Case Note & Summary
The applicant, The Balasaheb Satbhai Merchant Coop Bank Ltd., through its Liquidator, filed an application under Section 439(2) of the Code of Criminal Procedure, 1973, seeking cancellation of regular bail granted to respondents No.3 to 12 by the Judicial Magistrate First Class, Kopargaon, vide orders dated 16.07.2008 and 23.10.2008. The respondents were the former Chairman (respondent No.3), Members of the Managing Committee (respondents No.4 to 10 and 12), and the Manager (respondent No.11) of the applicant bank. The Reserve Bank of India had cancelled the bank's license due to irregularities, and a Liquidator was appointed. The applicant contended that the bail orders were passed without considering the seriousness of the offences and that the charge-sheet had been filed, warranting cancellation. The respondents opposed, arguing that there were no supervening circumstances or misuse of liberty. The court, after hearing the parties, held that cancellation of bail under Section 439(2) CrPC requires supervening circumstances such as misuse of liberty, tampering with evidence, or fleeing from justice. Mere filing of charge-sheet or gravity of offence is not sufficient. The court found no such circumstances and dismissed the application, upholding the bail orders.
Headnote
A) Criminal Procedure Code - Bail Cancellation - Section 439(2) CrPC - Cancellation of bail requires supervening circumstances or misuse of liberty - The applicant bank sought cancellation of bail granted to former Chairman and Managing Committee members alleging irregularities. The court held that mere filing of charge-sheet or seriousness of offence is not sufficient to cancel bail unless there is misuse of liberty or tampering with evidence. (Paras 1-6)
B) Cooperative Banks - Irregularities - Cancellation of License - The Reserve Bank of India cancelled the license of the applicant bank due to irregularities. The District Deputy Registrar appointed a Liquidator. The court noted that the bail was granted after hearing the prosecution and no supervening circumstances were shown. (Paras 3-5)
Issue of Consideration
Whether the bail granted to respondents No.3 to 12 by the JMFC, Kopargaon, should be cancelled on the ground that the charge-sheet has been filed and the offences are serious.
Final Decision
The application for cancellation of bail is dismissed. The bail granted to respondents No.3 to 12 by JMFC, Kopargaon is upheld.
Law Points
- Bail cancellation requires supervening circumstances or misuse of liberty
- mere filing of charge-sheet not sufficient
- power under Section 439(2) CrPC
Case Details
2011 LawText (BOM) (09) 9
Criminal Application No.3362 of 2009
Mr.N.R.Bhavar for applicant, Mr.S.G.Nandedkar APP for respondent State, Mr.C.A.Jadhav h/f V.D.Hon for respondents No.3 and 7, Mr.V.D.Sapkal for respondent No.12, Mr.P.R.Adkine for respondent No.11, Mrs.Rashmi Kulkarni h/f Mr.Sanket Kulkarni for R9
The Balasaheb Satbhai Merchant Coop Bank Ltd., through its Board Member of Liquidator, Sham s/o Vyankatesh Kshirsagar
The State of Maharashtra, The District Superintendent of Police, Ahmednagar, Sanjay Vasantrao Satbhai, Ashokchand Shobhachand Kothari, Rameshwar Jagannath Mundada, Nandkumar Ramchandra Vispute, Kishor Swarupchand Gangwal, Ramanlal Madanlal Kale, Sanjay Narayandas Thole, Rajendra Manikchand Phulpagar, Dilip Chunnilal Gundecha, Mina Rajendra Bhalerao
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Nature of Litigation
Application under Section 439(2) CrPC for cancellation of bail granted to respondents in a case involving irregularities in a cooperative bank.
Remedy Sought
Cancellation of regular bail granted to respondents No.3 to 12 by JMFC, Kopargaon.
Filing Reason
The applicant bank, through its Liquidator, alleged that the bail orders were passed without considering the seriousness of offences and that charge-sheet had been filed.
Previous Decisions
JMFC, Kopargaon granted regular bail to respondents No.3 to 12 vide orders dated 16.07.2008 and 23.10.2008.
Issues
Whether the bail granted to respondents No.3 to 12 should be cancelled under Section 439(2) CrPC.
Whether mere filing of charge-sheet or seriousness of offence is sufficient ground for cancellation of bail.
Submissions/Arguments
Applicant argued that the bail orders were passed without considering the seriousness of the offences and that the charge-sheet has been filed, warranting cancellation.
Respondents argued that there were no supervening circumstances or misuse of liberty, and the application was without merit.
Ratio Decidendi
Cancellation of bail under Section 439(2) CrPC requires supervening circumstances such as misuse of liberty, tampering with evidence, or fleeing from justice. Mere filing of charge-sheet or gravity of offence is not sufficient to cancel bail.
Judgment Excerpts
By this application, the applicant has prayed to quash the orders dated 16.07.2008 and 23.10.2008 passed by JMFC, Kopargaon granting regular bail in favour of respondents No.3 to 12.
Admittedly, respondent No.3 was the Chairman and respondents No.4 to 10 and 12 were the Members of the Managing Committee of applicant Bank whereas respondent No.11 was the Manager of the said Bank.
Procedural History
The applicant bank filed Criminal Application No.3362 of 2009 before the Bombay High Court, Aurangabad Bench, seeking cancellation of bail granted by JMFC, Kopargaon on 16.07.2008 and 23.10.2008. The application was heard and finally disposed of on 21.09.2011.
Acts & Sections
- Code of Criminal Procedure, 1973: 439(2)
