Naval Kishore Agarwal vs The State Of Madhya Pradesh
2021 Latest Caselaw 8095 MP

      THE HIGH COURT OF MADHYA PRADESH
                     M.Cr.C. No.47240/2021
          (Naval Kishore Agrawal Vs. State of M.P. )
                                                                       1

Jabalpur, Dated : 02/ 12/ 2021
      Shri Anil Khare, learned Sr. counsel with Shri Rajesh Kumar
Chand, learned counsel for the applicant.
      Shri Ravindra Rajpoot, learned P.L. for the respondent/State.

Shri Abhinav Shrivastava, learned counsel for the objector. Heard with the aid of case diary.

This is first application filed under section 439 Cr.P.C. Applicant Naval Kishore Agrawal was arrested on 31.07.2021 in Crime No. 73/2019 registered at Police Station Dongargaon, Tehsil Gadarwara, District Narsinghpur for the offence punishable under Sections 406, 420 of IPC.

As per prosecution case, on 07/06/2019 complainant Lakhanlal Kaurav lodged a report at Police Station Dongargaon, District Narsinghpur averring that he ran a business of Gur (jaggery). In the year 2013, he met applicant Naval Kishore Agrawal, who also was indulged in the business of jaggery and offered him to open a jaggery plant. Thereafter, in the year 2016 complainant set up a factory in partnership with the applicant in the name and style of M/s Maa Narmada Gur Udyog and took a loan of Rs.1,50,00,000/- by mortgaging his land. They used to purchase sugarcane from the farmers of the area and after making jaggery they sold the same in the market and thereafter paid the amount to the farmers due to them. The work assigned to the complainant was to purchase sugarcane from the farmers in lieu of which he gave a receipt to the farmers and thereafter the payment was to be made by the applicant to the farmers. Since the payment to the farmers was not made till March 2019 complainant made a query to the applicant. The applicant assured him that the payment will be made by 5th April 2019. But, since the payment was yet not done till 5th April 2019, complainant enquired into the matter and came to know that applicant in connivance with co-accused Sachin Bhatnagar, who was the Accountant of the firm, embezzled an amount THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No.47240/2021 (Naval Kishore Agrawal Vs. State of M.P. )

of Rs.1,24,00,000/- of the said firm and ran away. Thus they committed fraud with the complainant and did not pay an amount of Rs.1,24,00,000/- to the farmers and other persons. On that police registered Crime No.73/2019, for the offence punishable under Sections 420, 406 of the IPC against the applicant and co-accused Sachin Bhatnagar.

Learned counsel for the applicant submits that the applicant is innocent and has falsely been implicated in this case. Though it is alleged that the applicant embezzled the amount of Rs. 1.25 crores which he obtained from the sale of the jaggery of Maa Narmada Gur Udyog. He purchased raw sugarcane from the farmers but did not pay their dues amounting to Rs. 93,04,045/-. But there is no evidence on record to show that the applicant withdrew any amount from the accounts of Maa Narmada Gur Udyog. On the contrary, from the account statement of Maa Narmada Gur Udyog, it appears that the complainant withdrew an amount of Rs. 18,53, 000/- and gave it to his relative. It is alleged that the cheques given by the applicant were dishonoured but said cheques were seized by the police from the possession of the complainant and not from the possession of farmers. Police did not record the statement of any farmer to show that the applicant gave him a cheque which was dishonoured or the applicant purchased any raw sugarcane from the farmers. From the cheques seized by the police from the possession of the complainant, it appears that these cheques have been prepared fraudulently by the complainant in whose possession the cheque book of Maa Narmada Gur Udyog is kept. There is no evidence on record to show that any property or money of Maa Narmada Gur Udyog was entrusted to the applicant. So, no offence under Section 406 or 409 of IPC is made out against the applicant. Even otherwise the dispute between the appellant and the complainant is of civil nature. Complainant giving it the colour of a criminal offence lodged a false report against the applicant. The charge THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No.47240/2021 (Naval Kishore Agrawal Vs. State of M.P. )

sheet has been filed. The applicant is ready to cooperate in the trial. He has been in custody since 31.07.2021, and the conclusion of the trial will take time, hence prayed for the release of the applicant on bail. In this regard, learned counsel for the applicant has placed reliance on the Apex Court judgments passed in the case of India Oil Corpn. Vs. NEPC India Ltd. and Ors., (2006) 6 SCC 736, Randheer Singh Vs. State of M.P. and Ors., 2021 SCC Online 942 and Mitesh Kumar Vs. State of Karnataka and Ors. 2021 SCC Online SC 976.

Learned counsel for the State as well as learned counsel for the complainant/objector opposed the prayer and submitted that applicant supplied finished jaggery to parties and took amount from them but the said amount was not deposited by the applicant with the company and he embezzled that amount. The cheques which were given by the applicant to the farmers in lieu of purchasing their sugarcane was also dishonoured. In the inquiry report conducted by the SDOP, Gadarwara it is mentioned that from the record of Madi Committee it appeared that the applicant supplied jaggery to Agrawal trading company, Annapurna Gur Udyog and Samarth trading company and that amount was not deposited by the applicant in the account of Maa Narmada Gur Udyog which clearly shows that applicant embezzled that amount so, offence punishable under section 406/409 IPC is clearly made out against the applicant. In this regard he also placed reliance on the Apex Court judgment passed in R.K. Dalmia and Ors AIR 1962 Supreme Court 1821.

Learned counsel for the complainant/objector further submitted that earlier applicant had filed two anticipatory bail applications which were dismissed by this Court vide order dated 30.09.2021 and 01.03.2021 passed in M.Cr.C. No. 39360/2019 and M.Cr.C. No. 8420/2021. Even after rejection of the previous bail applications of the applicant by this court, the applicant did not appear before the investigation office and did not cooperate in the investigation. The THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No.47240/2021 (Naval Kishore Agrawal Vs. State of M.P. )

Investigation Officer filed a charge sheet before the trial court in the absence of the applicant. He did not appear before the trial court even after filing of the charge sheet. So, possibility of his absconding on him being released on bail cannot be ruled out. So, the applicant should not be released on bail.

It is alleged that the applicant supplied jaggery to Agrawal trading company, Annapurna Gur Udyog and Samarth trading company and that amount was not deposited by the applicant in the account of Maa Narmada Gur Udyog and embezzled the amount. He also did not pay dues to the farmers. But there is no documentary evidence on record to show that the applicant received any amount from Agrawal trading company, Annapurna Gur Udyog and Samarth trading company in lieu of selling of jaggery. Even in the statement of jaggery sales produced by the prosecution, in most of the transactions, the complainant's name appears as the seller and not that of M/s Maa Narmada Gur Udyog. Police did not seize any slip which is being said to be given to the farmers by the applicant.

Looking to the facts and circumstances of the case and the contention of learned counsel for the applicant and fact that the applicant is in custody since 31.07.2021, charge-sheet has been filed and conclusion of trial will take time, without commenting on the merits of the case, the application is allowed and it is directed that the applicant be released on bail upon his furnishing personal bond in the sum of Rs.50,000/- (Rs. Fifty Thousand Only) with one surety in the like amount to the satisfaction of the concerned C.J.M/trial Court for his appearance before the trial Court on all such dates as may be fixed in this behalf by the trial Court during the pendency of trial.

This order will remain operative subject to compliance of the following conditions by the applicant :-

1. The applicant will comply with all the terms and conditions of the bond executed by him;

2. The applicant will cooperate in the trial;

THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No.47240/2021 (Naval Kishore Agrawal Vs. State of M.P. )

3. The applicant will not indulge himself in extending inducement, threat or promise to any person acquainted with the fact of the case so as to dissuade him from disclosing such facts to the Court or to the Police Officer, as the case may be;

4. The applicant shall not commit an offence similar to the offence of which he is accused;

5. The applicant will not seek unnecessary adjournments during the trial; and

6. The applicant will not leave India without prior permission of the trial Court.

C.C. on payment of usual charges.

                                                        (Rajeev Kumar Dubey)
sarathe                                                        Judge



   Digitally signed by
   NAVEEN KUMAR
   SARATHE
   Date: 2021.12.04
   17:11:20 +05'30'