2018 (9) TMI 1970 - HC - Indian Laws

Grant of Regular Bail - sell/dispose of stocks without consent of the bank - It is also the allegation that borrower has submitted false and fabricated record and played fraud with the bank for getting excessive limit and a wrongful loss has been caused to the bank - HELD THAT - No doubt while granting bail the Court has to keep in mind the nature of accusations, the nature of evidence in support thereof, severity of the punishment which conviction will entail, the character of the accused and facts and circumstances of the case. It is also one of the factors while considering the bail that that is a reasonable possibility of securing the presence of the accused during trial and reasonable apprehension of the witnesses being tampered with. The larger interest of the public/State and some other similar considerations are also there. However, for the purpose of granting bail, the Legislature has used the words reasonable grounds for believing instead of the evidence , which means the Court while dealing with the grant of bail can only satisfy itself as to whether there is a genuine case against the accused and the prosecution will be able to produce prima facie evidence in support of the charges. It is a settled preposition of law that while granting bail though the Court may impose reasonable conditions as it thinks fit but the object of putting conditions is to avoid the possibility of the person hampering investigation. The discretion of the Court while putting condition is to be in exercise of judicial discretion. Without commenting anything on the merits of the case as allegations are matter of evidence to be tested by the trial Court during the course of trial and by considering that the petitioner is in custody for the last more than one year and two months and also the fact that challan has been presented before the trial Court, the offences are triable by Magistrate - petitioner shall furnish a personal bond in the sum of ' 5 lacs with the sureties in the like amount to the satisfaction of the trial Court. The petitioner is directed to be released on regular bail - Petition allowed.

Issues Involved:
1. False Implication and Role of Petitioner
2. Seriousness of Offence and Allegations
3. Examination of Evidence and Procedures
4. Legal Precedents and Principles for Granting Bail
5. Conditions for Granting Bail

Detailed Analysis:

1. False Implication and Role of Petitioner:
The petitioner, D.K. Sethi, claimed false implication, arguing that he had not played any role in the alleged crime. His name was not mentioned in the FIR, and his role was similar to that of co-accused S.K. Sinha, who was found innocent. The petitioner joined as Chief Manager in 2010, and all procedures for credit facilities were followed transparently, including independent scrutiny and audits. The petitioner asserted that no deviation from bank norms occurred and that the credit facilities were sanctioned by the Head Office. He emphasized his unblemished service record and readiness to cooperate with court proceedings.

2. Seriousness of Offence and Allegations:
The prosecution opposed the bail, highlighting the seriousness of the offence. It was alleged that the petitioner failed to obtain necessary invoices, leading to the release of loan amounts to bogus firms, causing wrongful loss to the bank. Specific allegations were made against the petitioner and other co-accused, indicating a criminal conspiracy and submission of false documents.

3. Examination of Evidence and Procedures:
The court examined the FIR and other documents, noting that there was no specific attribution of role to the petitioner. The valuation of property and independent scrutiny by auditors were conducted as per bank policy. The complainant bank had also filed a civil suit for recovery of dues, and the petitioner, a retired bank officer, had cooperated with the investigation. Given the number of accused and witnesses, the trial was expected to take a long time, and keeping the petitioner in custody was deemed unnecessary.

4. Legal Precedents and Principles for Granting Bail:
The court referred to several legal precedents, including the landmark decision in Sanjay Chandra v. CBI, which emphasized that the object of bail is to secure the appearance of the accused at trial, not to punish them pre-conviction. The court also considered judgments that highlighted the importance of personal liberty and the principle that pre-conviction detention should be avoided unless necessary to secure attendance at trial or prevent tampering with evidence. The court noted that economic offences, while serious, do not automatically justify refusal of bail.

5. Conditions for Granting Bail:
The court, without commenting on the merits of the case, granted bail to the petitioner, considering his long custody period, the presentation of the challan, and the fact that the offences were triable by a Magistrate. The bail was granted subject to conditions:
- The petitioner must furnish a personal bond of ?5 lakhs with sureties.
- Surrender his passport if not already seized.
- Not leave the country without court permission.
- Not tamper with evidence or create hurdles in the investigation or trial.
- Any other conditions imposed by the trial court.

The court's decision was guided by the principles of personal liberty, the need for a fair trial, and the judicial discretion exercised in granting bail.

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