HDFC BANK LTD. versus THE STATE OF BIHAR & ORS.

HDFC BANK LTD. versus THE STATE OF BIHAR & ORS.

The Supreme Court held that on a prima facie reading the FIR and complaint did not disclose the ingredients of offences alleged against the appellant-bank: there was no allegation of dishonest inducement or mens rea (and mens rea cannot be imputed to a juristic person in the manner alleged), no entrustment of...

Source-derived case information.

Parties
Appellant: HDFC Bank Ltd.; Respondent: The State of Bihar & Ors.; Respondent (respondent No.5): Smt. Priyanka Sharma, Deputy Director of Income Tax (Investigation), Unit-2(2)
Jurisdiction
India
Judgment Date
22 October 2024
Procedural Posture
Criminal Appeal (criminal Appeal No. 4324 of 2024) / Appeal to the Supreme Court From High Court Order Dismissing Petition Under Section 482 Cr.p.c.
Outcome
Appeal allowed; impugned High Court judgment and FIR quashed and set aside qua the appellant-bank.
Legal Topics
Quashing of F.i.r., Section 482 Cr.p.c., Sections 34, 37, 120 B, 201, 206, 217, 406, 409, 420, 462 IPC, Mens Rea and Juristic Persons, Entrustment and Criminal Breach of Trust
Criminal Law Quashing of F.i.r. Section 482 Cr.p.c. Sections 34, 37, 120 B, 201, 206, 217, 406, 409, 420, 462 IPC Mens Rea and Juristic Persons Entrustment and Criminal Breach of Trust

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Parties

HDFC Bank Ltd.

Appellant

The State of Bihar & Ors.

Respondent

Smt. Priyanka Sharma, Deputy Director of Income Tax (Investigation), Unit-2(2)

Respondent (respondent No.5)

Procedural Posture

Criminal Appeal (criminal Appeal No. 4324 of 2024) / Appeal to the Supreme Court From High Court Order Dismissing Petition Under Section 482 Cr.p.c.

Legal Issues

  1. 1 What is the nature of enquiry while determining quashing of an FIR under Section 482 Cr.P.C.
  2. 2 Whether the allegations in the FIR disclose prima facie ingredients of offences under Sections 420, 406, 409, 462 and other invoked provisions of the IPC
  3. 3 Whether mens rea can be imputed to a juristic person (the bank) and whether alleged acts disclose dishonest inducement or entrustment

Ratio Decidendi

The Supreme Court held that on a prima facie reading the FIR and complaint did not disclose the ingredients of offences alleged against the appellant-bank: there was no allegation of dishonest inducement or mens rea (and mens rea cannot be imputed to a juristic person in the manner alleged), no entrustment of property to the bank to invoke Sections 406/409/462 IPC, and no material to establish common intention for Sections 34, 37, 120B. The case fell within Bhajan Lal categories (2) and (3), and continuation of proceedings would cause undue hardship; accordingly the FIR was quashed and the High Court order set aside insofar as it pertained to the appellant-bank.

Court Disposition

Appeal allowed; impugned High Court judgment and FIR quashed and set aside qua the appellant-bank.

Orders

  • The appeal is allowed.
  • The impugned judgment and order dated 8th June 2022 of the High Court of Judicature at Patna in Criminal Writ Jurisdiction Case No. 1375 of 2021 is quashed and set aside.