JUDGMENT :

Harkesh Manuja, J. (Oral) - CRM-26578-2023

Application is allowed, as prayed for, subject to all just exceptions. Exemption from filing certified / typed copies of Annexures P-1 to P-12, is granted.

MAIN CASE

The petitioner, by way of present petition filed under Section 438 Cr.P.C., prays for grant of pre-arrest bail in case FIR No. 0042, dated 01.04.2023, under Sections 406, 420 & 120-B of IPC, registered at Police Station Central Sector-17, Chandigarh, wherein he being a borrower / lender of the complainant-Bank has been arrayed as an accused for having played a fraud by diversion of funds from Cash Credit (CC) Limit to personal accounts, misappropriating the hypothecated stock as well as not even having installed the machinery purchased against Term Loan, at the proposed site, besides defalcation of Term Loan obtained for purchase of land for setting up of rice mill, instead of paying the same to his vendor-seller.

2. Learned counsel for the petitioner submits that from a perusal of the contents of FIR, no offence as alleged is made out as the present is at best a case of non-return of the loan amount in time, thereby involving no criminality therein. He further submits that vide order dated 12.07.2023 passed by this Court, the petitioner was directed to join investigation with further stipulation that he would get the machinery inspected from the Investigating Officer in association with the Bank officials, as also to produce the details regarding purchased stocks and file an affidavit giving details of his personal assets and in pursuant thereof, a joint inspection in the presence of the officials of complainant-Bank was even carried out on 23.08.2023, wherein and the machinery purchased against the Term Loan availed for the said purpose was found installed at one another unit being run by the petitioner in the name of M/s. H.S. Rice & General Mills, Madhir Road, Village Husnar, Tehsil Giddarbaha, District Sri Muktsar Sahib, however, instead of the site in question, been purchased against the Term Loan obtained from the complainant-Bank. It is further submitted that the petitioner has even been granted No Objection Certificate from the other lender, i.e. the Canara Bank qua M/s. H.S. Rice & General Mills. He also submits that as regards the stock hypothecated with the complainant-Bank, vide application bearing CRM-35787-2023, relevant documents in the shape of bills have been produced on record as Annexure P-14, which belies the allegations against the petitioner of having misappropriated the Cash Credit Limit obtained in this regard. With regard to the diversion of funds from the Cash Credit Limit to the personal accounts, it has been explained that the same was done just to discharge the liability towards the labour, who were retained under the hope of setting up and running of the unit and there was no mala fide behind it. He also submits that the petitioner has already joined the investigation and cooperating therein; thus, his custodial interrogation is not required and even a sum of Rs. 25,00,000/- has also been deposited by the petitioner with the complainant-Bank, so as to prima facie show his bona fide.

2.1 Learned counsel for the petitioner further points out that there was no mala fide intent on the part of petitioner as the revenue records qua the land purchased by the petitioner never reflected any amount due towards the PUNGRAIN or any other agency, which fact was even got verified by the officials of the Bank before granting loan. He submits that in fact, there was a fraud played upon the petitioner by the previous owner which led him to the present situation and a complaint dated 28.10.2022 (Annexure P-4) in this regard was also made to the police official against the previous owner, however, no action was taken thereupon and therefore, before filing of the present petition, an application / petition under Section 156(3) Cr.P.C. was also filed against the previous owner by the petitioner which was pe