Fair1 of 17CC no. 507 of 2014
IN THE COURT OF THE II ADDITIONAL JUNIOR CIVIL JUDGE CUM
II ADDITIONAL JUDICIAL MAGISTRATE OF FIRST CLASS, AT KARIMNAGAR.
PRESENT : Ms. M. Hemalatha, II Addl. Junior Civil Judge cum II Addl. Judl. Magistrate of F.C., Karimnagar.
Thursday, the 24th day of April, 2025
CALENDAR CASE No. 507 of 2014
(Crime No. 241/2013 of PS, Karimnagar I Town )
Nameofthe:The State of Telangana through Inspector of complainantPolice, Karimnagar I Town police station.
Name of the accused:Katapalli Srikanth, S/o. Hanmanthu, 35 years Caste : Goud, N/o. Valigonda (V) of Nalgonda District now at H.No. 8-3-48/3, Bhagathnagar, Karimnagar.
Crime number, police:241 of 2013 stationKarimnagar I Town police station Offencepunishable:409 of the Indian Penal Code. under sections Prosecution:Sri A.Ranjith Kumar, Assistant Public conducted byProsecutor. Defence conducted by:Sri E.Raja Reddy, Advocate. Plea of the accused:Not Guilty. Finding of the Court:Accused is found not guilty for the offences punishable under section 409 of the Indian Penal Code and accordingly, he is acquitted of the said offences under section 248 (1) of Cr.P.C. Accused is set at liberty and the bail bonds of the accused shall stand canceled after appeal time. As there is no property deposited before this Court in this case, as such, there is no order as to the property.
Sentence or Order:Nil * * *
Fair2 of 17CC no. 507 of 2014
This case came before me on 23.04.2025 for final hearing in the presence of Sri. A.Ranjith Kumar, learned Additional Public Prosecutor for the complainant/State and Sri E.Raja Reddy, Advocate for the accused; after perusing the case records, upon hearing the arguments of both the counsels and having stood over for consideration till this date, this Court delivered the following:-
: : J U D G M E N T : :
1.The charge-sheet is laid by the Inspector of Police, Karimnagar I
Town police station in crime no.241 of 2013 for the offences punishable under section 409 of the Indian Penal Code (for short “IPC”).
2.The brief facts of the prosecution case are that on 08.07.2013 at 16:00 hours Patibandla Raghuram (complainant/LW1) has sent a complaint through registered post in which he stated that K.Srikanth i.e. accused who was incharge of Savings bank control organization,
Karimnagar Head post office has withdrawn the amounts fraudulently in his savings bank account bearing number 1277289, from SB account of his sister K.Sunitha bearing A/c. No.128001 and from Savings bank account of N.Venkanna and N.Lalitha (joint) bearing account No.128259; that accused took withdrawal amounts in his own account, on behalf of his sister and on behalf of his friend
Venkanna by presenting SB-7 forms i.e. withdrawal forms without actually having balances in their accounts by inflating the balance in the above said Savings bank accounts by making fake deposit entries and deleting withdrawals already taken in the ledger card in the system by using DESUPER user login and misappropriated
Fair3 of 17CC no. 507 of 2014 government money. Accused did not produce the passbook at the counter of the post office while taking withdrawal amounts.
Accused being a postal employee, the counter clerk did not insist for production of passbook on good faith; that on account of fraudulent withdrawals taken by the accused, there is a loss of
Rs.14,20,271.50 and penal interest on the said amount to the government; that officials voluntarily credited an amount of
Rs.11,58,000/- to the government so far. Still the accused has to credit Rs.2,62,271.50 and penal interest on the above said amount.
3.Basing on the said report, V.Surender (LW7), Inspector of Police,
Karimnagar I Town police station registered a case in Crime No.241 of 2013 for the offences punishable under sections 409 of the Indian
Penal Code and took up investigation. During the course of investigation, Inspector of police examined and recorded the statements of Raghuram, Pallerla Sravan Kumar, Beesu Sunitha and
Nalumachu Venkanna (LWs 1 to 4) and proceeded to the scene of offence, observed the scene and incorporated the same in Crime
Details Form in the presence of mediators.
4.Subsequently, G.Narender (LW8)/Inspector of Police took up further investigation. On 16.11.2013 accused surrendered before Inspector of Police (LW8) and on interrogation accused voluntarily confessed to have committed this offence and further furnished sufficient sureties for his release on bail as he obtained anticipatory bail from
Fair4 of 17CC no. 507 of 2014 the Hon’ble District and Sessions Judge, Karimnagar vide Crl.M.P.
No. 1059/2013. Inspector of Police collected documents from LW1.
Subsequently, T.Karnakar Rao/LW9/Inspector of Police took up further investigation. After completion of investigation, Inspector of
Police (LW9) filed charge sheet for the offence punishable under section 409 of the Indian Penal Code against the accused.
5.This case was taken on file by I Additional Judicial Magistrate of First
Class, Karimnagar for the offences punishable U/Sec.409 of IPC against the accused. Later, this case was transferred to this Court at the stage of cross examination of PW1, as per the orders of Hon’ble
Principal District and Sessions Court, Karimnagar vide proceedings
in dis. no.3333/Tr. Of cases/2019/ STATS/DCK, dated 03.05.2019.
6.On appearance of the accused, copies of documents relating to the case were furnished to him, as required under section 207 of Cr.P.C.
7.The accused was examined under section 239 of Cr.P.C. Heard and charges framed for the offence punishable under section 409 of the
Indian Penal Code against accused, read over and explained to him in vernacular language. The accused pleaded not guilty and claims to be tried.
8.During the course of trial, on behalf of prosecution PWs 1 to 7 were examined and Exs.P1 to P56 were marked. Police filed report along with death certificate of Nalumachu Venkanna (LW4). Therefore, this Court closed the evidence of Venkanna (LW4). Learned APP has
Fair5 of 17CC no. 507 of 2014 given up the evidence of Thota Sathyanarayana (LW6).
9.After closure of the prosecution evidence, accused was examined under section 313 of Cr.P.C., with reference to the incriminating evidence found against him from prosecution witnesses. Accused denied the same and reported no defence evidence.
10.Heard the learned Additional Public Prosecutor and the learned defence counsel for the accused.
11.Now the points for determination is :
Whether the prosecution has proved the guilt of the accused for the offences punishable under sections 409 of the Indian
Penal Code beyond all reasonable doubts?
POINT
12.The prosecution alleges that the accused, a counter clerk at
Karimnagar Head Post Office, fraudulently withdrew money from his own savings bank account (No. 128001), his sister Smt. K. Sunitha's account (also No. 128001, though this seems to be an error as both accounts have the same number), and his friend Sri N. Venkanna's joint account with Smt. N. Lalitha (No. 128259). He allegedly used fake deposit entries, deleted withdrawal records in the system using
DESUPER user login, and presented SB-7 forms without actual balances in the accounts. By not producing passbooks and exploiting his position, he misappropriated Rs.14,20,271.50, causing loss to the government. Although he repaid Rs.11,58,000/-, a
Fair6 of 17CC no. 507 of 2014 balance of Rs.2,62,271.50 remains outstanding.
13.To prove the accused's guilt, the prosecution relied on the testimonies of seven witnesses (PW1 to PW7). PW1, the complainant, lodged the police report. PW2, a counter clerk, provided relevant testimony. PW3 served as a panch witness for the scene of offence panchanama. PW4, a postal employee and the accused's sister, also testified. PW5 and PW6 were the investigation officers responsible for registering the case and filing the charge sheet.
14.Since, PW-4 did not support the case of the prosecution, though the learned Assistant Public Prosecutor cross examined them, but, during their cross examination, nothing was elicited in support of the case of the prosecution.
15.On careful scrutiny of evidence of prosecution witnesses and on perusal of the report lodged by PW1 under Ex. P1, basing on which, criminal law was set into motion, wherein, PW1 stated that the accused worked as In-charge Saving Bank Control Organization,
Karimnagar Head Post office, Karimnagar and also joint account holder of saving bank account bearing Number 127289 along with his wife. Postal department utilized the Sanchaya post software and same was used in counter for facilitate savings bank transactions and the accused was custodian and auditor of the transactions, accused used to login to the Sanchaya post software with the help
Fair7 of 17CC no. 507 of 2014 of DESUPER user login ID and alter the transactions with the help of the same and by taking advantage of the same accused on 27.01.2012 altered in his saving bank account by adding an amount of Rs.1,00,000/- against existing balance of Rs.58,525/-, on 08.02.2012 added one more lakh in his saving bank account.
16.Later, on 12.03.2012 accused withdrawn an amount of Rs.1 lakh and on 14.03.2012 accused withdrawn an amount of Rs.1 lakh and he deleted the withdrawal entry dated 12.03.2012 and taking advantage of the same he has once again withdrawn an amount of
Rs.1 lakh from his account bearing number 127289 on 21.04.2012, prior to this he altered his closing balance so as to appear the same balance in his account and managed withdrawals of Rs.10,000/- on 13.07.2009, an amount of Rs. 10,000/- on 23.07.2009 and an amount Rs.60,000/- on 25.11.2009 and an amount of Rs.10,000/ on 09.12.2009 result of these withdrawals his actual balance in the account on 03.03.2010 is minus (-) Rs.91,271.50-00.
17.Account No.128001 in the name of his sister/LW B. Sunitha is being managed by the accused himself. The account was opened on 08.06.2006 with a balance of Rs.50/ but the accused altered the balance as Rs.8,050/- also the accused has deleted a withdrawal transaction of Rs.1,00,000/- on 24.07.2007, the accused also deleted withdrawal transactions on 20.04.2009 for an amount of
Rs.2,000/- on 22.08.2009 for an amount of Rs.9,000/- on 25.08.2009
Fair8 of 17CC no. 507 of 2014 for an amount of Rs.25,000/- on 25.09.2009 for an amount of
Rs.15,000/-, an amount of Rs.47,000/- on 03.10.2008 and on 05.01.2010 an amount of Rs.21,000/- and Rs.50,000/- on 18.01.2010 and Rs.24,000/- on 03.02.2009. These amounts has been withdrawn in installments by the accused.
18.The withdrawal forms of account no. 128001 were signed by Lw-3 but they were presented in person by the accused and the same were honored as accused is postal employee. Later, he inserted fake deposits of Rs.45,000/- on 27.12.2011, Rs.70,000/- on 9.1.2012 and
Rs.45,000/-on 27.1.2012 and Rs.45,000/- on 9.2.2012 in the account
No. 128001 taking advantage of the DESUPER login credentials. Out of such inflated amounts he has withdrawn an amount of Rs.1 lakh on 25.02.2012 an amount of Rs.45,000/-on 24.04.2012 an amount of Rs.63,000/- on 27.04.2012. He has deleted these withdrawal entries and again taken a withdrawal of Rs.1,90,000/- on 02.08.2012.
19.Account No. 128259 is in the name of Lw-4/Sri N. Venkanna and Lw- 4 is friend of accused, Lw-4 was introduced by the accused at the time of opening the account. The accused has inserted a fake deposit of Rs. 2 lakhs with date of deposit as 18.11.2011. Later an amount of Rs. 1 lakh was withdrawn on 28.03.2012 and an amount of Rs.1 lakh was withdrawn on 19.5.2012 out of such fake deposits.
Later he has deleted both the withdrawal entries and taken a
Fair9 of 17CC no. 507 of 2014 withdrawal of Rs.2,05,000/ on 16.08.2012. The withdrawal forms were signed by Sri. N. Venkanna/LW-4, but presented and withdrawn by accused and same were honored as accused is our employee.
20.The accused in total misappropriated and withdrawn in excess an amount of Rs.3,91,271.50-00 from account No. 127289 (Accused account) and an amount of Rs. 6,24,000/- from account no. 128001 (Lw-3 account) and Rs.4,05,000/- from account No. 128259 (Lw-4 account). Thus, the total misappropriated and withdrawn amount by the accused from the savings bank accounts of our department is
Rs.14,20,271.50-00. In the year, 2012, on credible information a
Squad from Regional office, Hyderabad has investigated into the above said irregularities and initially found some misappropriation and later directed Superintendent of Post Offices, Karimnagar
Division to make further investigations and PW1 was appointed as investigation officer and as per his investigation he found irregularities and he gave complaint to police.
21.During cross-examination, PW1 testified that he worked as Inspector of Posts in Karimnagar North Sub-Division from August 30, 2012, to
August 18, 2013. He explained the postal department's savings bank account procedures, stating that Counter Assistants receive and pay out amounts, and Deputy Postmasters (DPMs) verify signatures and balances on withdrawal forms. According to standard procedure, account holders present passbooks and withdrawal
Fair10 of 17CC no. 507 of 2014 forms, and Counter Assistants stamp passbooks, note balances, and obtain account holder signatures on withdrawal forms after payment.
22.PW1 testified that transactions involving withdrawals are handled by
Counter Assistants and Deputy Postmasters (DPMs). During the alleged offence, P. Shravan Kumar and N. Venu were Counter
Assistants, while K. Shyam Sunder Reddy and K. Ravinder Reddy were DPMs. PW1 confirmed that the postal department has internal auditing and inspection processes, including annual audits by the
Director of Accounts and internal checks. Notably, these audits did not reveal discrepancies during 2007-2012.
23.PW1 emphasized that the accused was neither a Counter Assistant nor a DPM during this period and that the primary responsibility for discrepancies lies with these roles. However, the Counter Assistants and DPMs involved were not charged in the present case. Instead,
K. Ravinder Reddy and K. Shyam Sunder Reddy, who worked as
DPMs, paid back the misappropriated amount, and departmental proceedings were initiated against them and the Counter Assistants.
PW1 also stated that the accused was transferred to Siddipet Post
Office from June 2008 to March 2011 and was not connected to subsequent transactions. The entire misappropriated amount was recovered, and no prior government permission was obtained for prosecution. Receipts for deposits made to the accounts of N.
Fair11 of 17CC no. 507 of 2014
Venkanna and K. Sunitha were credited to unclassified receipts of the department.
24.PW2, Pallera Sravan Kumar, a former Postal Assistant at Head Post
Office, Karimnagar, testified that he worked there from April 2010 to
September 2012. During this period, the accused, who was in charge of the Savings Bank Control Organization (SBCO), presented withdrawal forms without passbooks for his own account, his sister
Sunitha's account, and Venkanna's account. PW2 verified the account particulars and signatures through the office system and made payments to the accused on multiple occasions. He later learned that the accused had withdrawn a total of Rs.14,00,000/- in six transactions from Sunitha's and Venkanna's accounts without their presence. Following a departmental enquiry that found the accused guilty of misappropriation, PW2 faced suspension for 13 months but was reinstated after the enquiry concluded.
25.During cross-examination, PW2 testified that his duties include making payments to customers, depositing payments, and verifying signatures. He stated that he typically verifies signatures and sends withdrawal forms to the Deputy Postmaster (DPM) for approval
before making payments. PW2 admitted that he would refuse
payment if there were signature discrepancies. Notably, he also stated that he made payments to Sunitha and Venkanna after verifying their signatures, despite Venkanna not being present at
Fair12 of 17CC no. 507 of 2014 the post office and not producing his passbook.
26.PW3 is the panch witness for alleged CDF panchanama deposed that he has been working as an employee in postal department since 1997 and he knew LW6. On 09.07.2013 police came to post office and conducted CDF panchanama at the Head post office,
Tower circle, Karimnagar On confronting, PW3 identified his signature on Ex.P54/CDF. The evidence of PW3 is unshaken in cross examination by the defence counsel.
27.PW5 is the investigating officer deposed about registration of crime by him after receiving complaint from PW1 through registered post, examination of witnesses and preparation of crime detail form and handing over of CD file to LW8/G.Narender/Inspector of Police.
28.PW6 is another investigating officer deposed that on 16.11.2013 he took up the CD file for further investigation from PW5 and on the same the accused surrendered before him as per the orders of
Hon’ble District and Sessions Judge, Karimnagar vide Crl.M.P. No.
1059/2013 and released him on bail after furnishing sufficient sureties. PW6 further deposed that he has collected the documents from PW1 and handed over of CD file to LW9/T.Karunakar/Inspector of Police.
29.PW7 is another investigating officer deposed that on he received CD file from PW6 for further investigation and after completion of investigation, he filed charge sheet against accused for the offence
Fair13 of 17CC no. 507 of 2014 punishable under section 409 of IPC.
30.Before deciding the present case, it is imperative to refer to section 409 IPC which reads that "Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent, commits criminal breach of trust in respect of that property, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine”. Section 409 IPC lays down the offence pertaining to criminal breach of trust by public servant or by banker, merchant or agent.
31.It is further important to define the term Criminal Breach of Trust which is defined as under Section 405 IPC and reads as under that "Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, PS. J.P. Kalan U/Sec.409 of IPC State Vs.
Surender Singh which he has made touching the discharge of such trust, or willfully suffers any other person so to do, commits "criminal breach of trust".
32.Thus, for an offence under section 409 IPC, it must be proved that
Fair14 of 17CC no. 507 of 2014 the person entrusted with the property, or any dominion over property in his capacity as a public servant committed criminal breach of trust in respect of such property as defined in section 405 of IPC. Therefore, the prosecution, in the first instance, must show that the entrustment of property or dominion over property "in any manner whatsoever" was secured by the accused "in his capacity as a public servant, agent etc.
33.Upon reviewing PW1's testimony, it appears that the alleged misappropriated amount was recovered from K. Ravinder Reddy and
K. Shyam Sunder Reddy, who worked as Deputy Postmasters (DPMs). Departmental proceedings were initiated against N. Venu and P. Sravan Kumar, who served as Counter Assistants, as well as against the aforementioned DPMs. Notably, the accused did not hold either of these roles. Further examination of the charge sheet reveals that P. Sravan Kumar, one of the Counter Assistants involved, was listed as a witness (LW2) and later testified as PW2.
Additionally, K. Sunitha @ Beesu Sunitha (LW3, examined as PW4)
turned hostile, and N. Venkanna was listed as LW4.
34.Upon further review of the record, it appears that the prosecution did not file prior sanction to prosecute the accused. The only mention of prior sanction is a statement by PW1 during cross- examination, claiming that they obtained sanction from the concerned authorities, but no documentary evidence supporting this
Fair15 of 17CC no. 507 of 2014 claim was presented.
35.According to PW1's testimony, the alleged misappropriated amount was recovered from others, and a departmental enquiry was conducted against P. Shravan Kumar, resulting in his suspension for 13 months. Notably, despite this, P. Shravan Kumar (examined as
PW2) was made a witness in the present case, rather than being treated as an accused.
36.Under Section 197 of the CrPC, prior sanction is required to prosecute a public servant for acts done in discharge of official duties, protecting them from malicious or frivolous prosecutions. In the present case, it appears that no prior sanction was obtained to prosecute the accused, a crucial procedural requirement that may impact the validity of the prosecution.
37.Based on the discussion above, this Court is of the opinion that the evidence on record is insufficient to establish criminal liability against the accused. The prosecution has failed to prove the guilt of the accused beyond a reasonable doubt. Therefore, the accused is entitled to the benefit of doubt and deserves to be acquitted.
Accordingly, the point is answered.
38.In the result, the accused is found not guilty for the offence punishable under section 409 of the Indian Penal Code and the accused is acquitted under section 248(1) of Cr.P.C. for the said offence. The accused is set at liberty and the bail bonds of accused
Fair16 of 17CC no. 507 of 2014 shall stand canceled after appeal time. As there is no property deposited before this Court in this case, as such, there is no order as to the property.
Typed to my dictation by the Stenographer Gr.III, partly typed by me on my laptop, corrected and pronounced by me in the Open Court on this the 24th day of April, 2025.
II Addl. Junior Civil Judge-cum- II Addl. Judl. Magistrate of F.C., Karimnagar.
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
FOR THE PROSECUTION: FOR THE DEFENCE :
PW.1: Patibandla Raghuram.-None- PW.2: Pallerla Sravan Kumar. PW.3: Miryala Raji Reddy. PW.4: Beesu Sunitha @ K.Sunitha. PW.5: V.Surender, Inspector of Police. PW.6: G.Narender, Inspector of Police. PW.7: T.Karnakar Rao, Inspector of Police.
EXHIBITS MARKED
FOR THE PROSECUTION: FOR THE DEFENCE :
Ex.P1 : Complaint.-Nil- Ex.P2 : Two Passbooks with Account No.127289. Ex.P3 : Passbook with Account No.128001. Ex.P4 : Passbook with Account No.128259. Ex.P5 : Ledger sheet of account No.127289 containing 4 papers. Ex.P6 : Ledger sheet of account no.128001 containing 1 paper. Ex.P7 : Ledger sheet of account No.128259 containing 1 paper. Ex.P8 to P10 are withdrawal forms pertaining to account No.127289. Ex.P11 to P14 are the withdrawal forms pertaining to account No.128001. Ex.P15 to P17 are the withdrawal forms pertaining to account No.128259. Ex.P18 : Backup of Sanchaya post software in CD form. Ex.P19 : Covering letter addressed to Inspector of Police, Karimnagar I Town PS, under which original head post ofifce summary sheets of Karimnagar HO were submitted. Ex.P20 : HO summary dated 25.02.2012 containing 3 papers. Ex.P21 : SB List of transactions, dated 25.02.2012, containing 3 papers.
Fair17 of 17CC no. 507 of 2014
Ex.P22 : HO summary dated 12.03.2012 containing 3 papers. Ex.P23 : SB List of transactions, dated 12.03.2012, containing 2 papers. Ex.P24 : HO summary dated 14.03.2012 containing 3 papers. Ex.P25 : SB List of transactions, dated 14.03.2012, containing 2 papers. Ex.P26 : HO summary dated 28.03.2012 containing 3 papers. Ex.P27 : SB List of transactions, dated 28.03.2012, containing 2 papers. Ex.P28 : HO summary dated 21.04.2012 containing 3 papers. Ex.P29 : SB List of transactions, dated 21.04.2012, containing 2 papers. Ex.P30 : HO summary dated 24.04.2012 containing 3 papers. Ex.P31 : SB List of transactions, dated 24.04.2012, containing 2 papers. Ex.P32 : HO summary dated 24.04.2012 containing 3 papers. Ex.P33 : SB List of transactions, dated 25.04.2012, containing 2 papers. Ex.P34 : HO summary dated 19.05.2012 containing 2 papers. Ex.P35 : SB List of transactions, dated 19.05.2012, containing 2 papers. Ex.P36 : HO summary dated 02.08.2012 containing 3 papers. Ex.P37 : SB List of transactions, dated 02.08.2012, containing 2 papers. Ex.P38 : HO summary dated 16.08.2012 containing 4 papers. Ex.P39 : SB List of transactions, dated 16.08.2012, containing 3 papers. Ex.P40 : HO summary dated 27.12.2010 containing 4 papers. Ex.P41 : SB List of transactions, dated 27.12.2010, containing 2 papers. Ex.P42 : HO summary dated 18.07.2011 containing 4 papers. Ex.P43 : SB List of transactions, dated 18.07.2011, containing 3 papers. Ex.P44 : HO summary dated 18.11.2011 containing 3 papers. Ex.P45 : SB List of transactions, dated 18.11.2011, containing 2 papers. Ex.P46 : HO summary dated 25.12.2011 containing 3 papers. Ex.P47 : SB List of transactions, dated 27.12.2011, containing 2 papers. Ex.P48 : HO summary dated 09.01.2012 containing 3 papers. Ex.P49 : SB List of transactions, dated 09.01.2012, containing 3 papers. Ex.P50 : HO summary dated 25.01.2012 containing 3 papers. Ex.P51 : SB List of transactions, dated 27.01.2012, containing 3 papers. Ex.P52 : HO summary dated 09.02.2012 containing 3 papers. Ex.P53 : SB List of transactions, dated 09.02.2012, containing 2 papers. Ex.P54 : CDF panchanama by PW3. Ex.P55 : 161 Cr.P.C. statement of PW4. Ex.P56 : First Information Report (FIR) by PW5.
MATERIAL OBJECTS
- NIL -
II Addl. Junior Civil Judge-cum- II Addl. Judl. Magistrate of F.C., Karimnagar.