Patna High Court
Mohnish KumarversusThe State of Bihar
- Decided
- Disposal
- BAIL GRANTED
- Bench
- R P MISHRA
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
- Indian Penal Code — s. 34, 406, 420, 467, 468, 471
- Negotiable Instruments Act — s. 138
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
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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
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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
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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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