Sinha, J. --1. Leave granted.

2. Appellant-Madhavpura Mercantile Cooperative Bank Ltd. (the Bank) is a banking organisation incorporated and registered under the Maharashtra Cooperative Societies Act. It is now under a reconstruction scheme as contemplated by section 15 (b) of the Multi State Cooperative Societies Act, 1984 (for short, the 1984 Act') since repealed and replaced by the Multi State Cooperative Societies Act, 2002. The said reconstruction scheme was formed as directed by the Ministry of Agriculture, Department of Agriculture and Cooperative of the Government of India.

3. The bank at present is managed by a Board of Management constituted in terms of the said scheme. Indisputably, the Board of Directors of the bank was superseded and an Administrator was appointed by an order dated 15.3.2001 in terms of sub-section (7) of section 58 of the 1984 Act. Allegedly, the Administrator, after his appointment unearthed a large scale scam and defalcation of money made by several persons including the respondents herein by committing fraud of an unprecedented scale to the tune of crores of rupees.

A criminal complaint registered as C.R. 8 of 2003 was filed, inter alia, against the respondents alleging siphoning of the funds by the accused in conspiracy with each other and, thus, they are said to have committed offences punishable under section 406,409,420,467,471 and 120B of the Indian Penal Code. The amount involved in the aforementioned complaint is said to be Rs. 8 crores.

Respondent was arrested on 22.7.2003. He filed an application for grant of bail before the learned Sessions Judge. An affidavit was affirmed on behalf of the appellant opposing the said application wherein it was alleged that the amount involved was Rs. 60 crores and not 8 crores. It was alleged that several other complaint have also been filed against the first respondent. Before the learned Sessions Judge, an offer was made on behalf of the first respondent to make payment of some dues.

The learned Sessions Judge, however, rejected the said prayer for grant of bail, inter alia, opining that as the first respondent in association with the other accused cheated the bank and committed misappropriation, they cannot be directed to be released on bail, stating:

"Due to this reason the academic future of several students was endangered, and many marriages were held-back, auspicious functions were held-up, the treatment of several persons was held-up, there were difficulties in several families. The senior citizens and widowed women were dependant on the interest from the Bank and were maintaining their families, their plain bread got snatched from them. Several families came under grave difficulties. Even at very old age several persons were compelled to start work afresh with new energies, they were subjected to such difficult times; or that those person who could not work they became helpless and dependant. The sole cause behind all this was that Bank Chairman, Manager, Managing Director, a handful of Officers and a handful of investors of the Madhavpura Bank for satisfying their own financial interests, conspired and misappropriated the bank funds. Due to their financial greed, and because of their acts so many people have become paupers. In these circumstances, the cheating of large amount is done and are involved in the conspiracy of misappropriation of the bank funds, if such persons involved in such acts are released on bail then if on release on bail there would definitely be adverse on the Society."

4. The first respondent thereafter filed an application for grant of bail before the High Court. A learned Single Judge of the said Court upon taking into consideration the readiness and willingness on his part to make payment of Rs. 2384 lacs allowed the said application stating that at that stage, it was difficult to positively infer any conspiracy with the Management considering the past transactions. It was, however, noticed:

"However, it w