Created by Fuzzy Cloud

Patna High Court

Chandra Kant PandeyversusThe State Of Bihar

Decided
Disposal
ALLOWED

Holding

Bail was granted to the petitioners subject to a bond, sureties and a strict payment undertaking.

Summary

The petitioners, who were Chairman and Manager of Ramgarh Primary Agricultural Credit Society (PACS), were implicated in a FIR under Sections 116(5) and 318(4) of the Bihar Nagrik Suraksha Sanhita for failing to supply the required quantity of Customed Milled Rice (CMR) to the State Food Corporation, resulting in a shortfall of Rs. 38,37,550. They argued that the non‑supply was a civil matter of price recovery, not a criminal offence, and offered to discharge the liability in six installments, having already deposited Rs. 7,00,000. The State and the cooperating bank opposed bail, alleging misappropriation of public funds. The Court, after considering the petitioners’ undertaking and the conditions under Section 482(2) of the Bharatiya Nagrik Suraksha Sanhita, 2023, ordered that bail be granted subject to a bond of Rs. 20,000 with two sureties and compliance with the payment schedule. Failure to honor the payment undertaking would result in cancellation of the bail bonds. The order effectively released the petitioners on bail pending further trial.

Issues considered

  • Whether the alleged failure to supply CMR constitutes a bailable offence under Sections 116(5) and 318(4) of the Bihar Nagrik Suraksha Sanhita.
  • Whether the petitioners’ undertaking to pay the outstanding amount and deposit bail bonds justifies the grant of bail under Section 482(2) of the Bharatiya Nagrik Suraksha Sanhita, 2023.

Legislation cited

Subjects

  • bail
  • cooperative bank
  • procurement scheme
  • Customed Milled Rice
  • financial default
  • criminal procedure
  • Section 116
  • Section 318
  • Section 482

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               CRIMINAL MISCELLANEOUS No.2741 of 2026
                    Arising Out of PS. Case No.-237 Year-2025 Thana- BHAGWANPUR District- Kaimur
                                                         (Bhabua)
                 ======================================================
           1.     Chandra Kant Pandey S/O Late Satnarayan Pandey @ Satya Narain Pandey
                  Resident Of Village- Ramgarh, P.s.- Bhagwanpur, Dist.- Kaimur
           2.    Md. Gyasuddin @ Md. Gayasuddin S/O Md. Abbas @ Abbas Resident Of
                 Village- Ramgarh, P.s.- Bhagwanpur, Dist.- Kaimur

                                                                                ... ... Petitioner/s
                                                      Versus
           1.    The State Of Bihar
           2.    The Sasaram Bhabhua Central Cooperative Bank ltd, Sasaram through its
                 Managing Director Bihar

                                                        ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s     :      Mr. Rakesh Kumar Jha, Advocate
                 For the Informant        :      Mr. Bindhyachal Rai, Advocate
                                                 Mr. Chandan Kumar, Advocate
                                                 Mr. Shivam Narayan Pandey, Advocate
                 For the Opposite Party/s :      Mr. Shailendra Kumar Singh, APP
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE HARISH KUMAR
                                       ORAL ORDER

2   04-02-2026                   Heard the parties.

                                 2. The petitioners apprehend their arrest in connection

                   with Bhagwanpur P.S. Case No. 237 of 2025, registered for the

                   offences punishable under Sections 116(5), 318(4) of the BNS.

                                 3. Allegedly, for the procurement year 2024-2025, the

                   Ramgarh PACS purchased 5891 qt. paddy but till date the last

                   date of supply of CMR (Customed Milled Rice) total CMR

                   (Customed Milled Rice) have not been supplied to the State

                   Food Corporation. The petitioners, who were holding the post of

                   Chairman and Manager of Ramgarh PACS were the custodian of
Patna High Court CR. MISC. No.2741 of 2026(2) dt.04-02-2026
                                            2/4




          the paddy and they have failed to supply the CMR equivalent to

          1668.50 qt to the tune of Rs. 38,37,550/-. In the aforesaid

          premise, the present FIR came to be instituted.

                       4. Learned Advocate for the petitioners submitted that

          under the procurement scheme, the PACS has to purchase paddy

          from the farmers for which cash-credit is granted by the

          Cooperative Bank. For milling work, the District Task Force

          selects the mill and the PACS is tagged with the selected mill.

          The mill so tagged has to supply CMR to the SFC through the

          PACS concerned and the PACS has to supply paddy to the

          Miller equivalent to the CMR so supplied by the latter and

          accordingly, SFC paid the price in the bank account of the

          PACS. The non supply of CMR is not a criminal offence but, is

          a matter of recovery of the price of the due CMR but only in

          order to wreck vengeance to the petitioners, the present FIR is

          came to be instituted. Despite the aforesaid facts, the petitioners

          are ready to discharge the liability in installments. The bonafide

          of the petitioners is also writ large, as they have also deposited

          Rs. 7,00,000/- on different dates to the opposite party no. 2. It is

          further contended that the petitioners are ready to deposit the

          rest of the amount to the tune of Rs. 31,37,550/ within one year

          in six installments.
Patna High Court CR. MISC. No.2741 of 2026(2) dt.04-02-2026
                                            3/4




                       5. On the other hand, learned Advocate for the State as

          well as the Bank vehemently opposed the bail application and

          submitted that petitioners have duped the public money which

          was meant for the farmers and as such does not deserve any

          sympathy of the Court.

                       6. Having considered the submissions advanced by

          the learned Advocates for the respective parties and taking note

          of the undertaking given before this Court by the petitioners that

          they are ready to deposit the rest of the due amount to the tune

          of Rs.31,37,550/- in six installments within one year from the

          date of receipt of this order, let the petitioners abovenamed be

          released on bail, in the event of their arrest or surrender before

          the court below within a period of four weeks from the date of

          receipt/production of a copy of this order, upon furnishing bail

          bonds of Rs.20,000/- (twenty five thousand) each with two

          sureties of the like amount each to the satisfaction of the learned

          CJM, Kaimur at Bhabua in connection with Bhagwanpur P.S.

          Case No. 237 of 2025, subject to the conditions laid down in

          Section 482(2) of the Bharatiya Nagrik Suraksha Sanhita, 2023,

          with the further conditions:

                       (i) Any defiance of the undertaking with respect to

          deposition of the rest of the due amount to the tune of
            Patna High Court CR. MISC. No.2741 of 2026(2) dt.04-02-2026
                                                        4/4




                      Rs.31,37,550/- in six installments shall entail cancellation of the

                      bail bonds of the petitioners, and

                                   (ii) that one of the bailors shall be the own/close

                      family members of the petitioners.



                                                  (Harish Kumar, J)
khushbu/-

U      T


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.