2019 (9) TMI 1617 - HC - Indian Laws

Seeking grant of Regular Bail - inflation of turnover in order attain enhancement in sanction of Credit Facilities by forging valuable securities - HELD THAT - The Court having heard both the sides and also having taken into consideration the chronology of events into account, papers of investigation and also case diary presented by the Investigating Officer, is inclined to consider the extension of interim bail rather than grant of regular bail. It has also noted that there had been no untoward incident nor any complaint noticed while the applicant was on interim bail for 3 months from the inputs given by the learned Special Public Prosecutor, on instructions of the Investigating Officer, present before this Court. This Court while granting interim bail on the last occasion has given elaborate reasons for grant of interim bail, which are not to be reiterated and to be construed as the part of this order. This Court notices that on earlier occasion at the time when the chargesheet is laid, many of these employees have already been examined. In wake of the collection of additional documents by the Investigating Officer, during the course of further investigation, now, these very employees and staff and many more of the company are once again required to be examined by way of their additional statements. That, per se, may not be the ground to reject the request of personal liberty. Already the first version is with the investigating officer - in absence of any such eventuality and with the previous statements of employees of the company already on record, this apprehension at present cannot take shape of reality. The interim bail of the the present applicant is extended for further period of 4 (four) months, subject to conditions imposed - application allowed.

Summary

Issues:
Regular bail application under Section 439 of the Code of Criminal Procedure for a case registered with CBI/ACB Gandhinagar.

Analysis:
The applicant sought regular bail after interim bail expired, citing substantial progress in the investigation and the likelihood of trial delays due to pending cases. The applicant argued for bail based on the principle that 'law favours bail and not jail,' referencing legal precedents. The applicant highlighted no untoward incidents during interim bail and criticized the lack of cogent reasons for rejecting the previous regular bail application.

The investigating officer opposed bail, stating that further investigation was crucial, revealing defaults and false statements by the company. The officer emphasized the need to examine staff extensively for inflating turnover and forging securities. Concerns included potential witness influence, evidence tampering, and hindering the investigation. The officer also noted the involvement of the Resolution Professional and NCLT in managing the company's affairs, unrelated to the bail application.

Grounds for rejecting the bail application included the risk of witness influence, evidence tampering, and hindrance to identifying other involved parties. The court heard arguments from both sides, considering the ongoing investigation's critical stage and the need for further examination of company staff. The court extended interim bail for four months, emphasizing the importance of ongoing investigation materials and the potential impact on the inquiry if the applicant was released on regular bail.

Conditions for the extended bail included personal bond and surety, restrictions on property transfer, regular reporting to authorities, attendance at court and related proceedings, and prohibitions on contact with witnesses or bank officials. Breach of conditions could lead to warrant issuance or appropriate action by the Sessions Judge. The bail bond execution was to take place before the C.B.I. Court, with the order conveyed to jail authorities and service permitted.

In conclusion, the court extended the applicant's interim bail, considering the investigation's progress and the potential impact of release on the inquiry. The detailed conditions imposed aimed to ensure compliance and prevent interference with the ongoing proceedings.