In the recent case of State of Madhya Pradesh v. Yogendra Singh Jadon & Anr., the Hon’ble Supreme Court reiterated that the provision under Section 482 of the Code of Criminal Procedure, 1973 is such that it cannot be exercised where allegations have to be proved in a Court of law.

In the case in question, it was alleged that the deceased father of the accused connived with other employees of a Cooperative Bank in order to commit financial irregularities. And to accomplish this, the use of forged documents was made which were acquired by misusing his post and providing fake loans to the relatives. The accused were charged under offenses comprising of Sections 420, 406, 409, 120B of the Indian Penal Code, 1860.

The bench who was considering this appeal consisted of Justice L. Nageswara Rao and Justice Hemant Gupta. The Supreme Court held that the respondents were beneficiary of the grant of cash credit when their father was the President of the Bank. The power under Section 482 of the Code of Criminal Procedure, 1973 cannot be exercised when allegations are required to be proved in the Court of Law. The method in which, even in the absence of proper documents, the loan was advanced, added to the fact that the respondents were beneficiary of benevolence of their father, prima facie discloses an offence under Section 420 and 120B of the Indian Penal Code, 1860.

Moreover, the charge under 420 of IPC is not an isolated offence but has to be read along with other offences under which the respondents may be liable with the aid of 120B

Consequently, the Supreme court deemed it fit to allow the appeal. It would be open to the respondents to take any other action they think is proper in accordance to the law.

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Link to Judgement: State of MP v. Yogendra Singh Jadon