Punjab-Haryana High Court
Kulwant Singh vs State Of Punjab on 12 January, 2024
Author: Anoop Chitkara
Bench: Anoop Chitkara
Neutral Citation No:=2024:PHHC:006058
CRM-M-64110-2023
2024:PHHC:006058
225 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
CRM-M-64110-2023
Date of Decision: 12.01.2024
Kulwant Singh ...Pe!!oner
Versus
State of Punjab ...Respondent
CORAM: HON'BLE MR. JUSTICE ANOOP CHITKARA
Present: Mr. Rahul Sharma, Advocate
for the pe!!oner.
Mr. Shiva Khurmi, A.A.G., Punjab.
****
ANOOP CHITKARA, J.
FIR No. Dated Police Sta!on Sec!ons
26 30.09.2023 Vigilance Bureau, 166, 177, 210, 406, 409, 418,
Jalandhar 420, 120-B IPC and 7 of PC
Act, 1988 (Amendment) Act,
1. Apprehending arrest in the FIR cap!oned above, the pe!!oner had come up
before this Court under Sec!on 438 CrPC by way of present pe!!on.
2. In paragraph 8 of the bail pe!!on, the accused declares that he has no criminal
antecedents.
3. Case of the prosecu!on is being extracted from status report filed by the State by
way of affidavit of concerned DySP, which read as under:-
"2. That the brief facts of the case are that a case bearing FIR
No.26 Dated 30.09.2023 was registered under sec on
166/167/210/406/409/418/420/ 120-B of IPC and Sec on 7 of Preven on
of Corrup on Act, 1988 as amended by P.C (Amendment) Act 2018 against
the pe oner and 11 other accused namely Jarnail Singh Wahid, Rupinder
Kaur Wahid, Sandeep Singh Wahid, Sukhbir Singh Sandhar, Harwinderjit
Singh Sandhar, Kuldeep Singh Sandhar, Pawan Kumar, Jaswinder Singh
Bains, Aman Sharma, Manjit Singh Dhillon, Parveen Chhiber and the
pe oner on the basis of above said Vigilance enquiry no. 4/2019
Jalandhar which was received on the basis of source report.
3. That during enquiry, it was found that Director of M/s. Jagatjit
Singh Sugar Mills Company Limited and M/s. Wahid Sandhar Sugar Mills
Limited have mortgaged the government property with bank which they
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were not legally allowed to do so and got registered the mortgage deed
of the property through Naib Tehsildar in favour of bank. During enquiry,
it was also found that Maharaja Jagatjit Singh of State of Kapurthala in
his agreement dated 09.02.1933 had pleased to approve of the
establishment of sugar mill at Phagwara i.e. Jagatjit Sugar Mills Co. Ltd. in
the area measuring 35 Ghuma (251 Kanal 18 Marlas) 31 Acre 03 Kanal 18
Marlas Land in order to develop sugar mill without any considera on as
Mafi Land gave to Jagatjit Sugar Mill Co. Ltd. Phagwara to run sugar mill
vide order dated 09.02.1933. According to the order dated 09.02.1933, it
has been specifically men oned in the clauses of the order that company
cannot do any work except with the prior approval of state government.
The sanc on of the state government is necessary to do any further work
in the company. It is also men oned in the order that if sugar mill closes
then this land will revert back to State without any compensa on. It is
also one of the clause of the agreement that Company can transfer its
right to other company, corpora on or to individual only with the
permission of State. It was further men oned in the said order that if the
company finds that its business does not pay and decides to dismantle the
buildings and remove the material and machinery, it shall be at liberty to
do so or dispose it of as it lies provided in that case the land shall revert to
the State without any compensa on being claimed from the State.
4. That it is men oned in the order that if the firm belongs to Sugar
Industries and wants to enter into partnership with any other then there is
no objec on but the same will have to be informed to State Government.
On 18.10.2000, Jagatjit Singh Sugar Mills Company Ltd. Phagwara run by
Oswal Agro Mills Ltd. Phagwara, transferred its rights to M/s Wahid
Sandhar Sugars Ltd. aBer signing MOU. There are number of directors in
both the companies. Then on 21.03.2001 directors of above said both the
companies Jagatjit Sugar Mills Company Limited Phagwara and M/s
Wahid Sandhar Sugar Limited Phagwara in connivance with each other
acquired the Mill and land from Jagatjit Sugar Mills Company Limited
Phagwara for a lease of 99 years at sum of Rs.1000/- per month without
the approval of the Government and gave the same to M/s Wahid
Sandhar Sugar Mills Phagwara on lease. According to clause 4 (d) (a) on
the registered lease deed, condi on has been imposed that M/s Wahid
Sandhar Sugar Limited, can mortgage this property with any bank and
financial ins tu on there will be no objec on to Jagatjit Sugar Mills Ltd
Co. This lease was not entered in the revenue record so that the bank and
the Government could be cheated while taking loans etc. Moreover M/s
Wahid Sandhar Sugar Ltd. Phagwara stood as guarantee for the loan
passed on Government land and undue financial advantage has been
taken by both the companies on Government lands. A loan for a sum of
Rs.93.34 crores was sanc oned by the State Bank of India on government
land.
5. That further the said directors of both the companies in collusion
with each other got registered a new company under the name Sugar Mill
Plaza Private Limited, G.T Road, Phagwara in the year 2010-2011 in which
Jaswinder Singh Bains Director of Jagtajit Sugar Mills Company Limited,
(Director Wahad Sandhar Sugars Limited) Phagwara, Sandeep Singh
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Wahad (Director Wahad Sandhar Sugar Limited Phagwara) Sukhbir Singh
Sandhar (Director Wahad Sandhar Sugars Limited Phagwara were
appointed directors in the said company. In the year 2013-14 another
company named as M/s WS FITNESS PRIVATE LIMITED, was got registered
in connivance of the said directors in which Jaswinder Singh Bains,
Director Jagatjit Sugar Mills Company, Director Wahad Sandhar Mills,
Director Sugar Mill Plaza Pvt. Ltd. Sandeep Singh Wahad (Director Wahad
Sandhar Mills and Director of Sugar Mill Plaza Pvt. Ltd. and Harvinderjit
Singh Sandhar (director Jagatjit Singh Sugar Mills had mortgaged area
measuring 251 Kanal 18 marlas and got registered mortgagee with State
Bank of India, Industrial Finance Branch Dholewal Chowk, Ludhiana on
dated 30.05.2019 causing undue financial losses to Government and has
defrauded the trust of the Government by encroaching on government
land.
6. That the director of M/s Jagatjit Sugar Mills Company Ltd.
opera ng through M/s Wahad Sandhar Sugars Ltd. has obtained a decree
in the year 2013 from the Hon'ble Court of Ld. Addi onal Civil Judge,
(Senior Division), Phagwara by filing a Civil Suit against each other
without making the State of Punjab a party in the suit by concealing true
and actual facts from the Court. However, appeal is pending against the
judgment passed by Ld. Addi onal Civil Judge, (Senior Division),
Phagwara."
4. State counsel submits that the pe!!oner has played a specific role in the
commission of offence. Pe!!oner being director of the company knowing well that the
property of the Mill cannot be mortgaged or sold, but, the pe!!oner in ac!ve
connivance with other co-accused had got mortgaged the property through registered
mortgage deed no.2019-20/32/1/810 dated 30.05.2019 between Wahid Sandhar Sugar
Ltd (Borrower) and Jagatjit Sugar Mills Co. Ltd. (Mortgagor) despite being mindful of the
fact that the land belongs to State and the same cannot be mortgage or sold in any
circumstance. This fact is also men!oned in clause 1 and 8 of the said order dated
09.02.1933 executed between State and Maharaja of Kapurthala namely Jagatjit Singh. A
loan for a sum of Rs.93.34 crores was sanc!oned by the State Bank of India on
government land due to the registra!on of mortgage deed by the pe!!oner.
5. Vide order dated 04.01.2024, this Court had granted an!cipatory bail to the
pe!!oner, subject to certain condi!ons and his joining inves!ga!on, which is s!ll
con!nuing.
6. State's counsel, on instruc!ons, submits that the pe!!oner has joined the
inves!ga!on and as such, pe!!oner's custodial interroga!on is not required.
7. I have heard counsel for the par!es and gone through the pleadings.
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8. Pe!!oner's counsel has argued that role of the pe!!oner is only that he was the
Director of the Company, M/s Wahid Sandhar Sugars Ltd. (now renamed as M/s Golden
Sandhar Mills Limited). No other specific act or role is aEributed to the pe!!oner.
Pe!!oner does not have and has never had any share-holding in any of the companies
men!oned in the FIR. There are no signatures of the pe!!oner on any of the loan
documents or the mortgage deed. Pe!!oner has nothing to do with the grant/sanc!on
of the loan by SBI; the execu!on of the lease deed or the sale deed dated 11.04.2017.
9. Given the nature of allega!ons and the specific stand of the State that custodial
interroga!on is not required, the pe!!on is allowed and interim order dated 04.01.2024
is made absolute. All pending applica!ons, if any, stand disposed.
(ANOOP CHITKARA)
JUDGE
12.01.2024
Jyo! Sharma
Whether speaking/reasoned: Yes
Whether reportable: No.
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