Kerala High Court
P.N.Suresh Kumar vs State Of Kerala on 24 September, 2025
2025:KER:71213
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE A. BADHARUDEEN
WEDNESDAY, THE 24TH DAY OF SEPTEMBER 2025/2ND ASWINA, 1947
CRL.MC NO. 3477 OF 2025
CC NO.2 OF 2024 OF COURT OF ENQUIRY COMMISSIONER &
SPECIAL JUDGE, EKM AT MUVATTUPUZHA
PETITIONERS/ACCUSED:
1 P.N.SURESH KUMAR
AGED 62 YEARS
S/O.NEELAKANDA MARAR, (ID NO. 2053), AWC-1,
SHOP-IN-CHARGE, FL-1-7051, KSBC, VELLOORKUNNAM,
MUVATTUPUZHA (RETIRED), RESIDING AT RAJBHAVAN
HOUSE, RANDARKARA, MUVATTUPUZHA,
ERNAKULAM., PIN - 685602
2 SREERAG R.
AGED 45 YEARS
S/O.RAJASEKHARAN, (ID NO. 12111),
AWC-2, FL-1-7051, KSBC, RANDARKARA,
MUVATTUPUZHA, ERNAKULAM, RESIDING AT
EDAMATTATHUKUNNEL (H), TRIKKALATHOOR P.O.,
MULAVOOR VILLAGE, MUVATTUPUZHA TALUK,
ERNAKULAM DISTRICT., PIN - 683557
3 K.J.THOMAS
AGED 63 YEARS
S/O.K.D.JOSEPH, (ID NO. 2563), AWC-1, FL-1-7051,
KSBC, RANDARKARA, MUVATTUPUZHA, ERNAKULAM,
RESIDING AT KANDATHIL HOUSE, PERUMBAVOOR P.O.,
PANDARIMALA, MARADI, MUVATTUPUZHA,
ERNAKULAM DISTRICT., PIN - 683542
4 DEEPUMON K.T
AGED 45 YEARS
S/O.THANKAPPAN, (ID NO. 12101), AWC-2, FL-1-
7051, KSBC, RANDARKARA, MUVATTUPUZHA, ERNAKULAM,
RESIDING AT KOCHUKUNNEL HOUSE, MEMADANGU P.O.,
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
2
ARAKKUZHA VILLAGE, MUVATTUPUZHA, ERNAKULAM
DISTRICT., PIN - 686672
BY ADV SRI.MATHEW KURIAKOSE
RESPONDENTS/STATE & DE FACTO COMPLAINANT:
1 STATE OF KERALA
REPRESENTED BY PUBLIC PROSECUTOR, HIGH COURT OF
KERALA, ERNAKULAM., PIN - 682031
2 THE WAREHOUSE MANAGER
KERALA STATE BEVERAGES (M&M) CORPORATION LTD.
(BEVCO), WAREHOUSE, VENGOLA, PERUMBAVOOR,
ERNAKULAM DISTRICT, PIN - 683556
SRI.RAJESH.A, SPECIAL PUBLIC PROSECUTOR, VACB,
SMT.REKHA.S SENIOR PUBLIC PROSECUTOR, VACB,
SMT. NAVEEN.T,SC FOR KERALA STATE BEV.CO.M . AND
M.
THIS CRIMINAL MISC. CASE HAVING COME UP FOR
ADMISSION ON 17.09.2025, THE COURT ON 24.09.2025 PASSED
THE FOLLOWING:
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
3
CR
ORDER
Dated this the 24th day of September, 2025
Accused Nos.1, 2, 5 and 6 in C.C.No. 2/2024, on the
files of the Enquiry Commissioner and Special Judge,
Muvattupuzha, have preferred this Criminal Miscellaneous
Case under Section 528 of the Bharatiya Nagarik Suraksha
Sanhita, 2023 (hereinafter referred to as 'BNSS' for short),
seeking the following prayer:
"to quash Annexure C Final Report in Crime
No. 01/2021 CRE of VACB Central Range in
Ernakulam District and proceedings in C.C. No.
02/2024 before the Court of the Enquiry
Commissioner and Special Judge, Muvattupuzha as
against the Petitioners/ Accused Nos. 1,2, 5 & 6."
2. Heard the learned counsel for the petitioners
and the learned Public Prosecutor, representing the VACB.
Also heard the learned Standing Counsel, representing the 2 nd
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
respondent, the Warehouse Manager, the Kerala state
Beverages (M&M) Corporation Limited (BEVCO).
3. As per the final report, the prosecution case
is that the 1st accused, Sri. P.N. Suresh Kumar, while working
as the Shop-in-Charge and the 2nd accused, Sri. Sreerag.R,
the 3rd accused, Sri. Praseed.K.P, the 4th accused, Sri.
Mathew Jacob, the 5th accused, Sri. K.J. Thomas and the 6th
accused, Sri.Deepumon.K.T while working as staff of FL-01-
7051 Muvattupuzha Beverages outlet under Kerala State
Beverages Corporation and as such being public servants,
abused their official position as public servants, shared a
common intention and with dishonest intention,
misappropriated the stock of foreign liquor under their control
to the tune of Rs.27,92,523/- (Rupees twenty seven lakh
ninety two thousand five hundred and twenty three only) and
converted for their own use and hence committed criminal
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
misconduct by corrupt and illegal means and caused wrongful
loss of Rs.27,92,523/- to the Govt.Exchequer and
corresponding pecuniary gain to the accused persons as they
have collective responsibilities upon the entrusted stock of
foreign liquor. As the period of commission of offence was in
between 01.04.2018 to 30.07.2018, both the Prevention of
Corruption Act, 1988 (hereinafter referred to as 'PC Act, 1988'
for short) and Prevention of Corruption (Amendment) Act,
2018 (hereinafter referred to as 'PC (Amendment) Act, 2018'
for short) w.e.f 26.07.2018 are applicable in this case. But in
the case of the 6th accused/Sri.Deepumon, who relieved from
the outlet on 20.05.2018, cannot come under the purview of
the PC (Amendment) Act, 2018. Therefore, accused Nos.1 to
5 have committed offences punishable under Section 13(1)(c)
r/w Section 13(2) of PC Act 1988, Section 13(1)(a) of PC
(Amendment) Act, 2018 and Sections 403,409,420 and 34 of
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
the Indian Penal Code (hereinafter referred to as 'IPC' for
short) and the 6th accused has committed offences punishable
under Section 13(1)(c) r/w Section 13(2) of the PC Act, 1988
as well as under Sections 403, 409, 420 and 34 of IPC.
4. It is submitted by the learned counsel for the
petitioners that, on finding shortage in stock of the foreign
liquor to the tune of Rs.27,92,523/- (Rupees twenty seven lakh
ninety two thousand five hundred and twenty three only) for
the period in between 01.04.2018 to 30.07.2018, acting on the
circular produced as Annexure D, dated 20.12.2017, the
responsible persons, including the petitioners herein, remitted
the amount. According to the learned counsel for the
petitioners, the petitioners have remitted the amount due in
accordance with Annexure D circular. It is pointed out by the
learned counsel for the petitioners further that, it is very
common in KSBC outlets to find discrepancies in the
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
stock/amount due to the voluminous work and the peculiarities
in procuring and keeping the stock, sales and accounting; and
also due to the delay in stock verification and audit. Therefore,
the Corporation issued Circular dated 20.12.2017 and earlier
circulars, fixing the proportion in which the amount is to be
recovered from the staff. According to the learned counsel for
the petitioners, the petitioners did not commit any offences, as
alleged by the prosecution, since they remitted the amount on
finding the shortage without fail. Therefore, the prosecution as
against the petitioners is unwarranted and in such view of the
matter, quashment prayer is liable to succeed. The learned
counsel for the petitioners fairly submitted further that the
legality of Annexure D circular No.KSBC/1A/042/2017-18
dated 20.12.2017 was considered by the Division Bench of
this Court in WA No.642/2025 dated 22.08.2025 and the order
of the learned Single Judge, setting aside Annexure D order,
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
was confirmed by the Division Bench and therefore, Annexure
D circular is not in force now. According to the learned counsel
for the petitioners, even though the remittance was prior to the
judgment, the prosecution as against the petitioners would not
result in conviction.
5. The learned Standing Counsel appearing for
the 2nd respondent also conceded the judgment in WA
No.642/2025 and he has placed order of this Court in
Crl.M.C.No.5022/2025, on the submission that in the said case
also, this Court considered facts similar to the facts dealt in
this case while disallowing the quashment. According to the
learned Standing Counsel for the 2nd respondent,
misappropriation was completed before remittance of the
money adjusting the shortage in stock and thereby, the
offences alleged are completed, for which the prosecution of
the petitioners is necessary. Therefore, the quashment cannot
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
be considered.
6. Sharing the argument of the learned
Standing Counsel for the 2nd respondent, the learned Public
Prosecutor placed the case diary as such for perusal of this
Court and submitted that mere repayment of the amount
alleged to be misappropriated would not efface the criminal
case since the ingredients of the offenses were made out and
completed prior to repayment.
7. While addressing the rival submissions, as
pointed out by the learned counsel for the petitioners, FIR was
registered acting on a complaint lodged by one Arun K.M., the
Manager, BEVCO, Vengola, Perumbavoor, to the Station
House Officer, Muvattupuzha, disclosing the misappropriation
of foreign liquor from the shop coming to the tune of
Rs.27,92,523/- for the period in between 01.04.2018 and
30.07.2018. Annexure A is the complaint. In Annexure A
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
complaint, it has been disclosed that Rs.5,17,346/- was paid
by Sri.P.N.Sureshkuamar, Sri.K.J.Thomas and Sri.Sreerag.R.
Similarly, Sri.Deepumon K.T. paid Rs.3,05,793/-. Annexure A
in no way would suggest when these payments were remitted.
Annexure A complaint further discloses that a total amount of
Rs.8,34,692/- is payable by Sri. Praseed K.P. (Rs. 3,17,346/-)
and Sri. Mathew Jacob (Rs. 5,17,346/-).
8. The crucial question to be decided herein is
as to whether repayment of the amount of misappropriation or
the value of the misappropriation of the articles would efface
the criminal prosecution so as to quash the same.
9. According to the learned counsel for the
petitioners, delay in stock verification and audit of the stock in
BEVCO outlets would result in finding the shortage at a later
stage and only on finding the shortage, the opportunity to
adjust the shortage would come. Therefore, in the instant
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
case, on finding the shortage, the petitioners remitted the
amount in tune with the ratio fixed as per Annexure D circular.
Therefore, it cannot be safely concluded that the petitioners
had the intention to commit the crime.
10. On scanning the prosecution allegations, it is
confined to the misappropriation of foreign liquor amounting to
Rs. 27,92,523/-. The figure would go to show that the foreign
liquor found in shortage is a gigantic quantity not a lesser
quantity. Therefore, prima facie, it cannot be held that the
shortage in stock of the foreign liquor occurred because of
some unintentional omissions or oversights. When the
shortage of foreign liquor is to the tune of Rs.27,92,523/-, a
very gigantic quantity, intentional misappropriation of the same is
foreseeable with the active participation of the accused persons.
To put it otherwise, when a large portion of the stock was
misappropriated, it should not happen without any intentional
acts of the accused who were the custodian of the stock.
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
Similarly, the repayment of the amount without any interest for the
same was done at a much belated stage and the accused
persons enjoyed the benefits of misappropriation in between the
period of misappropriation and the remittance of the value for the
same. Therefore, the contention raised by the learned counsel for
the petitioners, that, it is very common in BEVCO outlets to find
discrepancies in the stock/amount due to the voluminous work
and the delay in stock verification, cannot be accepted as an
explanation for this huge shortage. Thus, in the facts of the case
involving misappropriation of huge quantity of foreign liquor, mere
repayment of the amount of the misappropriated foreign liquor by
the accused persons, on finding the huge misappropriation at a
belated stage itself, would not efface their criminal prosecution.
Therefore, quashment of a serious case of this nature, merely on
the ground that value for misappropriated foreign liquor was
repaid, would not sustain as the matter would require framing of
charge and trial of the accused persons. In view of the above
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
finding, quashment sought for in the instant case would not
succeed.
In the result, this petition fails and is dismissed
accordingly,
Interim order of stay, if any, granted by this Court
stands vacated.
Registry is directed to forward a copy of this order to the
Special Court forthwith.
Sd/-
A. BADHARUDEEN
JUDGE
nkr
2025:KER:71213
CRL.M.C.NO.3477 OF 2025
PETITIONER ANNEXURES
ANNEXURE A TRUE COPY OF THE FIR AND FIS IN CRIME
NO.469/2019 OF MUVATTUPUZHA POLICE
STATION
ANNEXURE B CERTIFIED COPY OF THE FIR IN CRIME NO.
01/2021 CRE OF VACB CENTRAL RANGE
ANNEXURE C CERTIFIED COPY OF THE FINAL REPORT IN
CRIME NO.01/2021 CRE OF VACB CENTRAL
RANGE
ANNEXURE D A TRUE COPY OF THE CIRCULAR DATED
20.12.2017 ISSUED BY THE MANAGING
DIRECTOR OF THE KERALA STATE BEVERAGES
(MANUFACTURING AND MARKETING)
CORPORATION LTD
ANNEXURE E TRUE COPY OF THE STATEMENT OF MR.
PRINCE K.S. (CW2) IN CRIME NO.01/2021
CRE OF VACB CENTRAL RANGE
ANNEXURE F TRUE COPY OF THE ADDITIONAL STATEMENT
DATED 02.03.2022 OF MR.ARUN, THE FIRST
INFORMANT IN CRIME NO. 01/2021 CRE OF
VACB CENTRAL RANGE
