Uttarakhand High Court Grants Anticipatory Bail to Company Employee in Fraud Case

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Case Name

Mohit Kumar v. State of Uttarakhand (High Court of Uttarakhand)

Anticipatory Bail Application No. 930 of 2023

Date: 05th December 2023

Key Takeaways

• Anticipatory bail granted: The court allowed Mohit Kumar’s request for anticipatory bail, protecting him from arrest in connection with the case.
• Employee status considered: The court emphasized that Mohit Kumar was merely a salaried employee of the company, not a principal accused or beneficiary.
• Conditions imposed: The bail comes with strict conditions, including surrendering his passport and not contacting witnesses.
• Legal sections involved: The case involves serious charges under Sections 406, 420, 120B IPC, Section 3 of the Uttaranchal Depositors Protection of Interests of Depositors (in Financial Institutions) Act, 2005, Sections 3, 4, 5 (a, b, c, 5S) of the Reward Chit Fund Money Circulation Act, 1978, and Section 45(S) read with Section 58B(5A) of the Reserve Bank of India Act, 1934.

Issue

Should Mohit Kumar, a salaried employee of the accused company, be granted anticipatory bail in a case involving allegations of financial fraud and misappropriation of depositors’ funds?

Facts

• Who’s involved: Mohit Kumar (applicant) vs. State of Uttarakhand (respondent).
• Background: An FIR was filed against officials of Dhenu Agro Producer Company Ltd, including Mohit Kumar, for allegedly running fraudulent recurring deposit (RD) and fixed deposit (FD) schemes. The informant claimed he invested in these schemes and rented property to the company, but later the company vacated the property without paying rent or returning the invested money.
• Investigation status: The charge sheet was already filed, and Mohit Kumar was not arrested during the investigation. He claims to be only a salaried employee, not involved in the management or decision-making of the company.

Arguments

Applicant (Mohit Kumar)

• He was not arrested during the investigation.
• The charge sheet has already been filed.
• He is only a salaried employee of the company, not a key decision-maker or beneficiary of the alleged fraud.

State (Prosecution)

• Confirmed that the charge sheet has been filed and Mohit Kumar was not arrested during the investigation.
• Acknowledged that he is an employee of the company.

Key Legal Precedents

Note: The judgment does not explicitly cite any previous case law by name. However, it references the following statutory provisions:

• Sections 406, 420, 120B of the Indian Penal Code (IPC): Relating to criminal breach of trust, cheating, and criminal conspiracy.
• Section 3 of the Uttaranchal Depositors Protection of Interests of Depositors (in Financial Institutions) Act, 2005
• Sections 3, 4, 5 (a, b, c, 5S) of the Reward Chit Fund Money Circulation Act, 1978
• Section 45(S) read with Section 58B(5A) of the Reserve Bank of India Act, 1934

The court’s reasoning is based on the facts of the case and the applicant’s role, rather than on specific cited precedents.

Judgement

• Decision: The High Court granted anticipatory bail to Mohit Kumar.
• Reasoning: The court found that since Mohit Kumar was not arrested during the investigation, the charge sheet had already been filed, and he was only a salaried employee, it was appropriate to grant anticipatory bail.
• Conditions:

1. He must furnish a personal bond with two sureties.
2. He cannot approach any witness.
3. He cannot leave the country without court permission.
4. He must deposit his passport with the arresting officer (or provide an undertaking if he does not have one).
5. He must give undertakings to comply with these conditions.

FAQs

Q1: What is anticipatory bail?

A: Anticipatory bail is a legal provision that allows a person to seek bail in anticipation of an arrest on accusation of having committed a non-bailable offense.

Q2: Why was Mohit Kumar granted anticipatory bail?

A: The court noted that he was not arrested during the investigation, the charge sheet was already filed, and he was only a salaried employee, not a principal accused.

Q3: What conditions did the court impose on the bail?

A: He must not contact witnesses, cannot leave the country without permission, must deposit his passport, and must provide undertakings to comply with these conditions.

Q4: Does this mean Mohit Kumar is acquitted?

A: No, anticipatory bail only protects him from arrest at this stage. The criminal case will proceed as per law.

Q5: What laws was he accused of violating?

A: He was accused under several sections, including Sections 406, 420, 120B IPC, Section 3 of the Uttaranchal Depositors Protection of Interests of Depositors (in Financial Institutions) Act, 2005, Sections 3, 4, 5 (a, b, c, 5S) of the Reward Chit Fund Money Circulation Act, 1978, and Section 45(S) read with Section 58B(5A) of the Reserve Bank of India Act, 1934.