The court clarified that serious allegations of misappropriation against cooperative society officials justified not quashing the FIR, reinforcing the need for investigations in light of potential criminal conduct.

JUDGMENT :

J.C. DOSHI, J.

1. These batch of matters since emanates from the self-same First Information Report and, with the consent of learned advocates appearing for either side, they are heard and decided analogously. Accordingly, the present common order govern the disposal of the entire group of matters.

2. For the sake of convenience, Criminal Misc. Application No.1434 of 2020 is treated as the lead matter for the purpose of delineating the factual matrix.

APPEARANCE:-

3. Learned Advocate Mr. R.D. Kinariwala has appeared on behalf of the petitioner in Special Criminal Application No.1179 of 2020 as well as in Criminal Misc. Application No.1434 of 2020. Learned Advocate Mr. B.T. Rao has represented the petitioner in Criminal Misc. Application No.4205 of 2020. Learned Advocate Mr. H.K. Raval has appeared on behalf of respondent No.2 in all the captioned matters, whereas the respondent–State has been represented by the Learned Additional Public Prosecutor, Mr. Chintan Dave.

BRIEF FACTS OF CR.MA NO.1434 OF 2020:-

4. Shorn of unnecessary details, the facts reveal that the complainant, Jesingbhai Kesarbhai Patel, serving as Vice Chairman of Goral Group Seva Sahkari Mandli Ltd., lodged the impugned FIR alleging large-scale misappropriation of funds by the clerk of the society, namely Hareshbhai Mohanbhai Patel, in collusion with other office bearers. The society, registered under the Gujarat Cooperative Societies Act, 1957, had as its primary object to provide fertilizers, seeds, Kisan Credit Cards, and concessional loans to farmers. An audit conducted at the instance of Sabarkantha District Regional Sahkari Bank revealed that during the years 2017 to 2019, the said clerk misappropriated a sum of Rs.4,72,200/- from stock accounts and further advanced a fraudulent loan of Rs.13,91,896.36/- in the name of his father, leaving an outstanding liability of Rs.14,91,081.39/-. In all, the misappropriation was to the tune of Rs.19,63,281.39/-. It is alleged that the present applicant, being the then Chairman, along with the Secretary, Kaushikbhai Kesarbhai Patel, not only failed to prevent such illegalities despite knowledge thereof but actively abetted and supported the said co-accused in commission of the offences.

4.1. Upon discovery of these irregularities in the audit report dated 06.08.2019, the District Registrar, Cooperative Societies, Himmatnagar, directed the complainant on 21.11.2019 to lodge the FIR within thirty days. Pursuant thereto, the FIR came to be registered against the applicant and other co-accused persons. The applicant, apprehending arrest, unsuccessfully sought anticipatory bail before the Sessions Court, Idar, but was granted relief by this Court vide order dated 13.01.2020 in Criminal Misc. Application No. 577 of 2020. The applicant asserts that, upon learning of the misappropriation, he had already instituted lavad suit No. 281 of 2018 before the Board of Nominees, Mehsana under Section 96 of the Gujarat Cooperative Societies Act seeking recovery of Rs.4,72,200/- from the said clerk. The present petition, therefore, has been filed by the applicant in the aforesaid background.

BRIEF FACTS OF SCR.A NO.1179 OF 2020:-

5. Shorn of unnecessary details, the facts reveal that pursuant to a Circular dated 26.06.2013 issued by the Deputy Secretary, State of Gujarat, it was mandated that in case of any financial irregularities or criminal breach of trust committed in a cooperative society, the principal office bearers were required to initiate prosecution within thirty days, failing which prosecution could also be lodged against such office bearers.