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Patna High Court

Mohnish KumarversusThe State of Bihar

Decided
Disposal
BAIL GRANTED

Holding

The court held that the settlement, full repayment and absence of fraudulent intent justify granting bail to the petitioner.

Summary

Mohnish Kumar was arrested in connection with a 2018 case alleging cheating, forgery and dishonour of cheques under several IPC sections and Section 138 of the Negotiable Instruments Act. The prosecution alleged that he and a co‑accused received Rs. 1.5 crore for a purported business venture and later defaulted on repayment. The petitioner claimed the dispute was purely commercial, that he had settled the matter by paying Rs. 38 lakh and returning cheques, and that there was no intention to cheat. He also highlighted that the co‑accused had already been granted anticipatory bail. Considering the settlement, full payment, and lack of evidence of fraudulent intent, the court decided to grant bail with monetary and surety conditions. The petitioner was ordered to be released on bail subject to compliance with the stipulated conditions.

Issues considered

  • Whether the petitioner is entitled to bail despite multiple criminal antecedents and charges under Sections 420, 406, 467, 468, 471, 34 IPC and Section 138 NI Act
  • Whether the settlement and full repayment negate the intention to cheat required for the offences

Legislation cited

Subjects

  • bail
  • cheating
  • fraud
  • settlement
  • Indian Penal Code
  • Negotiable Instruments Act
  • criminal procedure

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              CRIMINAL MISCELLANEOUS No.91700 of 2025
                       Arising Out of PS. Case No.-736 Year-2018 Thana- NAWADA District- Nawada
                 ======================================================
                 Mohnish Kumar Son of Shyam Nandan Lall R/O Mohalla- Madarsa
                 Sulemania Lane, Newab Bahadur Road, P.S.- Khajekala, District- Patna

                                                                                  ... ... Petitioner/s
                                                       Versus
                 The State of Bihar

                                                        ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s     :       Mr. Sanjay Kumar Singh, Advocate
                 For the Opposite Party/s :       Mr. Sanjay Kumar Singh, APP
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE RUDRA PRAKASH
                 MISHRA
                                       ORAL ORDER

3   23-02-2026             Heard learned counsel for the petitioner and learned APP

                   for the State. Perused the case diary.

                           2.      The petitioner seeks bail in connection with

                   Nawada Town P.S. Case No. 736 of 2018 instituted for the

                   offence under Sections 420, 406, 467, 468, 471 & 34 of the

                   Indian Penal Code and Section 138 of the Negotiable Instrument

                   Act.

                           3.      The prosecution case is based on the informant’s

                   written report alleging that the petitioner and Ajit Kumar Sinha

                   received Rs. 1.50 crore from the informant and Jitendra Kumar

                   between May 2015 and May 2016 on the assurance of investing

                   it in ‘Rajani Enterprises’ for an iron factory and coal business. It

                   is alleged that the accused cheated the informant by using
Patna High Court CR. MISC. No.91700 of 2025(3) dt.23-02-2026
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          forged bills, tenders, and work orders. An agreement dated

          17.05.2018 assured repayment of the amount by 17.05.2019,

          and cheques issued towards repayment were dishonoured due to

          closure of the account. Upon demand, the accused refused to

          return the money, citing business losses.

                  4.      It has been submitted on behalf of the petitioner

          that the petitioner is in custody since 15.10.2025. Petitioner

          bears seven (7) criminal antecedents, as per disclosure made in

          paragraph No. 3 of the bail application.

                  5.      It has been further submitted by the petitioner’s

          counsel that petitioner has been falsely implicated in the present

          case. The learned counsel for the petitioner submits that no

          offence under Sections 467, 468, or 471 of the IPC is made out,

          as there was no intention to cheat the informant and the dispute

          arises purely out of a business transaction. The petitioner, being

          the sole proprietor of ‘Rajni Enterprises’ engaged in the iron and

          coal business, has not committed any act of cheating. All

          disputes between the parties were amicably settled through a

          Settlement Agreement dated 06.01.2021, in which petitioner

          was required to pay Rs. 37,50,000/-, whereupon, the petitioner

          has paid Rs. 38,00,000/- to the informant on different dates,

          received back the original cheques, and placed on record bank
Patna High Court CR. MISC. No.91700 of 2025(3) dt.23-02-2026
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          statements (Annexure - P/4) and returned cheques in support

          thereof. Co-accused, namely, Ajit Kumar Sinha has been granted

          anticipatory bail by a Co-ordinate Bench of this Court vide

          order dated 26.04.2019, passed in Cr. Misc. No. 27468 of 2019.

          It is further submitted that although investigation has been

          completed and charge-sheet filed on 31.12.2025 under Sections

          420, 406, 467, 468, 471 IPC and Section 138 of the N.I. Act, in

          view of the settlement and full payment, continued incarceration

          of petitioner is unwarranted. It is, therefore, prayed that

          petitioner may be enlarged on bail.

                  6.      Learned A.P.P. for the State has vehemently

          opposed the prayer for grant of bail to the petitioner.

                  7.      Considering the aforesaid facts and circumstances

          of the case and period of custody of the petitioner, this Court is

          inclined to grant bail to the petitioner.

                  8.      Let the petitioner be released on bail, after framing

          of charge, if not already framed, on furnishing bail bonds of

          Rs. 15,000/- (Fifteen Thousand) with two sureties of the like

          amount each to the satisfaction of Court below/concerned Court

          in connection with Nawada Town P.S. Case No. 736 of 2018,

          subject to the following conditions:

                  (I) One of the bailors shall be own/close member of the
           Patna High Court CR. MISC. No.91700 of 2025(3) dt.23-02-2026
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                     family of the petitioner.

                             (II) The petitioner shall appear on each and every date

                     fixed at the trial. In case of default in such appearance on two

                     consecutive dates, the Trial Court will have liberty to cancel the

                     bail bonds of the petitioner.



                                                                 (Rudra Prakash Mishra, J)
Raj Kishore/-

U      T


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