Supreme Court reverses anticipatory bail rejection order by Justice Anjani Kumar Sharan in a case from Khagaria

In Abhinav Pandey vs. The State of Bihar (2025), Supreme Court's Division Bench of Justices Prashant Kumar Mishra and Vipul M. Pancholi passed an order dated September 8, 2025, wherein, bail was granted to the petitioner. The order reads: "In the meanwhile, in the event of arrest of the petitioner, he shall be released on bail in connection with the FIR No. 1019 of 2021, registered with Police Station-Mufassil, District-Khagaria, Bihar, if not required in any other case, subject to the satisfaction of the Arresting officer/ Trial Court. 

In his order dated February 7, 2025, Justice Anjani Kumar Sharan of Patna High Court had denied anticipatory bail to the petitioner. The petitioner had approached the High Court as he apprehende his arrest in a case registered for the offences punishable under Sections 406, 420, 467, 468, 147 read with section 120B of Indian Penal Code. 

Earlier also the anticipatory bail application of the petitioner had filed before this Court in Cr. Misc. No. 5565 of 2023 but he had withdrawn and the anticipatory bail application of the petitioner was dismissed with a liberty to surrender before the court below and seek regular bail. Justice Sharan had observed: "Now, the petitioner had not surrendered before the court below and filed the second anticipatory bail application on the new ground. Considering the aforesaid fact, I am not inclined to grant anticipatory bail to the petitioner. Accordingly, this application is dismissed.". Supreme Court has reversed this order. 

Supreme Court upholds order by Justice Soni Shrivastava refusing grant of anticipatory bail

In Kauleshwar Prasad Sah vs. The State of Bihar (2025), Supreme Court’s Division Bench of Justices J.K. Maheshwari and Vijay Bishnoi passed a 2-page long order dated August 25, 2025 in the case related to a scam in the University and the alleged financial defraud by all the petitioners. . It reads:”It is also a fact that the special leave petitions preferred by Mr. Jitendra Kumar (SLP (Crl.) No.7000/2025 @ D.No.22186/2025), Mr. Manoj Gupta(SLP (Crl.) No. 7168/2025 @ D.No. 24324/2025), Dr. Ashok Kumar (SLP (Crl.) No.8245/2025 @ D.No.27267/2025) and Mr. Sunil Agarwal(SLP (Crl.) No.8215/2025 @ D.No.27269 of 2025) asking pre-arrest bail have been rejected by this Court. 2) Considering all these aspects, we are not inclined to grant anticipatory bail as prayed for. Accordingly, the special leave petitions stand rejected….3) However, the officers are at liberty to take recourse as permissible.” The special leave to appeal (Criminal) arose out of impugned final judgment and order dated April 17, 2025 in Kauleshwar Prasad Sah vs. The State of Bihar through Spl. Vigilance Unit, Patna, Bihar passed by the Patna High Court. 

In Kauleshwar Prasad Sah vs. The State of Bihar through Spl. Vigilance Unit, Patna, Bihar (2025), in her 7-page long order dated April 17, 2025, Justice Soni Srivastava of Patna High Court had concluded:”…it appears that there is strong allegation of conspiracy as against the present petitioner showing his involvement and also considering the fact that similarly situated co-accused persons have already been denied the anticipatory bail by co-ordinate benches of this Court vide order dated 13.02.2025 passed in Cr.Misc. No. 74836 of 2024, Vide order dated 08.04.2025 passed in Cr. Misc. No. 32493 of 2024, Cr. Misc. No. 22548 of 2024, Cr. Misc No. 33718 of 2024, Cr. Misc No. 31143 of 2024, Cr. Misc. No. 32191 of 2024, Cr. Misc. No. 32719 of 2024 and Cr. Misc. No. 83228 of 2024 and also considering the ratio laid down by the Apex Court in the case of Devinder Kumar Bansal (Supra), I am not inclined to grant anticipatory bail to the petitioner and his prayer for bail is hereby, rejected. 12. This application stands dismissed.” 

Justice Srivastava referred to Supreme Court’s paragraphs 23-26 of the decision in Devinder Kumar Bansal vs. The State of Punjab (Special Leave to Appeal (CRL). No.3247 of 2025) reported in 2025 LiveLaw (SC) 291. It reads:  “23. The presumption of innocence, by itself, cannot be the sole consideration for grant of anticipatory bail. The presumption of innocence is one of the considerations, which the court should keep in mind while considering the plea for anticipatory bail. The salutary rule is to balance the cause of the accused and the cause of the public justice. Over solicitous homage to the accused's liberty can, sometimes, defeat the cause of public justice. 24. If liberty is to be denied to an accused to ensure corruption free society, then the Courts should not hesitate in denying such liberty. Where overwhelming considerations in the nature of aforesaid require denial of anticipatory bail, it has to be denied. It is altogether a different thing to say that once the investigation is over and charge sheet is filed, the Court may consider to grant regular bail to a public servant- accused of indulging in corruption. 25. Avarice is a common frailty of mankind and Robert Walpole's famous pronouncement that all men have their price, notwithstanding the un-savoury cynicism that it suggests, is not very far from truth. As far back as more than two centuries ago, it was Burke who cautioned: "Among a people generally corrupt, liberty cannot last long". In more recent years, Romain Rolland lamented that France fell. because there was corruption without indignation. Corruption has, in it, very dangerous potentialities. Corruption, a word of wide connotation has, in respect of almost all the spheres of our day to day life, all the world over, the limited meaning of allowing decisions and actions to be influenced not by the rights or wrongs of a case but by the prospects of monetary gains or other selfish considerations. 26. If even a fraction of what was the vox pupuli about the magnitude of corruption to be true, then it would not be far removed from the truth, that it is the rampant corruption indulged in with impunity by highly placed persons that has led to economic unrest in this country. If one is asked to name one sole factor that effectively arrested the progress of our society to prosperity, undeniably it is corruption. If the society in a developing country faces a menace greater than even the one from the hired assassins to its law and order; then that is from the corrupt elements at the higher echelons of the Government and of the political parties.” 

The petitioner had approached the Court apprehending his arrest in connection with Special Case No. 48 of 2021 arising out of Special Vigilance Unit (SVU) P.S. Case No. 02 of 2021 registered under sections 109, 120B, 201, 409, 420, 467, 468, 471,506 of the Indian Penal Code as well as sections 13(2) r/w 13 (1) (b) r/w 12 of Prevention of Corruption Act. As per the FIR, Dr. Rajendra Prasad, while working as the Vice Chancellor, Magadh University, Bodh Gaya hatched a criminal conspiracy with the assistance of Finance Officer, Veer Kunwar Singh University, the Registrar, Patliputra University private firms namely, Ms Poorva Graphics & M/s XLICT software Pvt. Ltd and other unknown accused persons and fraudulently and dishonestly cheated the Government to the extent of Rs. 20 crores during the year 2019-21 in the matter of purchase of various items related to the use of University during examination and otherwise, it is alleged that ignoring the advice of the competent officer, the accused persons raised bill to the extent of Rs. 20 crores from Magadh University and Veer Kunwar Singh University without assessing the requirement and violating the tender procedure and justification of rates etc. The Finance Officer, Veer Kunwar Singh University and Registrar Patliputra University cleared all the fraudulent bills of the private firms. The petitioner, who was officiating as the Finance Officer of Patliputra University, was deputed to Magadh University as Finance Officer by the order of the Chancellor/Governor of Bihar where he served in the capacity of Finance Officer from April 15, 2021 to July 4, 2021. The allegation against the petitioner was that he connived with the main accused, Dr. Rajendra Prasad, the then Vice Chancellor and other accused persons to clear the fraudulent bills of accused nos. 3 and 4. 

The counsel for the petitioner submitted before the High Court that from bare perusal of the First Information Report, it can be inferred at the outset that the petitioner is not named in the FIR and his name has surfaced during the investigation and the charge-sheet was submitted against the petitioner on 20.03.2023. It has been further submitted on behalf of the petitioner that petitioner is innocent and has been falsely implicated in the present case. It was further submitted that being the Finance Officer, the petitioner is bound to act in accordance with the orders of the Vice Chancellor. Section 16 of the Act also reflects that the Finance Officer has no role in making any financial decisions for the University, rather he holds a formal role as a co-signatory upon the payment of cheques. It has been further submitted that the petitioner had lodged complaints with secretary, Governor Secretariat about the mishaps of the University long before the initiation of the present case. Annexure-4 to the present application has been brought on record to substantiate the said submission. 

The Special Public Prosecutor for the Vigilance (SVU) opposed the prayer for bail and has drawn the attention of this Court to the averments made in the counter affidavit filed on behalf of the SVU. It has been stated in paragraphs-10, 13 and 14 of the counter affidavit that the petitioner was in connivance with the prime accused and other accused persons. There was a fraud in supply made by the accused nos. 2 and 3 and knowing these facts the Examination Controller and the petitioner signed the cheques. Hence, the petitioner is a part of criminal conspiracy due to which huge amount of Government of Bihar was misappropriated. The counsel for the Special P.P. for the SVU hence, submits that a huge loss has been caused to the state exchequer and the petitioner is part of the said conspiracy. The attention of the Court has also been drawn to the fact that the anticipatory bail application of several similarly situated accused persons have already been rejected by the High Court. In support of their contentions, the counsel for the petitioner has relied upon the judgments in Santosh So Dwarkadas Fafat vs. State of Maharastra (2017) 9 SCC 714, Siddharth vs. State of Uttar Pradesh & Anr. (2022) 1 SCC 676, Aman Preet Singh vs. CBI through Director 2021 SCC Online SC 941,  Satender Kumar Antil vs. CBI & Anr. Reported as (2021) 10 SCC 773 and Mahdoom Bava vs. CBI reported as 2023 SCC OnLine SC 299. 

Supreme Court stays proceedings before Trial Court, Justice Bibek Chaudhuri refused to quash FIR in a private dispute under corporate law

In Sarita Bajaj & Ors. vs. The State of Bihar through the Secretary, Home Department, Govt. of Bihar & Ors. (2025), Supreme Court's bench of Justices Vikram Nath and Sandeep Mehta passed an order dated July 18, 2025 staying further proceedings before the Trial Court. Justice Bibek Chaudhuri of Patna High Court had passed a 20-page long judgement dated May 9, 2025, wherein, he concluded:"....I have no other alternative but to hold that in the instant case, the F.I.R. being Kotwali P. S. Case No. 45 of 2024, dated 18th August, 2023, cannot be quashed. 32. The issue involving forgery and a criminal investigation has not been complained of by any instrumentality of the State. The dispute is absolutely private in nature involving two full brothers and their families in respect of partition and subsequent financial irregularity of family-owned companies. Therefore, no writ under Article 226 of the Constitution of India lies. 33. The instant writ petition is, thus, dismissed on contest."

Drawing on the judgement passed by National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, Justice Chaudhari was "convinced that the allegation made by the Petitioner for outstanding loan is frivolous as the Learned Court has already adjudicated the matter in detail and has come to its finding."  He observed:"The writ courts often do not delve deeply into factual disputes and the evidences as to whether the signatures done on Securities Transfer Form (SH-4) was fabricated or not and so the Court can not come to the conclusion as to whether the signature is forged or not but has come across the Judgement of NCLAT, New Delhi where it is seen that the Petitioners were previously capable of producing false document."

Sarita Bajaj, the Petitioner had invoked Constitutional Writ Jurisdiction of the High Court under Article 226 of the Constitution of India for issuance of a writ in the nature of Certiorari for quashing the FIR registered on January 16, 2024 at Kotwali Police Station in 2024 for the offences alleged to have been committed under Sections 406, 420, 467, 468 and 471 read with Section 34 of the Indian Penal Code, 1860. 

On January 16, 2024, Sushil Kumar Bajaj, the brother of Ajay Kumar Bajaj, Petitioner No. 2, had submitted a written complaint to the Station House Officer of Kotwali Police Station, alleging inter alia, that Ajay Kumar Bajaj (son of Late Purshottam Das), Awi Bajaj (son of Ajay Kumar Bajaj), Sarita Bajaj (wife of Ajay Kumar Bajaj), and Asit Baran Paul (Chartered Accountant) were involved in fabricating documents to unlawfully transfer of shares of Bajaj Buildcon Pvt. Ltd., which belonged to him, into the names of Awi Bajaj and Sarita Bajaj. He also alleged that the accused forged a letter to illegally withdraw funds from the account of Kanika Buildcon Pvt. Ltd., and subsequently transferred the money to another company, Mandyati Dealcom Private Limited. The complainant, Sushil Kumar Bajaj, and the 4th accused, Ajay Kumar Bajaj, are entered into a Memorandum of Understanding (MOU)/Family Partition agreement. According to the agreement, it was decided that Bajaj Buildcon Private Limited, along with other associated companies, would be transferred to Ajay Kumar Bajaj. The parties agreed to close all existing bank accounts of the respective companies and subsequently will transfer the shares. 

The terms of the Family Partition clearly indicated that the first party refers to Sushil Kumar Bajaj and his family, while the second party refers to Ajay Kumar Bajaj and his family. Clause 1 of the memorandum outlines the companies that will be transferred to the first party (the informant), and Clause 2 details the companies that will be given to the second party (Ajay Kumar Bajaj) and his family. The informant acknowledged the existence of this partition deed in his written complaint. It was confirmed that following the transfer of ownership, the shares of the respective companies will also be transferred to the names of the relevant parties and their families. In accordance with the agreed arrangement, Petitioner No. 1, Sarita Bajaj, and Petitioner No. 3, Awi Bajaj, were appointed as Directors of Bajaj Buildcon Pvt. Ltd. On February 27, 2021, the informant submitted his resignation from the Directorship of Bajaj Buildcon Pvt. Ltd. and executed a formal instrument of transfer as required under Section 56 of the Companies Act, 2013. 

On February 27, 2021, on 27.02.2021, the informant executed two instruments of transfer. One instrument was executed with Sarita Bajaj, transferring 1,11,800 (One Lakh Eleven Thousand Eight Hundred) shares of Bajaj Buildcon Pvt. Ltd., which belonged to the informant, to her, in strict compliance with the terms of the family partition. It is important to note here that while the informant also resigned from Balaji Electrosteels Limited, as indicated in a notice, dated August 30, 2021, he did not transfer the shares of Balaji Electrosteels Limited, despite being obligated to do so. On February 27, 2021, the informant executed another instrument of transfer, through which he transferred 3,20,000 (Three Lakh Twenty Thousand) shares of Bajaj Buildcon Pvt. ltd to Awi Bajaj. These share transfers were carried out in full compliance with the provisions of the Companies Act, and the relevant details were duly communicated to the Registrar of Companies. In fact, the informant formally surrendered the shares to be transferred, and a certificate of transfer was subsequently issued. The instruments of transfer were properly stamped, executed in the presence of witnesses, and have never been contested or disputed previously. It is important to note that on February 28, 2021, a meeting of the Board of Directors of Bajaj Buildcon Pvt. Ltd. was held, during which it was resolved to accept the informant's resignation from the Directorship of the company. Ajay Kumar Bajaj was authorized to file DIR-12 and any other required documents with the Registrar of Companies, as per the provisions of the Companies Act. Another Board meeting of Balaji Electrosteels Limited took place, and through a resolution, dated August 31, 2021, the informant's resignation from the company was formally accepted. On April 3, 2021, another meeting of the Board of Directors of Bajaj Buildcon Pvt. Ltd. was held. The informant claims that he was not notified, informed, or made aware of the meeting.

The informant had already initiated proceedings before the National Company Law Tribunal, Kolkata Bench, in 2022, seeking a declaration that the instruments of transfer, dated February 27, 2021 were forged and illegal, along with other related reliefs. Notably, certain terms of the Memorandum of Family Partition were not complied with or honoured by the informant. In response, Ajay Kumar Bajaj had filed a suit for partition in the Court of Sub-Judge-1, Patna, which has been registered as a Title Suit of 2023. Among other allegations, the informant alleged that Kanika Buildcon Private Limited took a loan of Rs. 9,13,00,000.00 (Nine Crore Thirteen Lakh) only from Mandyati Dealcom Private Limited for the period between 2010 and 2017. The informant also claimed that according to their understanding, the loan does not incur any interest. 

Under the terms of the family partition, Kanika Buildcon was transferred to the informant, while Mandyati Dealcom was transferred to Ajay Kumar Bajaj. As a result, the rights and liabilities associated with the respective companies were also transferred to the respective parties. Ajay Kumar Bajaj sent a letter under the provisions of the Bankruptcy and Insolvency Code, demanding that Kanika Buildcon Pvt. Ltd. pay an amount of Rs. 18,37,51,400/- (Eighteen Crore Thirty Seven Lakh Fifty One Thousand Four Hundred) only. 

Besides this, an application was filed by Mandyati Dealcom Pvt. Ltd. against Kanika Buildcon Pvt. Ltd. before the National Company Law Tribunal, Kolkata Bench in 2022, seeking recovery of Rs. 18,37,51,400/- (Eighteen Crore Thirty Seven Lakh Fifty One Thousand Four Hundred) only, which includes both the principal amount of Rs. 1,22,50,000/- and interest of Rs. 17,15,01,400. 

During the proceedings before the National Company Law Tribunal, it was admitted that Kanika Buildcon Pvt. Ltd. owes Rs. 1,22,50,000. On November 8, 2023, the Tribunal admitted the application and initiated the insolvency resolution process for Kanika Buildcon Pvt. Ltd. Kanika Buildcon Pvt. Ltd. filed an appeal before the National Company Law Appellate Tribunal, Principal Bench, New Delhi, registered as Company Appeal (AT) No. 1540 of 2020. In connection with this, a demand draft for Rs. 1,22,50,000/- was handed over to Mandyati Dealcom Pvt. Ltd., as evident from the order, dated December 4, 2023.

Notably, in the counter affidavit, filed by Sushil Kumar Bajaj, the Respondent No. 5, dated February 4, 2025, the High Court found that the accused individually and unlawfully transferred the share of Respondent No. 5 (the informant) amounting to Rs. 1,98,50,000/- to Awi Bajaj (Petitioner No. 3), and Rs. 69,10,000/- to Sarita Bajaj (Petitioner No. 1). These transfers were made using forged share transfer deeds. The transfer was not authorized by the Board of Directors, nor were the transferees’ signatures obtained.

Although the transfer of shares was recorded with a Board Resolution, dated April 3, 2021, Respondent No. 5 (the informant) was not notified of the meeting, nor were the transferees informed. In collusion with C.A., Asit Baron Paul, the accused parties falsified the share transfer, and forged documents were submitted, which are now part of the records at the Register of Companies.. In regard to the loan amount, being levied on the Kanika Buildcon (which is operated by Respondent No. 5) the Respondent submits that before the partition, both the petitioners and Respondent No. 5 (the informant) jointly handled the company and financially supported each other. As part of this arrangement, Kanika Buildcon managed by Respondent No. 5, took a loan/advance of Rs. 9,13,00,000/- from Mandyati Dealcom, owned by the accused (petitioners), between September, 2010 and April, 2017, which was mostly repaid.

However, after the family partition, Mandyati Dealcom unexpectedly demanded Rs. 18,06,20,352/- (eighteen crores, six lakhs, twenty thousand, three hundred and fifty-two), while only Rs. 1,22,50,000/- remained outstanding against the original loan of Rs. 9,13,00,000/-. Later, Respondent No. 5 discovered that Ajay Kumar Bajaj had filed a false case in the Company Court, claiming that, as a Director of Kanika Buildcon, he had written a letter to Sushil Bajaj (Respondent No. 5/informant), the then Director of Mandyati Dealcom, accepting a loan of Rs. 10,00,00,000/- with interest. For the same, an application was filed under Section 7 of Insolvency and Bankruptcy Code (IBC) by the Petitioners in December, 2022, claiming an amount of Rs. 18,37,51,400/- which include principal amount of Rs. 1,22,50,000/- and the interest of 17,15,01,400/- till 31.07.2022. Date of default for the same was mentioned as August 2, 2021. In the application under Section 7 of IBC, the Appellant claimed that conditions of loans were set out in writing in letter, dated September 20, 2010, written by Director of the Corporate Debtor Company to the Financial Creditor. The matter was first adjudicated by NCLT, Kolkata Bench and later went in appeal to NCLAT New Delhi.

 

Justice Bibek Chaudhuri refuses to quash FIR because forgery is a serious offence with criminal liability, decided not to evaluate merit of allegations at FIR stage

In Sarita Baja & Ors. vs. The State of Bihar through the Secretary, Home Department, Government of Bihar & Ors. (2025), Justice Bibek Chaudhuri of Patna High Court concluded:"The issue involving forgery and a criminal investigation has not been complained of by any instrumentality of the State. The dispute is absolutely private in nature involving two full brothers and their families in respect of partition and subsequent financial irregularity of family-owned companies. Therefore, no writ under Article 226 of the Constitution of India lies. The instant writ petition is, thus, dismissed on contest." The judgement was delivered on May 9, 2025. The two other petitioners are: Ajay Kumar Bajaj and Awi Bajaj. The other four respondents are: Additional Chief Secretary, the Home Department, Government of Bihar, Senior Superintendent of Police, Patna, Station House Officer, Kotwali, Patna and Sushil Kumar Bajaj.

The Court refused to quash the FIR lodged in Kotwali, Patna dated August 18, 2023 because "Forgery (under Section 463 IPC) and using forged documents (under Section 471 IPC) are considered serious offences with substantial criminal liability. This Court recognize that quashing an FIR for such serious offenses like forgery could undermine the integrity of the legal system and prevent the discovery of the truth. At the stage of the FIR, the Court will not evaluate the merit of the allegations. This Court believes that the police are required to investigate the facts and verify the authenticity of the documents before a final decision is made." 

The Court observed:"The writ courts often do not delve deeply into factual disputes and the evidences as to whether the signatures done on Securities Transfer Form (SH-4) was fabricated or not and so the Court can not come to the conclusion as to whether the signature is forged or not but has come across the Judgement of NCLAT, New Delhi where it is seen that the Petitioners were previously capable of producing false document."

The petitioner had invoked Constitutional writ jurisdiction of the Court under Article 226 of the Constitution of India for issuance of a writ in the nature of Certiorari for quashing the FIR registered on January 16, 2024 alfor the offences alleged to have been committed under Sections 406, 420, 467, 468 and 471 read with Section 34 of the Indian Penal Code, 1860. 

On January 16, 2024, Sushil Kumar Bajaj, the brother of Petitioner No. 2, had submitted a written complaint to alleging that Ajay Kumar Bajaj (son of Late Purshottam Das), Awi Bajaj (son of Ajay Kumar Bajaj), Sarita Bajaj (wife of Ajay Kumar Bajaj), and Asit Baran Paul (Chartered Accountant) were involved in fabricating documents to unlawfully transfer of shares of Bajaj Buildcon Pvt. Ltd., which belonged to him, into the names of Awi Bajaj and Sarita Bajaj. He further alleged that the accused forged a letter to illegally withdraw funds from the account of Kanika Buildcon Pvt. Ltd., and subsequently transferred the money to another company, Mandyati Dealcom Private Limited. The complainant, Sushil Kumar Bajaj, and the 4th accused, Ajay Kumar Bajaj, are full brothers. On February 17, 2021, both parties had entered into a Memorandum of Understanding (MOU)/Family Partition agreement. According to the agreement, it was decided that Bajaj Buildcon Private Limited, alongwith other associated companies, would be transferred to Ajay Kumar Bajaj. Additionally, the parties agreed to close all existing bank accounts of the respective companies and subsequently will transfer the shares. The terms of the Family Partition clearly indicate that the first party refers to Sushil Kumar Bajaj and his family, while the second party refers to Ajay Kumar Bajaj and his family. Clause 1 of the memorandum outlines the companies that will be transferred to the first party (the informant), and Clause 2 details the companies that will be given to the second party (Ajay Kumar Bajaj) and his family. The informant has acknowledged the existence of this partition deed in his written complaint. Additionally, it has been confirmed that following the transfer of ownership, the shares of the respective companies will also be transferred to the names of the relevant parties and their families. In accordance with the agreed arrangement, petitioner No. 1, Sarita Bajaj, and Petitioner No. 3, Awi Bajaj, were appointed as Directors of Bajaj Buildcon Pvt.Ltd. On 27.02.2021, the informant submitted his resignation from the Directorship of Bajaj Buildcon Pvt.Ltd. vide a notice dated 27.02.2021 and executed a formal instrument of transfer as required under Section 56 of the Companies Act, 2013. On the same date, i.e., on 27.02.2021, the informant executed two instruments of transfer. One instrument was executed with Sarita Bajaj, transferring 1,11,800 (One Lakh Eleven Thousand Eight Hundred) shares of Bajaj Buildcon Pvt. Ltd., which belonged to the informant, to her, in strict compliance with the terms of the family partition. It is important to note here that while the informant also resigned from Balaji Electrosteels Limited, as indicated in a notice, dated 30.08.2021, he did not transfer the shares of Balaji Electrosteels Limited, despite being obligated to do so.

On 27.02.2021, the informant executed another instrument of transfer, through which he transferred 3,20,000 (Three Lakh Twenty Thousand) shares of Bajaj Buildcon Pvt. ltd to Awi Bajaj. These share transfers were carried out in full compliance with the provisions of the Companies Act, and the relevant details were duly communicated to the Registrar of Companies. In fact, the informant formally surrendered the shares to be transferred, and a certificate of transfer was subsequently  issued. The instruments of transfer were properly stamped, executed in the presence of witnesses, and have never been contested or disputed previously. It is important to note that on 28.02.2021, a meeting of the Board of Directors of Bajaj Buildcon Pvt. Ltd. was held, during which it was resolved to accept the informant's resignation from the Directorship of the company.

Notably, Ajay Kumar Bajaj was authorized to file DIR-12 and any other required documents with the Registrar of Companies, as per the provisions of the Companies Act. Similarly, another Board meeting of Balaji Electrosteels Limited took place, and through a  resolution, dated 31.08.2021, the informant's resignation from the company was formally accepted. On 03.04.2021, another meeting of the Board of Directors of Bajaj Buildcon Pvt. Ltd. was held. The informant claims that he was not notified, informed, or made aware of the meeting the informant has already initiated proceedings before the National Company Law Tribunal, Kolkata Bench, under C.P. No. 250 KB/2022, seeking a declaration that the instruments of transfer, dated 27.02.2021 are forged and illegal, along with other related reliefs.

It is important to note that certain terms of the Memorandum of Family Partition have not been complied with or honoured by the  informant.

In response, Ajay Kumar Bajaj filed a suit for partition in the Court of Sub-Judge-1, Patna, which was registered as Title Suit No. 02 of 2023.

The informant alleges that Kanika Buildcon Private Limited took a loan of Rs. 9,13,00,000.00 (Nine Crore Thirteen Lakh) only from Mandyati Dealcom Private Limited for the period between 2010 and 2017. The informant further claims that according to their understanding, the loan does not incur any interest. It is important to note that under the terms of the family partition, Kanika Buildcon was transferred to the informant, while Mandyati Dealcom was transferred to Ajay Kumar Bajaj. As a result, the rights and liabilities associated with the respective companies were also transferred to the respective parties. Ajay Kumar Bajaj sent a letter under the provisions of the Bankruptcy and Insolvency Code, demanding that Kanika Buildcon Pvt. Ltd. pay an amount of Rs. 18,37,51,400/- (Eighteen Crore Thirty Seven Lakh Fifty One Thousand Four Hundred) only. Additionally, an application has been filed by Mandyati Dealcom Pvt. Ltd. against Kanika Buildcon Pvt. Ltd. before the National Company Law Tribunal, Kolkata Bench, under CP (IB) No. 327/KB/2022, seeking recovery of Rs. 18,37,51,400/- (Eighteen Crore Thirty Seven Lakh Fifty One Thousand Four Hundred) only, which includes both the principal amount of Rs. 1,22,50,000/- and interest of Rs. 17,15,01,400/-.

During the proceedings before the National Company Law Tribunal, it was admitted that Kanika Buildcon Pvt. Ltd. owes Rs. 1,22,50,000. On 08.11.2023, the Tribunal admitted the application and initiated the insolvency resolution process for Kanika Buildcon Pvt. Ltd. Kanika Buildcon Pvt. Ltd. filed an appeal before the National Company Law Appellate Tribunal, Principal Bench, New Delhi, registered as Company Appeal (AT) No. 1540 of 2020. In connection with this, a demand draft for Rs. 1,22,50,000/- was handed over to Mandyati Dealcom Pvt. Ltd., as evident from the order, dated 04.12.2023.

The Court found that the accused individually and unlawfully  transferred the share of Respondent No. 5 (the informant) amounting to Rs. 1,98,50,000/- to Awi Bajaj (Petitioner No. 3), and Rs. 69,10,000/- to Sarita Bajaj (Petitioner No. 1). These transfers were made using forged share transfer deeds. The transfer was not authorized by the Board of Directors, nor were the transferees’ signatures obtained.

Although the transfer of shares was recorded with a Board Resolution, dated April 3, 2021, Respondent No. 5 (the informant) was not notified of the meeting, nor were the transferees informed. In collusion with C.A., Asit Baron Paul, the accused parties alsified the share transfer, and forged documents were submitted, which are now part of the records at the Register of Companies.

In regard to the loan amount, being levied on the Kanika Buildcon (which is operated by Respondent No. 5) the Respondent submits that before the partition, both the petitioners and Respondent No. 5 (the informant) jointly handled the company and financially supported each other. As part of this arrangement, Kanika Buildcon managed by Respondent No. 5, took a loan/advance of Rs. 9,13,00,000/- from Mandyati Dealcom, owned by the accused (petitioners), between September, 2010 and April, 2017, which was mostly repaid. However, after the family partition, Mandyati Dealcom unexpectedly demanded Rs. 18,06,20,352/- (eighteen crores, six lakhs, twenty thousand, three hundred and fifty-two), while only Rs. 1,22,50,000/- remained outstanding against the original loan of Rs. 9,13,00,000/-. 

Later on, the Respondent No. 5 discovered that Ajay Kumar Bajaj had filed a false case in the Company Kanika Buildcon, he had written a letter to Sushil Bajaj (Respondent No. 5/informant), the then Director of Mandyati Dealcom, accepting a loan of Rs. 10,00,00,000/- with interest. For the same, an application was filed under Section 7 of Insolvency and Bankruptcy Code (IBC) by the present Petitioners in December, 2022, claiming an amount of Rs. 18,37,51,400/- which include principal amount of Rs. 1,22,50,000/- and the interest of 17,15,01,400/- till 31.07.2022. Date of default for the same was mentioned as 02.08.2021. In the application under Section 7 of Insolvency and Bankruptcy Code, the Appellant claimed that conditions of loans were set out in writing in letter, dated 20.09.2010, written by Director of the Corporate Debtor Company to the Financial Creditor. The matter was first adjudicated by National Company Law Tribunal, Kolkata Bench and later went in appeal to National Company Law Appellate Tribunal, Principal Bench, New Delhi. 

It finding reads: “24. Ajay Kumar Bajaj was Director from 12.05.2014 Buildcon Private Limited' i.e.. the Corporate Debtor. Letter dated 20.09.2010, which is sheet anchor of the Financial Creditor to contend that there was interest component of 12% P.A. clearly becomes unauthorised and unreliable. Ajay Kumar Bajaj was not Director on 20.09.2010 of the Corporate Debtor and could not have written to the Financial Creditor, containing the terms and conditions of loan whereas no loan was ever extended by Financial Creditor to the Corporate Debtor of the terms and conditions as contained in the Letter dated 20.09.2010. Letter dated 20.09.2010 was impeached and termed as fabricated Letter.” 

It also found: "30. The sequence of the event and transaction between the Parties clearly proves that transfer of the amount by Financial Creditor to the Appellant were done by one Family Company to another Family Company and was not by way of loan nor any disbursal for any time value of money has been proved from any material on the record.” 

Taking note of these findings, the High Court observed that it "is convinced that the allegation made by the Petitioner for outstanding loan is frivolous as the Learned Court has already adjudicated the matter in detail and has come to its finding."

Justice Arvind Singh Chandel orders re-consideration dismissal order

In Dilip Kumar vs. The State of Bihar through the Principal Secretary, Home Department, Government of Bihar & Ors. (2025), Justice Arvind Singh Chandel concluded:"Considering the submissions made by both the counsels, the petition is disposed of with liberty to the petitioner to approach before the respondents who shall re-consider the order of dismissal of the petitioner in the light of mandate of the Hon’ble Apex Court in the cases so referred earlier herein. It is further directed that the competent authority will exercise and conclude the proceeding as early as possible probably within 60 days from the date of receipt/production of a copy of this Court and pass a reasoned order." It added that the petitioner was granted a liberty to approach the Court again if occasion will arise subsequently. The petition was disposed of. The judgement was delivered on May 1, 2025.

The  petitioner had prayed for issuance of an appropriate writ, order, direction or directions in nature of Mandamus directing and commanding the concerned respondents to set aside the impugned order dated 15.10.2016 dismissing the petitioner passed by the S.P. Kaimur (Bhabhua) in Departmental Proceeding and also set aside the impugned order passed by the DIG Shahabad Range in appeal of petitioner on 23.12.2016. He also prayed for issuance of an appropriate writ order or direction in nature of Mandamus directing and commanding the concerned authorities to reinstate the petitioner on his own post with all consequential benefits, in term of his acquittal in alleged Criminal Case by the Trial Court. He sought issuance of an appropriate writ order or direction in nature of Mandamus directing and commanding the concerned respondent to reinstate the petitioner on his own post with all consequential benefits, in term of his acquittal in alleged criminal case by the Trial Court as the others have been benefited in similar matter in respect of High Court's order/judgments as well as Supreme Court Judgments. 

The other respondents are: Director General-Cum- I.G. of Police, Bihar, Deputy Inspector General of Police, Shahabad Range, Dehri-On-Sone, Rohtas. Superintendent of Police, Kaimur (Bhabhua). The counsel submitted that the matter of the petitioner is squarely covered with the observations made in the case of Capt. M. Paul Anthony vs. Bharat Gold Mines Ltd. and Ors. 1999 (3) SCC 379, G.M. Tank Vs. State of Gujrat and Ors. 2006 (5) SCC 446 and Ram Lal Vs. State of Rajasthan and Ors. 2024 (1) SCC. 

These referred judgment passed by the Supreme Court, which has been relied upon by the Co-ordinate Bench of this Court also in the case of Prakash Kumar Paswan vs. The State of Bihar in CWJC No. 4084 of 2020.

... 

Patna High Court sets aside judgment by Special Judge, Vigilance-II, Patna in Koshi Hydal Power Station, Birpur, Saharsa case

In Vishwanath Gangul v. State of Bihar, Justice Sunil Kumar Panwar, Patna High Court found force in the submissions made on behalf of the appellants. He inferred that the submissions of the Vigilance is devoid of any merits. By its judgement, the High Court set aside the judgment of conviction and order of sentence dated February 7, 2012 passed by Special Judge, Vigilance-II, Patna in connection with Special Case No. 7 of 1998, arising out of Vigilance P.S. Case No. 7/1998. It acquitted all the appellants of all the charges. They were discharged from the liabilities of their bail bonds.

The appeals were filed against the judgment of conviction and order of Special Judge, Vigilance-II, Patna, whereby and whereunder the accused appellants and others were found guilty and convicted and convicts Kapildeo Narain Prasad Sinha, Vishwanath Ganguli, Shashinath Jha, Deep Narain Mandal and Anil Kumar Rai were sentenced to undergo rigorous imprisonment for one year for the offence punishable under Section 120(B) of the Indian Penal Code (IPC), rigorous imprisonment for one year for the offence punishable under Section 420 of the IPC, rigorous imprisonment for one year for the offence punishable under Section 467 I.P.C, rigorous imprisonment for one year for the offence punishable under Section 468 I.P.C, rigorous imprisonment for one year for the offence under Section 471 of the I.P.C. The convicts Kapildeo Narain Prasad Sinha, Vishwanath Ganguli, Shashinath Jha and Deep Narain Mandal were sentenced to undergo rigorous imprisonment for a period of one year under Section 13(10(d) of the Prevention of Corruption Act, 1988. The convict Anil Kumar Rai was sentenced to undergo rigorous imprisonment for six months under Section 12 of the Prevention of Corruption Act. All the sentences were directed to run concurrently.

The case of the prosecution was that an inquiry was conducted by the Crime Investigation Department and it was found that the estimate was prepared in the year 1986 for capital maintenance of Unit No. II of Koshi Hydal Power Station, Birpur, Saharsa under the supervision of Larson & Turbo Company, Calcutta. This estimate was prepared by the engineers of Larson & Turbo after physical verification of Unit No-II at Birpur. This estimate was prepared for Rs. 5,75,795/-, but the file relating to the said estimate could not return from Head Office, Bihar State Electricity Board (BSEB), Vidyut Bhawan, Patna to Birpur and then in November, 1988, on the same basis, another estimate was prepared for Rs. 6,36,852/-. There was difference of time of one year and eleven months in between the first and second estimate and during that period there was price rise and due to which the amount of second estimate was raised. The estimates were prepared by the local Executive Engineer, Assistant Engineer and Junior Engineer. 

The second estimate was sent to Chief Engineer, Hydal and Investigation S.B. Ram for its acceptance, who sent it to the then Project Manager, Jal Vidyut Pratishtan, Sikidri K.P. Sinha and Executive Engineer (Civil) Ranchi V.N. Ganguli. These two persons arbitrarily enhanced the estimate to Rs. 8,93,330/- without obtaining price list of the articles. In enhancement of the estimate cost, the role was played by S.P. Ram, K.P. Sinha, V.N. Ganguli and D.N. Mandal, the then Executive Engineers, Koshi Hydal Power Station. It was also alleged that Phulanand Jha, the then Electrical Execution Engineer (now dead) was also one of the associates in enhancement of rate of estimate. D.N. Mandal was camping in Ranchi from Birpur only for this work. The second estimate of Rs. 6,36,852/- was also prepared by him and again a third estimate of Rs. 8,93,330/- was prepared in connivance of D.N. Mandal and other officials. In the file relating to the estimate which was sent to Chief Engineer Ranchi for its acceptance, it was specifically provided that the basis of estimate is Larson & Turbo but the accused persons did not obtain any rate of articles from Larson & Turbo and arbitrarily they enhanced the estimates. 

It was alleged that the materials required for capital maintenance of the second unit was purchased from the market without giving any advertisement or without obtaining any quotation, and as such, the accused persons arbitrarily enhanced the amount of third estimate. The accused persons even did not contact the Larson & Turbo company at the time of preparation of estimate. After that the work was got done by M/s Gaurav Constructions, Birpur on the basis of third estimate and its payment was made by Chief Engineer, Hydal and Investigation, Ranchi. M/s Gaurav Constructions & Company is not authorized for the work, rather it works as middleman and in fact the work was got done by technically expert firm in Ranchi.

On the basis of this report, Vigilance P.S. Case No. 7 of 1998 was registered under Sections 120(B), 420, 468, 467, 471 of the IPC, Section 5(2) r/w 5(1)(d) of the P.C Act, 1947, corresponding to Section 13(2) r/w 13(1)(d) of the P.C. Act, 1988. After completion of the investigation, charge sheet was submitted against altogether six accused persons above named under the aforesaid sections and thereafter cognizance was taken and the accused persons were put on trial. 

The counsel of the Vigilance has submitted that three estimates were prepared for capital maintenance of Unit No-II of Koshi Hydal Power Station, Birpur. The difference of amount in first and second estimates was due to time gape of one year and eleven months and price rise during that period. The first and second estimates are not under allegation in this case because it were prepared under the assistance of Larson @ Tubro company. However, the third estimate was prepared by the accused persons in connivance with each other without consultation of Larson @ Tubro Company, whereas it was specifically provided that estimate was to be prepared with the assistance of Larson @ Tubro and price fixed by it. 

Notably, Sant Kumar Sharma, the Investigating Officer (IO) has also stated in his evidence in para-5 that during the course of investigation, he came to know that the estimate was to be prepared with the assistance of Larson @ Tubro and the work was to be done by it, but in spite of that the accused persons did not follow the mandate without assigning any reason in this regard and arbitrarily prepared the third estimate enhancing the cost. 

The counsel for the Vigilance had submitted that the work was to be done by Larson @ Tubro company, but in spite of that the accused persons did not prefer to get the work done by Larson @ Tubro without assigning any reason in this regard and they arbitrarily got the work done by Gaurav Construction company. From the materials available on record, it is apparent that the accused persons prepared third estimate enhancing the amount of second estimate arbitrarily without any valid reason in connivance with each others and for their own benefit which caused loss of Rs, 2,56,478/- to the BSEB. The appellant's counsel submitted that prosecution was required to prove with cogent evidence of material but the entire case is based upon surmises and conjecture. The Court found appellant's submission to be convincing.