Manish Agarwal And Another vs. State Of Punjab

Facts

The appellants, Manish Agarwal and another, are Directors of M/s Insta Chemi Private Limited. They are appealing an order dated 30.07.2024 by the Additional Sessions Judge, Sangrur, which dismissed their application for bail under Section 439 Cr.P.C. The case arises from FIR No. 0044 dated 22.03.2024, registered at Police Station City Sunam, District Sangrur, Punjab, under Sections 302 and 120-B of the IPC, Section 61(1) of the Punjab and Excise Act, and Section 3(2)(V) of the SC and ST Act, 1989. The FIR was based on a complaint alleging that spurious liquor, purchased from Mangal Singh and supplied by others including Harmanpreet Singh, caused the deaths of several individuals, including the complainant's father. The appellants' company allegedly supplied denatured ethyl alcohol, branded "INSTASOL," to Harmanpreet Singh. The sales were documented with invoices, bills, and GST payments.

Held

The Court allowed the appeal and ordered the release of the appellants on bail. The Court noted that the only role attributed to the appellants was the supply of Ethanol to co-accused Harmanpreet Singh and Gurlal, who allegedly manufactured liquor using the product. However, there was no evidence to suggest that the appellants had conspired with Harmanpreet Singh and Gurlal in any manner. The Court further observed that the appellants were arrested on 18.04.2024, and a final report under Section 173 Cr.P.C. had been presented. Crucially, the State failed to place on record any evidence indicating that the appellants were capable of influencing prosecution witnesses or that there was a likelihood of tampering with evidence by them. Given these circumstances, the Court concluded that the appeal deserved to be allowed. The appellants were ordered to be released on bail subject to furnishing bail bonds/surety bonds to the satisfaction of the trial Court/Duty Magistrate/Chief Judicial Magistrate concerned. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the appellants, as Directors of M/s Insta Chemi Private Limited, are vicariously liable for the alleged misuse of denatured ethyl alcohol supplied by their company for the manufacture of spurious liquor, thereby attracting charges under Sections 302 and 120-B of the IPC and Section 61(1) of the Punjab and Excise Act, and Section 3(2)(V) of the SC and ST Act, 1989? Petitioner's Arguments: - The appellants are Directors with an oversight role, not directly involved in daily operations. - The sale of denatured ethyl alcohol (INSTASOL) was a routine business transaction, properly documented with invoices, bills, and GST payments, and there are no legal restrictions on such sales. - The company acted with transparency and complied with all legal requirements. - There was no notification or apprehension from regulatory authorities regarding the sale. - The police failed to collect evidence of intent to sell for illegal purposes. - The appellants had no direct conversation or meetings with other accused, and no evidence of call detail records or location charts shows connivance. - The main accused misused the product for illicit liquor manufacturing, and the appellants' involvement cannot be inferred. - No evidence suggests conspiracy or prior knowledge of the illicit plans. - Offences under Sections 468, 469, and 471 IPC are wrongly invoked as no documents were forged. - The sale was made in good faith without knowledge of the accused's illicit plans or the victims' consumption. - No offence under Section 3(2)(V) of the SC/ST Act is made out. Respondent's Arguments: - Several drums of Ethanol manufactured by the appellants' company were recovered from the main accused, Harmanpreet Singh. - Based on Harmanpreet Singh's disclosure statement, the appellants were arrayed as accused. - Chemicals used by Harmanpreet and Gurlal were purchased from the appellants' company for making spurious liquor. - The State counsel could not point out any evidence showing the appellants' knowledge that their product would be used for illicit liquor manufacturing.