misrepresentation - The Legal Chamber

The Supreme Court held that criminal proceedings involving serious economic offences, especially those under the Prevention of Corruption Act, cannot be quashed merely because a financial settlement or one-time settlement has been reached with the bank. Such offences constitute a crime against society at large, and quashing would be contrary to the interests of justice. Facts Of The Case: An FIR was registered in 2015 following a complaint by the State Bank of Bikaner and Jaipur. The bank alleged that M/s Sarvodaya Highways Ltd. had fraudulently secured credit facilities of ₹60 crores by submitting fabricated work orders and financial statements to project a false financial standing. An internal inquiry later declared the account a Non-Performing Asset, uncovering an alleged fraud of...

The Supreme Court distinguished between irregular and illegal appointments, holding that procedural lapses not attributable to the appointees do not render appointments void if made against sanctioned posts by competent authority. The doctrine of severability applies to protect valid appointments from en masse cancellation, ensuring compliance with Articles 14 and 16. Natural justice mandates individual scrutiny before termination. Facts Of The Case: The appellants were initially appointed to Class-IV posts in the Jharkhand State Electricity Board (JSEB) between 2004–2006. Subsequently, they applied for and were selected for Class-III posts (Routine Clerk and Lower Division Assistant) through an internal recruitment process in 2009, pursuant to a standing order. Their appointments were f...

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Public vs. Private Wrong: Supreme Court Explains Why Bank Fraud Cases Can’t Be Quashed Just Because Bank Settled

Doctrine of Severability: Supreme Court Says Don’t Punish the Innocent for Administrative Lapses