Facts of the Case

The applicant filed the first anticipatory bail application under Section 438 CrPC apprehending arrest in connection with Crime No. 35/2022 registered at Police Station Ratanpur, District Bilaspur.

According to the prosecution, the complainant sought a bank loan to establish a computer and photocopy shop. A quotation for computer equipment was allegedly provided by the applicant, proprietor of S.S. Computer, based on which the bank sanctioned a loan of ₹1,95,000. The sanctioned amount was transferred to the applicant's account for supplying computers, laptops, printers and related items.

It was further alleged that the applicant also collected ₹37,000 in cash towards GST, transportation and miscellaneous expenses but failed to supply the promised articles. After the police initially treated the dispute as non-cognizable, the complainant approached the Magistrate under Section 156(3) CrPC, pursuant to which an FIR was registered for offences under Sections 420, 465, 467, 468, 469, 471 and 34 IPC.

 Issues Involved

  1. Whether the applicant was entitled to anticipatory bail under Section 438 CrPC.
  2. Whether the allegations disclosed a criminal offence warranting custodial interrogation.
  3. Whether the dispute substantially possessed the characteristics of a civil dispute arising out of a commercial transaction.
  4. Whether the applicant was likely to abscond, influence witnesses or interfere with the investigation.

 Petitioner's Arguments

The applicant contended that:

  • He was innocent and had been falsely implicated.
  • The computer equipment had already been supplied to the complainant.
  • The complainant had paid ₹1,95,000 against the total value of ₹2,08,900, leaving the balance unpaid.
  • Before the complainant lodged the criminal complaint, the applicant himself had complained to the bank regarding non-payment of the balance amount.
  • The police had initially found the matter to be non-cognizable and advised the parties to seek appropriate remedies before the competent court.
  • He belonged to a respectable family, had no criminal antecedents, and there was no likelihood of absconding or tampering with evidence.
  • Since the trial would take considerable time, anticipatory bail ought to be granted.

 Respondent's Arguments

The State opposed the anticipatory bail application.

However, the complainant/objector stated before the Court that he had no objection to the applicant being granted anticipatory bail.

 Court Order / Findings

The High Court observed that:

  • The dispute appeared to be predominantly civil in nature.
  • The police had initially treated the complaint as non-cognizable and advised the parties to approach the court.
  • The complainant had filed an affidavit acknowledging purchase of computer equipment worth ₹2,75,000, payment of ₹1,95,000 through bank transfer and an undertaking to pay the remaining ₹80,000.
  • The investigation was still pending.
  • The State did not demonstrate any apprehension that the applicant would abscond or influence witnesses.
  • Without expressing any opinion on the merits of the allegations, the Court found it to be a fit case for granting anticipatory bail.

Accordingly, the Court allowed the application and directed that, in the event of arrest, the applicant be released on anticipatory bail upon furnishing a personal bond of ₹1,00,000 with two sureties of ₹50,000 each, subject to conditions including cooperation with the investigation, non-interference with witnesses, appearance before the trial court, compliance with COVID-19 protocols and refraining from involvement in similar offences in future.

 Important Clarification

  • Merely because allegations involve cheating and forgery does not automatically justify denial of anticipatory bail where the dispute substantially arises from a commercial transaction.
  • The Court considered the complainant's own affidavit acknowledging receipt of goods and the outstanding balance amount as an important circumstance.
  • Initial police opinion treating the matter as non-cognizable and the absence of any risk of absconding or witness tampering weighed in favour of granting anticipatory bail.
  • The Court expressly refrained from making any observations on the merits of the criminal case, limiting its findings to the question of anticipatory bail.

Sections Involved

  • Section 438 of the Code of Criminal Procedure, 1973 (Anticipatory Bail)
  • Sections 420, 465, 467, 468, 469, 471 and 34 of the Indian Penal Code, 1860

 Link to download the order:https://mytaxexpert.co.in/uploads/1783921135_4003compressed.pdf

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