JUDGMENT

1. Leave granted.

2. This appeal has been filed by the H.D.F.C. Bank Ltd. (hereinafter referred to as the Bank”) against the judgment and order dated 3rd July, 2006, passed by the Madras High Court in Crl.M.P.No.3784 of 2006 and Crl.O.P.No.15217 of 2006, allowing the application filed by the Respondent No.1 under Section 438 of the Code of Criminal Procedure (Cr.P.C.) for grant of anticipatory bail to him.

3. According to the Bank, the Respondent No.1 in his capacity as the Managing Director of the Mannan Construction Corporation Private Limited, a company engaged in the execution of Highway Contracts and contracts of the Public Works Department (hereinafter referred to as “the Company”), along with one M/s. Immanuel projects Private Ltd. applied for a loan of Rs. 2,03,40,000/- (Rupees Two Crores, three lakhs and forty thousand) only, for purchase of 6 Krishna Electronic Sensor Paver Finishers from one M/s. Krishna Engineering Works in Ahmedabad. The said loan was duly sanctioned and after signing of necessary Agreements and other documents, six cheques for the loan amount of Rs.2,03,40,000/-, drawn in the name of M/s. Krishna Engineering Works, were handed over to the