors. vs. Bhajan Lal & Ors., which laid down principles for exercising powers under Section 482 Cr.P.C.

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The Supreme Court noted:

“The very case sought to be made out by the appellant is that the cheque belonging to the appellant has been wrongly possessed by respondent No.2 and the cheque has been presented for realization by forging her signature and an attempt was made to extract the money. The non-examination of the case is incorrect perspective, keeping in view the guideline laid down by this Court.”

Verdict of the Supreme Court

Considering the lapses in the High Court’s decision, the Supreme Court set aside the October 7, 2020, order. It restored the case to the Kerala High Court for fresh examination, ensuring that the matter is reviewed in accordance with law. The Court stated:

“It would be appropriate for us to set aside the order and restore the petition to the file to the High Court so as to enable the parties to put forth their contentions and allow the High Court to comprehensively advert to the matter on facts and law.”

The Supreme Court concluded by allowing the appeal and directing the High Court to re-evaluate the case with all contentions left open.

Petitioner Name: M.P. Ramani.
Respondent Name: State of Kerala & Anr..
Judgment By: Justice D.Y. Chandrachud, Justice A.S. Bopanna.
Place Of Incident: Payyannur, Kerala.
Judgment Date: 11-08-2022.

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