What is the personal liability of a person in bank?

My friend Worked with X Bank where he was the Authorised Signatory whose signatures were accepted by RTO for issuing NOC and the other documents where Bank X and RTO are involved.
There was a case where two persons (A& B) of the same name availed Auto Loan at the same time. Person A paid his loan and got NOC from Bank in year 2007. Person B became defaulter but due to bank error at the initial level the person A's vehicle no was entered in Person B Loan no. When the person B was contacted by Bank for his dues he was not contactable and the finally Bank's recovery agent took the vehicle of B in their custody in 2010 (actually Vehicle was of A who has already received NOC in 2007). Meanwhile the bank has finally sold the Vehicle to some other person after they transferred the vehicle in the Bank's name.
Person A has filed FIR against the bank & recovery agents.

Now Police is framing the case under section 382 against collection manager and my friend who was the Authorized signatory in X bank.

Since the vehicle was wrongly updated in the defaulter person's Loan no. There was no malafied intention of collection manger and my friend. It was the bank error at the initial stage while inputting the data in their books. What is the personal liability of a person in this case where everything was done as what was available in system?