Facts of the Case

The petitioner, Suresh Kumar Luthra, sought regular bail before the Punjab and Haryana High Court in FIR No. 79 dated 18.07.2023, registered at Police Station Cyber Crime, Chandigarh, under Sections 406, 420, 120-B, 476, 468 and 471 IPC. As per the complainant's statement, she was the proprietor of M/s Laksh Enterprises, dealing in books; she received a call from a person posing as the proprietor of "Sai Enterprises, Manimajra," who placed a large book order and provided a GST number for the transaction. The complainant dispatched books and copies worth Rs. 3.50 lakh to the address given, on the promise of payment to be transferred to the auto-rickshaw driver delivering the goods — but no payment was made. On inquiry, it emerged that the GST number provided actually belonged to a different firm based in Lucknow, i.e., the accused had used a fabricated or misappropriated GST number to lend credibility to the fraudulent order.

Issues Involved

  1. Whether the petitioner, in custody since 20.07.2023, was entitled to regular bail, particularly in light of a compromise reached with the complainant.

Petitioner's Arguments

  • A compromise had been reached, with the complainant having received Rs. 3,47,500/- as full and final settlement; a quashing petition based on this compromise was already pending before the Court.
  • Given the settlement and the period already spent in custody, the petitioner was entitled to bail.

Respondent's Arguments

  • The State opposed bail, contending the petitioner was a habitual offender with three other cases pending against him, in two of which he had been declared a proclaimed offender, along with multiple Negotiable Instruments Act cases — though the State did not dispute that a compromise had in fact been reached in this case.

Court Order / Findings

  • The Court noted the petitioner's custody since 20.07.2023 and the compromise reflected in the pending quashing petition (CRM-M-44521-2023), and held that further incarceration was not required.
  • Without commenting on the merits of the case, the Court allowed the bail petition and ordered release on furnishing bail and surety bonds to the satisfaction of the trial court.
  • No finding was made regarding the fabricated GST number or any GST-law question — the reference features purely as part of the fraud's factual narrative.

Important Clarification

This order does not address GST law; the misuse of a GST number as a tool of deception in a cheating scheme is a criminal-law fact pattern, not a tax dispute. Businesses should nonetheless note that verifying a counterparty's GST registration through the GST portal before dispatching goods on credit can help detect precisely this kind of fraud before, not after, the loss occurs.

Sections Involved

  • Sections 406, 420, 120-B, 476, 468, 471, Indian Penal Code, 1860
  • Section 439, Code of Criminal Procedure, 1973 (regular bail)

Decision – In Favour of

Decided in favour of the petitioner; regular bail was granted in light of the compromise, without any comment on the merits. No GST-law question was involved or decided.

Case Details

  • Court: High Court of Punjab and Haryana at Chandigarh
  • Case No.: CRM-M-43414-2023
  • Neutral Citation: 2023:PHHC:117908
  • Coram: Hon'ble Mr Justice Jasjit Singh Bedi
  • Date of Decision: 6 September 2023

Link to Download the Order

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