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2023 Supreme(Guj) 1367

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J. C. Doshi, J.
Nitinbhai Narendrabhai Rajguru – Applicant
Versus
State Of Gujarat – Respondent
R/Criminal Misc.Application (For Cancellation Of Bail) No. 17864 of 2023 With R/Criminal Misc. Application No. 17865 of 2023
Decided On : 29-11-2023

Advocates:
Advocate Appeared:
For the Applicant : Mr Hemant B Raval
For the Respondent: Ms C M Shah, Addl. Public Prosecutor

Cancellation of bail requires substantial grounds indicating misuse or misconduct; mere allegations of injustice without evidence do not suffice for revocation.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 439(2) - Cancellation of bail - Applications filed for the cancellation of regular bail granted to accused in serious economic offences - Allegations of collusion and forgery regarding loan application for a mortgage loan of Rs. 55 lakh - The Sessions Court granted bail citing lack of flight risk and long trial duration as reasons. (Paragraphs 3, 4, 10, 24)

(B) Legal Principles - The court noted that cancellation of bail requires serious infirmities leading to a miscarriage of justice - Bail cannot be cancelled merely because it is claimed to be unjust or illegal without sufficient grounds - Criteria for cancellation include willful misconduct by the accused or new facts emerging post-bail grant. (Paragraphs 18, 26, 20)

Facts of the case:
The first informant lodged an FIR against bank officers for forging signatures to obtain a loan. The accused secured bail despite the serious nature of allegations. (Paragraphs 5, 6, 24)

Findings of Court:
The Sessions Court's discretion was upheld, stating that the petitioner failed to show misuse of bail conditions. The court reiterated that previous decisions indicated grounds for cancellation must be substantial. (Paragraphs 21, 24, 27)

Issues: The primary issue was whether the Sessions Court erred in granting bail given the severity of allegations of economic offences. (Paragraphs 10, 24)

Ratio Decidendi: The court emphasized that bail's nature and the need for substantial grounds for cancellation must be carefully balanced, affirming the principle established in prior precedents regarding the seriousness required for revocation. (Paragraphs 18, 20)

Result: Petitions dismissed; the orders granting bail were upheld.

Table of Content
1. filing for cancellation of previously granted bail (Para 1 , 3 , 4)
2. initial procedural aspects of bail applications. (Para 2)
3. nature of accusations leading to bail applications (Para 5 , 6 , 7)
4. arguments presented by both sides regarding bail cancellation. (Para 8)
5. arguments against the granting of bail (Para 10 , 11 , 12 , 14)
6. reasons assigned by the learned sessions court for bail (Para 15 , 16 , 17)
7. legal standards for cancellation of bail (Para 18 , 20 , 22)
8. criteria for assessing misuse of bail (Para 24 , 25 , 26)
9. final dismissal of bail cancellation petitions (Para 27 , 28)

JUDGMENT :

J. C. DOSHI, J.

1. Rule. Learned APP waives service of rule for the respondent State.

2. Common question of law and facts arise in both the petitions, they are being disposed of by this common order.

3. Both the Criminal Misc. Applications u/s 439(2) of the Code of Criminal Procedure, 1973 have been preferred for cancellation of bail against the orders dated 1.9.2023 passed by the learned City Civil & Sessions Court, Ahmedabad in Criminal Misc. Application No.6940 of 2023 and 6976 of 2023 grating bail to the accused, who are arraigned as accused in the one and same FIR being Part No.A 11191011230216 of 2023 registered with the Ahmedabad City DCB Police Station for the offences punishable u/s 406, 409, 420, 465, 467, 468, 471, 120(B) of the IPC.

4. Criminal Misc. Application Nos.17864 of 2023 and 17865 of 2023 have been filed to cancel the regular bail granted to accused Bimalbhai Parikh and Kinnarbhai Shah respectively by the learned Sessions Court.

5. The facts in nutshell to decide present applications are that the first informant Nitinbhai Rajguru has lodged the aforementioned FIR against the officers of the Colour Merchant Cooperative Bank Ltd., namely, Mr. Atulbhai Shah, Manager, Kinnarbhai Shah, General Manager and Mr. Bimal Parikh, Chairman. The allegations levelled against them in the FIR are that the first informant had applied for loan from the Colour Merchant Cooperative Bank Ltd. This loan was mortgage loan. According to the FIR, all the accused, in connivance with each other, by forging the signature of the first informant as well as guarantor forged the document to obtain top up mortgage loan in tune of Rs.55 lakh and as such, have committed the aforesaid offences.

6. Accused Mr. Bimal Parikh moved Criminal Misc. Application No.6340 of 2023 before the learned Sessions Court for regular bail u/s 439 of the Code. The learned Sessions Court after considering the facts on record, exercised discretion in favour of the accused and enlarged him on regular bail on same terms and conditions as mentioned in the impugned order. These conditions were imposed upon the petitioner on the undertaking given by the accused. Apart from the said conditions, other conditions are also imposed while the accused was enlarged on bail.

7. In same fashion, another accused Mr. Kinnarbhai Shah moved Criminal Misc. Application No.6976 of 2023 before the learned Sessions Court for regular bail u/s 439 of the Code and the learned Sessions Court has granted conditional bail.

8. The first informant being aggrieved by the aforesaid orders, preferred present petitions u/s 439(2) of the Code.

9. Heard learned advocate Mr. HB Raval for the respective petitioner as well as learned APP.

10. What has been argued by learned advocate Mr. HB Raval is that the learned Sessions Court has committed error in granting bail in a serious criminal matters. He would further submit that the learned Sessions Court has ignored the basic principles of grant or refusal of bail in a serious economic offence. He would further submit that the learned Sessions Court has ignored the gravity of the offence while granting bail to both the accused and thereby, serious error has been committed. What more submitted by learned advocate Mr. HB Raval is that the learned Sessions Court has failed to exercise discretion judiciously, cautiously and strictly in compliance with

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