In the later case of HDFC Bank Ltd. vs. The State of Bihar & Ors., the Supreme Court ruled in favor of HDFC Bank, subduing an FIR enrolled against the bank's authorities in association with the operation of a customer's locker. This case emerged from a criminal summons request challenging the legitimateness of the FIR recorded by the Deputy Director of Income Tax, charging that the bank abused a limiting arrange beneath the Income Tax Act, 1961.
Case Background
In October 2021, amid a look and seizure operation beneath Section 132 of the Income Tax Act, Smt. Sunita Khemka's bank locker at HDFC Bank, Patna, was recognized, and a prohibitory arrange was issued on October 5, 2021, excepting the operation of her bank accounts, locker, and other resources. Be that as it may, after accepting a disavowal arrange on November 1, 2021, the bank erroneously expected the limitation had been lifted on both the bank accounts and the locker, allowing Sunita Khemka to function her locker on November 9, 2021.
When the Income Tax authorities discovered this, they filed a FIR against HDFC Bank officials for violating the initial restraining order, charging them with offenses under several sections of the Indian Penal Code (IPC), including Sections 409 (criminal breach of trust), 420 (cheating), and 462 (unauthorized access to a bank locker).
The Supreme Court's Decision
After analyzing the case, the Supreme Court concluded that the FIR failed to prove mens rea (criminal intent) on the side of the bank officials. The Court noted that the bank’s actions were based on a misunderstanding of the revocation order, which only lifted the restriction on bank accounts, not the locker. There was no evidence of fraudulent intent or collusion between the bank and Sunita Khemka.
Additionally, the Court observed that since the bank is a juristic entity, it cannot possess mens rea, and there was no indication of dishonesty or intent to deceive. The FIR, therefore, failed to meet the legal criteria for charges under Sections 409 and 420 of the IPC.
Key Takeaways
This judgment emphasizes the importance of a clear understanding of legal orders by financial institutions and the protection of bank officials from criminal prosecution in cases of honest mistakes. The Supreme Court highlighted that criminal proceedings must be based on solid legal grounds, and procedural errors alone do not constitute criminal offenses.
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TAGS: HDFC Bank Supreme Court Bihar bank locker restraining order FIR quashed criminal breach of trust Section 409 IPC Section 420 IPC Income Tax Act locker operation mens rea financial institutions.
