Facts of the Case

This is a criminal anticipatory bail order arising from a commercial payment dispute — GST documentation is mentioned only as part of the underlying business disagreement, not as a legal issue decided by the Court. The complainant, a transporter, alleged he carried construction material for the petitioner (a road and building contractor) and was issued a cheque for Rs. 17,64,600 on 17.12.2022, which was returned with the endorsement 'payment stopped.' A complaint followed, registering offences under Sections 406 and 420 IPC and Section 138 of the Negotiable Instruments Act, 1881. The petitioner apprehended arrest and sought anticipatory bail.

Issues Involved

  1. Whether the petitioner was entitled to anticipatory bail in a case arising from a cheque dishonour and alleged cheating in a commercial transportation dispute.

Petitioner's Arguments

  • The dispute was purely commercial, given a criminal colour; the petitioner's company had a substantial and growing turnover (over Rs. 25 crore in 2021-22), evidencing bona fides.
  • The cheque was issued as security, not in discharge of any debt, under an agreement dated 11.03.2019; the petitioner had already paid Rs. 25,50,000 against transportation charges of about Rs. 13,47,147.
  • The complainant had failed to submit GST bills, complete mining challans, e-way bills, and goods carriage challans, and GST inputs had not been uploaded on the petitioner's company's GST portal; some mining challans submitted were allegedly forged.
  • Section 138 NI Act is a bailable offence, and the trial court had mechanically taken cognizance under Section 420 IPC along with it.

Respondent's Arguments

  • The State and the complainant opposed anticipatory bail but were unable to rebut that Section 138 NI Act is bailable and that the underlying dispute arose from a commercial agreement between the parties.

Court Order / Findings

  • The Court noted that Section 138 of the NI Act is bailable, and that the dispute stemmed from a commercial agreement, factors the State and complainant could not seriously contest.
  • Considering that the petitioner had a clean antecedent and that both complaint cases against him (for different cheques) were filed on the same day, the Court granted anticipatory bail on furnishing bail bonds of Rs. 10,000 with two sureties, subject to conditions under Section 438(2) Cr.P.C.

Important Clarification

No question of GST compliance was examined or decided — the reference to missing GST bills, e-way bills, and mining challans was simply part of the petitioner's factual narrative disputing how much (if anything) was still owed to the complainant. That accounting dispute remains to be resolved at trial, not in this bail order.

Sections Involved

  • Indian Penal Code, 1860 — Sections 406 and 420
  • Negotiable Instruments Act, 1881 — Section 138
  • Code of Criminal Procedure, 1973 — Section 438 (anticipatory bail)

Decision – In Favour of

Decided in favour of the petitioner on the limited question of anticipatory bail; the underlying cheque-dishonour and cheating allegations remain to be tried.

Case Details

Court: High Court of Judicature at Patna  |  Case No.: Criminal Miscellaneous No. 50562 of 2023  |  Coram: Hon'ble Mr. Justice Satyavrat Verma  |  Date: 17 August 2023

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