Soni Patel vs. The State Of Bihar
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The petitioners, Jagdish Prasad (proprietor of M/s Tirupati Refrigeration), Soni Patel, and Ravi Patel, sought anticipatory bail in connection with S.K. Puri P.S. Case No. 282 of 2024, registered for offences under Sections 420, 409, and 120(B) of the Indian Penal Code. The case was initiated by the Regional Head of Bank of Baroda. M/s Tirupati Refrigeration, a distributor of Voltas-Tata products, obtained cash credit facilities of Rs. 300 lakhs on October 16, 2023. Inspections initially found sufficient stock. However, an audit on November 29, 2023, revealed no adverse findings. A subsequent inspection on April 4, 2024, found minimal stock and no inventory. The firm defaulted on loan installments within five months, leading to the credit facility being classified as NPA on June 14, 2024. The prosecution alleged that Jagdish Prasad, along with guarantors Soni Patel and Ravi Patel, conspired to defalcate the loan amount.
Held
The Court considered the arguments and the materials on record. Regarding the maintainability of the FIR and the nature of the dispute, the Court noted that within five months of loan disbursement, the petitioner defaulted on payments. Bank inspections revealed that all stocks were removed without invoices, GST bills, or vouchers. Prima facie, the Court found that the petitioner, Jagdish Prasad, intended to defraud the bank from the outset through asset stripping. Considering the gravity of the offence, the nature of the allegations, and the fact that Jagdish Prasad is the proprietor and borrower with a prior criminal antecedent of a similar nature, the Court was not inclined to grant anticipatory bail to Jagdish Prasad. Consequently, his bail application was rejected. However, concerning Soni Patel and Ravi Patel, who were guarantors to the loan, the Court was inclined to grant them the privilege of anticipatory bail. Their bail application was allowed, and they were directed to be released on bail upon furnishing a bail bond of Rs. 10,000/- with two sureties of like amount, subject to conditions under Section 482(2) of the Bharatiya Nagarik Suraksha Sanhita, within four weeks of their arrest or surrender.
Key Issues
1. Whether the present FIR is maintainable as the dispute pertains to a civil nature, specifically a loan default, and the Debt Recovery Tribunal (DRT) is the appropriate forum, given that the bank has already filed Case No. OA/411/2024 before the DRT, Patna? (Question of law and mixed fact and law) 2. Whether the guarantors, Soni Patel and Ravi Patel, are liable to be implicated in a criminal case for loan default when their role is merely that of guarantors? (Question of mixed fact and law) Petitioner's Arguments: The petitioners argued that the case is civil in nature, relating to a failed business, and the DRT is the appropriate forum. They contended that the FIR is not maintainable because the bank has already initiated proceedings before the DRT. They further argued that Soni Patel and Ravi Patel, being mere guarantors, have been falsely implicated. Revenue/State's Arguments: The State and the informant Bank vehemently opposed the anticipatory bail prayer. They argued that the petitioners embezzled the loan amount in a calculative manner within five months of approval, defrauding the bank of a substantial sum. They asserted that a serious offence was committed, requiring proper investigation, and custodial interrogation might be necessary.
Sections Cited
Section 420, Section 409, Section 120(B), Section 482(2)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER 4 04-05-2026 Heard learned counsel for the parties concerned.
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The petitioners apprehend their arrest in connection with S.K. Puri P.S. case no. 282 of 2024, registered for the offences punishable under Sections 420, 409 and 120(B) of the Indian Penal Code.
The prosecution story in brief is that the informant is the Regional head of Bank of Baroda. The petitioner Jagdish Patel is the proprietor of M/s Tirupati Refrigeration. The firm is wholeseller/distributor of Voltas- Tata products in Bihar. The firm got approval of cash credit facilities of Rs.300 lakhs (3 crores) on 16.10.2023. On various dates, officials of Branch made inspections and found sufficient stock in the godown. On 29.11.2023 the firm was audited and nothing adverse was found. When on 04.04.2024, the Branch officials inspected the godown, they found minimum stock and no inventory in the godown. Delay was found in payment of installment within 5 months of approval of loans. Since interest was not paid and turnover was not sufficient, the credit facilities was converted into NPA on 14.06.2024. The proprietor, Jagdish Prasad along with the two guarantors, namely Soni Patel and Ravi Patel, have defalcated the loan amount in conspiracy with each other.
Learned counsel for the petitioners submits that the petitioners have been falsely implicated in this case as the 3/5 present case is of civil nature and it relates to a failed business run by the proprietor, Jagdish Prasad. The other two co-accused are guarantors. He further submits that this is a case of loan default, hence Debt Recovery Tribunal (DRT) is it’s appropriate forum. The present FIR is not maintainable as the respondent bank has already proceeded by filing case no. OA/411/2024, before the DRT, Patna.
Learned counsel further submits that the other two co-accused are guarantors and merely for the said reason they have been roped into this case.
On the other hand learned counsel appearing on behalf of informant Bank as well as learned APP for the state vehemently opposed the prayer of Anticipatory bail and submits that the petitioners have embezzled the sanctioned loan amount in calculative manner within five months from the date of loan approval and have defrauded a huge amount of the Bank. The petitioners have committed a serious offence and proper investigation is required to be done in the present case. Therefore, custodial interrogation may be required.
I have heard learned counsel for the parties and gone through the material available on record.
From perusal of the FIR, it appears that within 5 4/5 months of the disbursement of the sanctioned loan amount the petitioner defaulted in the payment of the interest and installments to the bank. The bank officials inspected the stocks on 04.04.2024 and found that all the stocks were removed without any invoice. The petitioner has not brought any invoice, GST bills, vouchers on record. Prima facie, it appears that petitioner had intention to defraud the bank from very inception and orchestrated it by asset stripping.
Considering the gravity of offence and nature of allegation and the fact that the petitioner is proprietor and borrower of the firm and having one criminal antecedent of similar nature, I am not inclined to grant anticipatory bail to Jagdish Prasad (petitioner in Cr.Misc.77888 of 2025).
This bail application is, accordingly, rejected with respect to Jagdish Prasad.
In so far petitioner no. 1 and 2 in Cr. Misc. No. 79744 of 2025, namely, Soni Patel and Ravi Patel are concerned, they are guarantors to the loan disbursed, I am inclined to grant privilege of anticipatory bail to petitioners, namely, Soni Patel and Ravi Patel.
This bail application is, accordingly, allowed with respect to petitioner no. 1 and 2 in Cr. Misc. No. 79744 of 5/5 2025, namely, Soni Patel and Ravi Patel only.
Let the petitioners, namely, Soni Patel and Ravi Patel, in the event of their arrest or surrender before the Court below within four weeks, be released on bail on furnishing bail bond of Rs. 10,000/- (Ten Thousand) with two sureties of the like amount each to the satisfaction of learned Sub Divisional Judicial Magistrate, Patna, in connection with S.K. Puri Police Station Case No. 282 of 2024, subject to the condition laid down under Section 482 (2) of the Bharatiya Nagarik Suraksha Sanhita.
Siwani/- (Anil Kumar Sinha, J) U T
Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.