BAIL APPN. NO. 4380/2021 Page 1 of 32

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IN THE HIGH COURT OF DELHI AT NEW DELHI

%

Reserved on: 21^stJanuary, 2022

Pronounced on: 7^th February, 2022

+

BAIL APPN. NO. 4380/2021 & CRL M.A. 20043/2021

VIKAS CHAWLA

..... Petitioner

Through:

Mr. Vikas Pahwa, Sr. Advocate

with Mr. Sumer Singh Boparai,

Mr. Abhishek Pati, Mr. Sidhant

Saraswat and Mr. Shadman

Siddiqui, Advocates

versus

STATE OF NCT OF DELHI

..... Respondent

Through:

Ms. Kusum Dhalla, APP for State

Mr. Tushar Jarwal, Mr. Rahul Sateeja,

Mr. Ambar Bhushan and Mr. Anurag

Soan,

Advocates

for

BMW

Finance/Complainant

Mr. Kunal Tandon and Mr. Chetan

Roy, Advocates for HDFC Bank/

Complainant

CORAM:

HON’BLE MR. JUSTICE CHANDRA DHARI SINGH

J U D G E M E N T

(THROUGH VIDEO CONFERENCING)

CHANDRA DHARI SINGH, J.

1.

The present application has been filed under section 439 of the

Code of Criminal Procedure, 1973 on behalf of the petitioner/applicant

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BAIL APPN. NO. 4380/2021 Page 2 of 32

praying for regular bail in FIR bearing No. 043/2021 registered at

Police Station EOW Mandir Marg for the offences punishable under

Sections 406/420/120B of the Indian Penal Code, 1860.

FACTS

2.

As per the FIR the prosecution story is as follows:

a)

In the year, 2014, Mr. Vikas Chawla and Ms. Pooja

Chawla, Directors of Auto Web Performance Cars Private

Limited (hereinafter, "Auto Web") approached the Complainant

at the office of HDFC Bank Limited at 2nd Floor, Indian

Express Building, Bahadur Shah Zafar Marg, New Delhi-

110002 for the grant of Credit Facilities in the nature of

Inventory Funding and Cash Credit Limits ("CC Limit") by the

Complainant. It was represented that Auto Web was the

'Authorized Dealer’ of Hyundai (having dealership code

(Hyundai): N1215) and engaged in the business of 'sales' and

'service' of vehicles manufactured by Hyundai since the year

2013.

b)

On the basis of the request and representation made by

Mr. Vikas Chawla (director of Auto Web) and Ms. Pooja

Chawla and the documents submitted by them, the Complainant

processed and sanctioned the above-mentioned credit facilities

to Auto Web, vide Sanction Letter dated 9^th January, 2014.

Consequent thereto, Loan Agreement dated 9^th April, 2014 was

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BAIL APPN. NO. 4380/2021 Page 3 of 32

executed between the Complainant and Auto Web, in relation to

the above-mentioned facilities.

c)

Mr. Vikas Chawla/Petitioner herein signed the loan

agreement in the capacity of Director of Auto Web Performance

Cars Private Limited. The stocks of the vehicles (inventory)

were the primary security of the complainant, in addition to the

cross collateral (i.e., immovable property). Accordingly, from

time to time, on the request of Vikas Chawla, and Ms. Pooja

Chawla,

Directors,

existing

facilities

were

modified/enhanced/renewed and other facilities were granted,

on the basis of the documents (financial statements like balance-

sheet, board resolutions, collateral security documents), to

Auto-Web. Last renewal of the facilities was done by the

complainant on 26^th June, 2019. Pertinently, in all the financial

statements (balance-sheets) submitted by Auto Web, it was

shown that Auto Web was generating profits.

d)

As per the last enhancement/renewal, on 26^thJune, 2019

the complainant had sanctioned Rs. 15.00 crores towards

Inventory funding, Rs. 1.50 crore as CC Limit and adhoc limits

of Rs 3.50 crore to Auto Web (Through its Director, Mr. Vikas

Chawla and Ms. Pooja Chawla) duly utilized said limits

sanctioned by the complainant.

e)

The purpose of availing the credit facility (inventory

funding) as represented was to fund the inventory/stock to be

purchased