N. Lakshman Reddy Vs State (Madras High Court)
The Madras High Court allowed petitions seeking quashing of criminal proceedings pending before the IX Special Judge for CBI Cases, Chennai, arising out of allegations relating to the refund of excess wharfage charges. The Court held that the dispute did not disclose the ingredients of the alleged criminal offences and that continuation of the prosecution amounted to an abuse of the process of law.
The prosecution alleged that medical equipment imported by an importer through Chennai Port attracted wharfage charges of Rs. 59,23,610/-. It was alleged that after two unsuccessful attempts to obtain a refund of excess wharfage charges, the accused, including a Customs Appraiser and officials of a clearing and forwarding agency, conspired to prepare a forged proforma invoice showing separate values for break bulk cargo and containerized cargo. Based on this document, Customs authorities issued a breakup value, which enabled the Chennai Port Trust to refund Rs. 21,85,082/- towards excess wharfage charges. An FIR was registered for offences under Sections 120-B, 420, 468 and 471 of the Indian Penal Code and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988. Although a charge sheet was initially filed against all four accused, sanction to prosecute the first accused was declined, and prosecution continued against the remaining accused.
