JUDGMENT :

Chittaranjan Dash, J.

1. By means of this application, the Petitioner seeks to quash the FIR under Annexure-1 and the further proceeding in G.R. Case No.468 of 2015 pending before the learned S.D.J.M., Karanjia.

2. The background facts of the case are that the Petitioner had availed a cash credit loan of Rs.47.00 lakhs and Term Loan of Rs.57.00 lakhs, thus a total loan of Rs.1.04 Crores, from the Mayurbhanj Central Co-operative Bank Ltd., Karanjia Branch for installation of a cold storage under the name and style of M/s. Allied Cold Storage Pvt. Ltd. The Petitioner in order to create the loan furnished landed properties with building as collateral security besides mortgaging the plant and machineries in favour of the Bank. The Petitioner, being the Managing Director of the cold storage, executed necessary bonds In this regard to secure the loan in favour of the Bank. However, the Petitioner defaulted in the repayment of loan which remained outstanding to the tune of Rs. 5,92,91,076/- as an 31.07.2015. The Branch Manager, Central Co- operative Ltd., Mayurbhanj, lodged an FIR against the Petitioner, alleging that the Petitioner did not clear the outstanding dues to the Bank and instead sold out the mortgaged properties vide sale deed dated 29.07.2015, ignoring the restrictions in selling the mortgaged properties. On the basis of the complaint, the Karanjia P.S. Case No.160 of 2015 was registered against the Petitioner. The Petitioner assails the proceeding in the criminal case pursuant to the FIR lodged by the Branch Manager, Central Co-operative Ltd., Mayurbhanj, primarily on the ground that the dispute between the Parties are civil in nature pertaining to non-payment of outstanding dues and there is no criminality involved in it. According to the Petitioner, the Bank had sent a notice on 24.08.2015, requiring the Petitioner to clear the outstanding dues to the tune of Rs.5,92,91,076/- with interest within three days. As the Petitioner failed to repay the loan within the said stipulated time, the Bank lodged the FIR. It is further case of the Petitioner that she responded to the notice of the Bank vide her letter dated 16.01.2007, whereupon the Bank had invited application for settlement of the loan accounts under OTS. The Registrar of Co- Operative Society, Odisha also called for a report on the OTS proposal submitted by the Petitioner but the Bank did not place any report. Again in the year 2010, a fresh proposal for OTS was invited and the Petitioner, being the loanee, submitted application for settlement of the loan account but such proposal submitted was also not considered and no communication was made in that regard. According to the Petitioner, it is because of the latches on the part of the Bank, the outstanding dues escalated to Rs.5,92,91,076/-. The Petitioner further submits that in order to secure the loan, she had mortgaged the property in question and had also executed mortgaged bond dated 07.04.1998, and one of the covenants of the said mortgaged bond reads as follows:-

“The Mortgagor agrees that in case the mortgaged properties is sold or re-mortgaged or given on will or transferred by any other means, the Mortgagee Bank without following the terms of repayments, shall recall the entire outstanding amount with interest at the rate of 18½ % per annum along with other expenses etc. till to the date of full realisation”.

3. According to the Petitioner, she not only submitted a proposal for OTS with the Bank but also made representations before various authorities of the Government, whereupon the Registrar, Co- operative Society, vide letter dated 22.07.2009, directed the