JUDGMENT :

1. Apprehending the arrest, the applicants herein seek pre-arrest bail in connection with FIR being CR. No. I. 41 of 2019 registered with Bhadarva Police Station, Dist.: Vadodara for the offences punishable under Section 120B, 420, 406 and 114 of IPC.

2. Facts and circumstances giving rise to present application is that, the complainant is one of the Directors of M/s. Manpasand Beverages Ltd.(herein after referred to as M/s. MBL for short). In the 2019, the complainant company was in dire need of financial assistance to come out of the situation, as company was facing huge tax amount of illegal tax credit. The accused no.1 Bharat Patel, at relevant point of time, was Director of non-banking Finance Company, M/s. Finquest Financial Solutions Pvt. Ltd., agreed to sanction term loan of Rs.100 crores subject to creating security on all assets of the company for which the complainant agreed to create the security as stipulated in favour of FFSPL Company. It is alleged in the FIR that the accused Bharat Patel and others misused terms and conditions of agreement and disbursed only Rs. 9 crore, with object to take over the company and its properties worth approximately Rs.1000 crores. It is alleged that the accused company nominated 3 persons as Directors of the Board of M/s. MBL and took complete control of its management, mortgaged properties of the company, causing a loss to the tune of Rs.1000 crore and also illegally raised call option to purchase equity shares of the company with BSE and SEBI for purchase of 50% equity @ of 10 paisa per share, causing a loss to the complainant. It is alleged that the complainant when offered to repay Rs.9 crore and asked the accused to release the management and control of the company, then, they demanded Rs.20 crore. In this background facts, the FIR for the acts of cheating, criminal breach of trust and criminal conspiracy came to be registered against in all 7 persons.

The applicants herein have been arraigned as accused no. 1, 2, 3, 4 and 5 in the alleged FIR.

During the proceedings of this petition, the principal accused Bharat Patel is passed away.

The applicants have approached the Sessions Court seeking anticipatory bail and same was rejected by the learned Sessions Judge. Vadodara.

3. Heard Mr. N.D. Navavati, learned Senior advocate assisted by Mr. Rahul Dholakia, learned advocate for the applicant. Learned Senior counsel submitted the following submissions :-

i) Despite the fact that disbursement of loan amount was to be made only after due diligence, the company had considered the acute urgency of the company and accordingly, pay Rs.9 crore. Drawing the attention of this court towards, Charter Accountant's report, the company could not disburse the remaining amount of loan as agreed between the parties. In this context, it is submitted that there is no any malafide intention on the part of the accused, as alleged by the complainant.

(ii) Prior to the FIR, the complainant moved an application before the National Company Tribunal, Ahmedabad for various reliefs for pressurizing the applicants.

(iii) The FFSPL filed Commercial Arbitration Petition before the High Court of judicature at Bombay against the complainant company.

(iv) The complainant company filed suit for declaration and permanent injunction before the Civil Court, Vadodara asking various reliefs, including the relief to declare the loan agreement is null and void.

(v) In the aforesaid contentions (i) to (iv), it is submitted that the transactions as alleged, is purely a business transaction and contractual nature, without there being any intention, and therefore, prima-facie, no offence under Sections 406, 420 is made out.

(vi) Placing reliance on the final summary report submitted by the Economic Office Unit- VI, GC- 4, Mumbai. It is submitted that the son of the complainant, Abhishek Singh, had filed complaint against the accused Bharat Patel and others under Sections 406, 420 alleging similar kind of allegations, made here