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2023 Supreme(MP) 1013

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
VISHAL DHAGAT, J.
ANAND KUMAR MISHRA – Petitioner
Versus
STATE OF M.P. – Respondent
M. Cr. C. No. 27252 of 2023
Decided On : 05-09-2023

Advocates:
Advocate Appeared:
For the Petitioner: Anoop Nair.
For the Respondents: V.V.R. Daniel, Narendra Chourasia.

Headnote:(A) Code of Criminal Procedure - Section 439(2) - Cancellation of bail - Application filed by the President of a cooperative society for cancellation of bail granted to the ex-President of the society for embezzlement of Rs. 02,75,12,450/- - Court found that the trial court granted bail based on an erroneous assumption regarding the amount embezzled, failing to consider the audit report listing a larger amount - (Paras 1, 4, 16)

(B) Definition of ‘victim’ under Section 2(wa) of the Cr.P.C. - The applicant does not qualify as a victim, lacking locus standi to seek bail cancellation - (Paras 12, 13)

(C) Judicial review of bail orders - Court held that bail can be cancelled without supervening circumstances if illegality is established - (Paras 14, 15)

Facts of the case:
Petition for bail cancellation filed due to the alleged fraud and embezzlement of funds by the respondent, highlighting discrepancies in the trial court's consideration of the audit report and the actual embezzled amount.

Findings of Court:
Court cancelled bail based on serious nature of the charges and failure of the trial court to consider the full extent of the embezzlement.

Issues: Whether the bail granted by the trial court was perverse and resulted in miscarriage of justice, and whether the applicant had locus standi.

Ratio Decidendi: The court reaffirmed the jurisdiction to cancel bail when significant relevant material is overlooked and clarified that the applicant’s lack of victim status does not inhibit the court from addressing improper bail grants.

Result: Bail granted to respondent No. 2 is cancelled; respondent to be arrested.

Table of Content
1. bail cancellation application under section 439(2) (Para 1 , 2)
2. arguments regarding bail maintainability and definition of victim (Para 3 , 4)
3. assessment of trial court's judgment on bail (Para 5 , 6 , 7)
4. details of loan sanctioned and embezzlement (Para 8 , 9 , 10 , 12)
5. power of high court regarding bail cancellation (Para 13 , 14)
6. cancellation of bail based on ignored evidence and seriousness of offense (Para 16 , 17)
7. final order and disposal of mcrc (Para 18 , 19)

ORDER :

1. Applicant has filed this application under section 439(2) of the Code of Criminal Procedure for cancellation of bail granted to respondent No. 2 by trial Court vide order dated 31-3-2023 (Annexure-A/1) in connection with Crime No. 144/2023 registered at Police Station-Ranjhi, District-Jabalpur (MP) for committing offence under sections 408, 409, 420, 467, 468, 471, 120-B, 34 of the IPC.

2. Learned counsel appearing for the applicant submitted that applicant is President of COD Karmachari Sahakari Samiti (Maryadit) Jabalpur (MP). Respondent No. 2 was Ex-president of society. Respondent No. 2 along with cashier Suresh Shah and Manager Umesh Katare committed fraud by embezzling money from society. Loan was given by society to various members. On investigation it was found that loan was sanctioned in name of members who have never applied for loan and they were not given loan amount. Deputy Registrar Co-operative Society found that in financial year 2021-2022 accused persons have embezzled an amount of Rs. 02,75,12,450/-. Investigation is going on in the case. It is submitted that trial Court has granted bail to respondent No. 2 on condition of deposit of Rs. 14,75,000/-. In FIR allegations were made regarding said amount and complaint at that time was made only by four employees. Correct facts were not brought before trial Court and report of Deputy Registrar, Cooperative Society was not considered. In these circumstances, prayer is made for cancellation of bail granted to respondent No. 2.

3. Learned counsel appearing for respondent No. 2 submitted that application for cancellation of bail under section 439(2) of the Cr.P.C. is not maintainable as no supervening circumstances was mentioned by applicant. It is submitted that as per applicant’s case trial Court granted bail considering the amount of defalcation only to be Rs. 14,75,000/- but embezzlement was of much larger amount which was overlooked. It is submitted that such submissions of applicant are incorrect. Report of Registrar Narendra Sonkar is dated 27-2-2023 and was prior to registration of FIR. Sessions Judge has given categorical finding and has referred to audit report given by Narendra Sonkar. Overleaf of audit report categorically states entire amount of defalcation to be Rs. 02,75,12,450/- therefore, entire facts has been considered by trial Court. It is further submitted that present applicant is not having any locus to file application for cancellation of bail. Applicant before this Court is not victim.

4. Definition of ‘victim’ as per section 2(wa) of the Cr.P.C. is quoted as under:

    “Section 2 (wa): Definition of victim. “victim” means a person who has suffered any loss or injury caused by reason of the act or omission for which the accused person has been charged and the expression “victim” includes his or her guardian or legal heir.”

    As per said provision, applicant does not fall within the definition of victim. Applicant is settling personal score with respondent No. 2. Reliance is placed on paragraph No. 10 of the judgment reported in Myakala Dharmarajam vs. State of Telangana , (2020) 2 SCC 743 which is quoted as under:

    “10. Having perused the law laid down by this Court on the scope of the power to be exercised in the matter of cancellation of bails, it is necessary to examine whether the order passed by the Sessions Court granting bail is perverse and suffers from infirmities which has resulted in the miscarriage of justice. No doubt, the Sessions Court di

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