CRL OP/22044/2026 of R.Karpagam Vs Inspector of Police on 26 October 2026

ORDER

The petitioner is the third accused in C.C. No.7 of 2011 on the file of the Additional District Court No.II for CBI cases in Coimbatore. The petitioner seeks to quash the proceedings initiated against her.

2. The case of the prosecution is that the petitioner and her husband, one Ramamoorthy are running a partnership firm under the name and style of "M/s.Sri Lakshmi Textile Mills" at Somanur, Coimbatore District. The firm represented by its partners had availed several credit facilities from M/s. City Union Bank, P.N. Palayam Branch, Coimbatore. The firm suffered losses and as on 31.07.2005, owed a sum of Rs. 18 Crores to the said Bank.

3. Earlier, the petitioner’s husband had approached the fifth accused, who was then the Manager of the United Bank of India, Coimbatore. The fifth accused had recommended the loan proposals that had been placed by the petitioner’s husband to the United Bank of India. This was done despite the fact that the firm was suffering from losses. Thereafter, the fifth accused, along with A1, A2, and the petitioner herein, entered into a criminal conspiracy to cheat the United Bank of India by fraudulently sanctioning the limit of Rs.8 Crores to M/s.Sri Lakshmi Textile Mills.

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CRL OP No. 22044 of 2026

4. According to the petitioner, the transaction is a loan transaction and the loan account had been assigned by the Bank to one M/s. International Asset Reconstruction Company on 02.04.2009 for a consideration of Rs.2.27 Crores. The petitioner further states that the charge sheet was filed under an erroneous impression that the entire loan facility was secured solely with the mortgaged property and the alleged overvaluation of the property amounted to an offence under Section 420 of the Indian Penal Code.

5. It is further alleged that the petitioner had approached M/s. International Asset Reconstruction Company and had paid a sum of Rs.2.77 Crores and obtained a "No Dues Certificate" on 10.11.2010. Since the civil liability arising out of the loan transaction had been discharged, continuation of the criminal proceedings on the same set of facts are unwarranted. It is further urged that there is no mens rea as required under Section 420 as set forth in the charge sheet.

6. Taking into consideration the pleas of the petitioner, notice was ordered, calling upon the first respondent / CBI to file the counter. Counter affidavit was also filed.

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CRL OP No. 22044 of 2026

7. Heard Mr. Abrab Mohamed Abdulla for the petitioner and Mr. K. Srinivasan, Spl. P.P. (CBI) for the first respondent.

8. The position of law has been well settled by the Supreme Court that for the mere extinguishment of civil liability, criminal liability automatically does not stand extinguished. A perusal of paragraph No.30 of the counter points out that the petitioner herein had signed the following documents: "1. Current Account Opening form;

2. Specimen Signature Card;

3. Net Worth Statement;

4. Packing Credit Charge Form-O dated Nil along with copy of M/s.Overstock.Com, USA Purchase Order No.16607 dated 04.04.2005 seeking Rs.122 Lakhs Packing credit;

5. Packing Credit Charge Form-O dated 28.09.2005 along with copy of M/s.Chimes. Inc, USA Purchase Order No.CH-126 dated 20.04.2005 secking Rs.108 Lakhs Packing Credit;

6. Packing Credit Charge Form-O dated 28.09.2005 along with copy of M/s.Chimes.Inc, USA Purchase Order No.CH-143 dated 31.05.2005 seeking Rs.59 Lakhs Packing Credit;

7. Packing Credit Charge Form-O dated 28.09.2005 along with copy of M/s.Overstock.Com Purchase Order

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CRL OP No. 22044 of 2026 No.16632 dated 05.04.2005 seeking Rs.68 Lakhs Packing Credit;

8. Packing Credit Charge Form-O dated 28.09.2005 along with copy of M/s.Overstock.Com Purchase Order No.16633 dated 05.04.2005 seeking Rs.68 Lakhs Packing Credit;

9. Packing Credit Charge Form-O dated 07.10.2005 along with copy of M/s.Overstock.Com Purchase Order No.21247 dated 14.09.2005 seeking Rs.1.65 Crores Packing Credit;

10. Packing Credit Charge Form- O dated 07.03.2006 2005 without any copy of Purchase Order seeking Rs.34 Lakhs Packing Credit;

11. All the Packing Credit Applications in the name of Smt.Karpagarm and concerned Debit Vouchers; and

12. Foreign Bill Account No.TPR/FBP/370021/06 dt. 08.03.206, etc. LW-2 Shri B.Krishna Mohan, Branch Manager, UBI, Tirupur while examined as PW-8 by the Trial Court, he has duly exhibited the above documents."

9. Apart from this, PW8, the Branch Manager of the United Bank of India, Tirupur during the relevant point of time has also entered the witness box in order to speak about the active role played by the petitioner herein.

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CRL OP No. 22044 of 2026

10. It is not a case of mere suspicion for this Court to interfere under Section 528 of BNSS. A reading of the charge sheet shows that in active connivance with the Managers of the Bank during the relevant point of time, M/s.Sri Lakshmi Textile Mills, along with Mr. Ramamoorthy and the petitioner herein utter contravention of law had defalcated crores of rupees from the United Bank of India. Furthermore, the petitioner had earlier filed an application for discharge and the same had been dismissed. The petitioner has not challenged the said order before this Court.

11. Overall, I am convinced that the charge sheet does not attract any of the requirements laid down in State of Haryana and Others Vs. Bhajan lal, AIR 1992 SC 604. It shows that the petitioner falls under the category of grave suspicion and not a case of mere suspicion. As trial has already commenced, I am not inclined to exercise the discretion vested in this Court under Section 528 of the BNSS and quash the proceedings.

12. Accordingly, this criminal original petition stands dismissed. Consequently, connected miscellaneous petitions are closed. 26-10-2026

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CRL OP No. 22044 of 2026 Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No ab To

1. The Additional District Court No.II for CBI Cases, Coimbatore District.

2. The Public Prosecutor, Madras High Court.

3. The Inspector of Police, SPE.CBI ACB, Chennai.

4. United Bank of India Coimbatore Branch.

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CRL OP No. 22044 of 2026 V.LAKSHMINARAYANAN J. ab CRL OP No. 22044 of 2026 and CRL MP No. 14618 of 2026,CRL MP No. 14614 of 2026 26-10-2026

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