Krishna Kabir V. The Union of India through Central Bureau of Investigation

A.B.A./3004/2023

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The case involves Krishna Kabir, a director of M/s Alchemist Township India Ltd., who sought anticipatory bail in connection with allegations of financial misconduct under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978, and various sections of the IPC. The prosecution accused the company of collecting deposits under a scheme that was not repaid to the investors, violating the aforementioned Act. The defense argued that Kabir was not directly involved in the financial transactions and had cooperated with the investigation, leading to the submission of a charge-sheet. The CBI opposed the bail, emphasizing Kabir's role as a founding director responsible for the company's operations. The court, considering the submissions and the fact that a charge-sheet had already been submitted, granted anticipatory bail.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 806508 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 20-07-2023
• Assessment Year: misc
• Laws Referred To: IPC, Prize Chits & Money Circulation Scheme (Banning) Act, 1978
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ANIL KUMAR; CHANDANA KUMARI; NITISH SARTHI
• Assessee Lawyers: SOUMITRA BAROI
• Keywords: Anticipatory bail; Embezzlement; Real Estate; Vicarious Liability; Public fund
• Section: 6; 5; 4; 409; 420; 120B

Judgement Text

"IN THE HIGH COURT OF JHARKHAND AT RANCHI A. B. A. No. 3004 of 2023 Krishna Kabir . .... .. ... Petitioner(s) Versus The Union of India through Central Bureau of Investigation .. ... ...Opp. Party(s) ........... CORAM :HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY ......... For the Petitioner : Mr. Soumitra Baroi, Advocate For the CBI : Mr. Anil Kumar, ASGI Ms. Chandana Kumari, AC to ASGI Mr. Nitish Parth Sarthi, AC to ASGI …... 04/ 20.07.2023. Apprehending his arrest, petitioner above-named has moved this Court for grant of anticipatory bail in connection with R.C. Case No.40(S)/ 2017 registered under Sections 120B/ 409/ 420 IPC and under Sections 4 / 5 /6 of Prize Chits & Money Circulation Scheme. Heard the parties. As per the case of prosecution, M/s S. B. Township India Ltd. registered with ROC, Punjab and Chandigarh was changed to M/s Alchemist Township India Ltd. with effect from 29.11.2012 which was involved in the business of real estate as per the articles of memorandum of association. However, during investigation, it transpired that the Directors of the company collected deposits to the tune of Rs.8,86,50,950/- through their local agents and Branch Incharge, Giridih under different districts in the State of Jharkhand under the scheme of booking of product packages (booking of land) which is still unpaid to the investors. Repayment has been made to some of the investors out of the collection itself which is in violation of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978. It is submitted by learned counsel for the petitioner that vicarious liability of Director cannot be imputated until and unless there is some overt act attributed to him in the said fraud. The account of the Company was operated by Charandeep Singh Jolly (A-7) who was the authorized signatory and not by this petitioner. The amount that was withdrawn and transferred was also by said Charandeep Singh Jolly and the only allegation against him is that he received Rs.89,000/- and Rs.85,000/- way back on 18.11.2016. It is stated that this amount was part of the salary. The petitioner has co-operated with the investigation and after investigation, charge- sheet has been submitted and no further purpose will be served if the petitioner is taken into custody. Learned ASGI for the CBI has vehemently opposed the prayer. It is submitted that he was the founding Director of the Company and he cannot be absolved of all liability of embezzling the public fund for the reason that account was operated by some other person as authorized by the company. Considering the submissions of learned counsel and considering that the charge- sheet has already been submitted and the fact as discussed above, the anticipatory bail application is allowed. Hence, in the event of his arrest or surrender within a period of three weeks from the date of receipt of a copy of this order before the learned court below, the petitioner named above shall be released on bail on furnishing bail bond of Rs.1,00,000/- (Rupees One Lakh) with two sureties of the like amount each to the satisfaction of learned Court below and subject to the condition that one of the Bailors must be Income Tax Payee and subject to the conditions laid down under Section 438(2) Cr. P.C. The petitioner comply with the condition as laid down under Section 438(2) of the Cr.P.C. (Gautam Kumar Choudhary, J.) Sandeep/uploaded. "