Bombay High Court Cancels Anticipatory Bail Granted Without Reasons in Cooperative Society Misappropriation Case. Sessions Court Order Set Aside Under Section 482 CrPC for Non-Application of Mind in Granting Pre-Arrest Bail to Chairman Accused of Defalcation of Rs.7 Crores and 7 Kg Gold.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The High Court of Bombay at Nagpur took suo motu cognizance of an order passed by the Additional Sessions Judge, Bhandara, granting anticipatory bail to Manisha Krishnakant Deshmukh, the non-applicant, in Crime No.113/2016 registered by Kardha police station. The crime was registered based on an audit report by the Auditor, Cooperative Societies, Bhandara, alleging misappropriation and defalcation of amounts exceeding Rs.7 crores and gold exceeding 7 kg by the Managing Committee of Laxmi Rural Non-agricultural Activities Cooperative Credit Society Ltd. The non-applicant was the Chairman of the Managing Committee. The Sessions Court, by order dated 03/02/2017, allowed her application under Section 438 CrPC without recording any reasons, merely stating that allegations were concentrated against two persons and no prima facie overt act was attributed to her. The High Court, while considering another co-accused's anticipatory bail application, noticed this order and issued notice to the non-applicant to show cause why the bail should not be cancelled. After hearing both sides, the High Court found that the Sessions Court had overlooked relevant aspects and granted bail without recording reasons. The High Court held that the order was passed without application of mind and was liable to be set aside. Consequently, the anticipatory bail granted to the non-applicant was cancelled, and the non-applicant was directed to surrender forthwith. The High Court also directed the Investigating Officer to proceed with the investigation in accordance with law.

Headnote

A) Criminal Procedure - Anticipatory Bail - Cancellation of Bail - Section 438, 482 Code of Criminal Procedure, 1973 - The Sessions Court granted anticipatory bail to the non-applicant without recording any reasons despite allegations of misappropriation of Rs.7-8 crores and 7-8 kg gold. The High Court, exercising suo motu jurisdiction under Section 482 CrPC, cancelled the bail as the order was passed without application of mind and without recording reasons. Held that grant of anticipatory bail without reasons is illegal and liable to be set aside (Paras 1-5).

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Issue of Consideration

Whether the anticipatory bail granted by the Sessions Court without recording reasons should be cancelled under Section 482 CrPC

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Final Decision

The anticipatory bail granted to the non-applicant by the Additional Sessions Judge, Bhandara on 03/02/2017 is cancelled. The non-applicant is directed to surrender forthwith. The Investigating Officer is directed to proceed with the investigation in accordance with law.

Law Points

  • Anticipatory bail must be granted with reasons
  • Section 438 CrPC requires recording of reasons
  • Section 482 CrPC can be used to cancel illegal bail orders
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Case Details

2017 LawText (BOM) (12) 107

Criminal Application Suo Motu No.28 of 2017 arising out of Criminal Application (ABA) No.15 of 2017 (D)

2017-12-08

A. S. Chandurkar, J.

Ms Geeta Tiwari, Additional Public Prosecutor for applicant/State; Shri P. S. Chauhan, Advocate for nonapplicant

Court on its own motion

Manisha w/o Krishnakant Deshmukh

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Nature of Litigation

Suo motu criminal application for cancellation of anticipatory bail granted by Sessions Court

Remedy Sought

Cancellation of anticipatory bail granted to non-applicant by Sessions Court

Filing Reason

Sessions Court granted anticipatory bail without recording reasons despite serious allegations of misappropriation

Previous Decisions

Sessions Court granted anticipatory bail to non-applicant on 03/02/2017

Issues

Whether the anticipatory bail granted by the Sessions Court without recording reasons is liable to be cancelled under Section 482 CrPC

Submissions/Arguments

Additional Public Prosecutor argued that the Sessions Court overlooked relevant aspects and granted bail without reasons Counsel for non-applicant opposed cancellation, but no specific arguments recorded in judgment

Ratio Decidendi

Grant of anticipatory bail under Section 438 CrPC without recording reasons is illegal and amounts to non-application of mind. Such an order can be set aside by the High Court in exercise of its inherent powers under Section 482 CrPC.

Judgment Excerpts

The learned Additional Sessions Judge has overlooked the relevant aspects and has granted pre-arrest bail to this accused (Manisha Krishnakant Deshmukh) without recording any reasons. The order passed by the learned Additional Sessions Judge is without any application of mind and the same is liable to be set aside.

Procedural History

Crime No.113/2016 registered on 09/12/2016. Non-applicant filed anticipatory bail application under Section 438 CrPC. Sessions Court granted bail on 03/02/2017. High Court took suo motu cognizance on 13/06/2017 and issued notice. After hearing, High Court cancelled bail on 08/12/2017.

Acts & Sections

  • Indian Penal Code, 1860: 409, 420, 468, 471, 477(A), 34
  • Maharashtra Protection of Depositors (Financial Establishment) Act, 1999: 3
  • Code of Criminal Procedure, 1973: 438, 482
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