Facts of the Case

Arjun Deshpande and Rajesh Deshpande, associated with M/s Swasthya Lifescience Pvt. Ltd., Thane, sought anticipatory bail before the Rajasthan High Court (Jaipur Bench) in connection with FIR No. 688/2022 registered at Police Station N.E.B. Alwar for an offence under Section 420 IPC. The complainant alleged that the petitioners' GST number and drug licence had been misused.

The petitioners' counsel pointed out that an agreement dated 06.02.2021 between the parties contained a clause referring disputes to arbitration, that the alleged offence rested on documents already in the investigating agency's possession, and that the petitioners had already joined the investigation pursuant to an earlier court order dated 17.04.2023.

Issues Involved

  1. Whether the petitioners, accused of cheating involving alleged misuse of the complainant's GST number and drug licence, were entitled to anticipatory bail, particularly given the presence of an arbitration clause in the parties' agreement.

Petitioner's Arguments

  • The petitioners argued they were falsely implicated, that the underlying dispute was governed by an arbitration clause in the agreement dated 06.02.2021, that the case rested entirely on documents already with the investigating agency, and that they had already cooperated with the investigation as directed by an earlier order.
  • They submitted that custodial interrogation was unnecessary.

Respondent's Arguments

  • The complainant, assisted by the Public Prosecutor, vehemently opposed the bail application, contending that the petitioners had misused the complainant's GST registration number and drug licence.

Court Order / Findings

  • The Court considered the totality of circumstances — the documentary nature of the evidence, the arbitration clause in the parties' agreement, and the petitioners having already joined the investigation — and allowed the anticipatory bail applications "without expressing any opinion on the merits/demerits of the case."
  • The petitioners were directed to be released on bail, if arrested, on furnishing a personal bond of Rs. 50,000 with two sureties of Rs. 25,000 each, subject to standard conditions on cooperation, non-inducement of witnesses, and not leaving India without permission.

Important Clarification

The allegation of GST number misuse was never actually examined — the Court granted bail based on the arbitration clause and the documentary nature of the case, expressly declining to express any opinion on merits. Nothing here should be read as a finding on whether the complainant's GST registration was in fact misused.

Sections Involved

  • Indian Penal Code, 1860 – Section 420
  • Code of Criminal Procedure, 1973 – Section 438 (anticipatory bail)
  • Arbitration and Conciliation Act, 1996 (context only, via the parties' agreement)

Decision – In Favour of

Decided in favour of the petitioners, Arjun Deshpande and Rajesh Deshpande, who were granted anticipatory bail; the Court expressly avoided any opinion on the merits of the GST-number-misuse allegation.

Case Details

  • Court: High Court of Judicature for Rajasthan, Bench at Jaipur
  • Case Nos.: S.B. Criminal Miscellaneous Bail Application No. 3972/2023 connected with No. 3980/2023
  • Coram: Hon'ble Mr. Justice Anil Kumar Upman
  • Date of Order: 29/08/2023

Link to Download the Order

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