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Patna High Court

Chandan KumarversusThe State of Bihar

Decided
Disposal
DISMISSED

Holding

The bail application is dismissed.

Summary

The petitioner, Chandan Kumar, applied for bail in a case registered under Sections 406, 420, 421, 422 and 120B/34 of the Indian Penal Code, alleging forgery and misappropriation of public money. The prosecution alleged that he obtained a Rs 33 lakh loan from the Central Bank of India by mortgaging land, failed to repay, and sold the mortgaged property, thereby cheating the bank. The petitioner claimed the sale proceeds were intended to repay the loan, but the cheque from the purchaser could not be encashed. The bank contended that the petitioner’s intention from the outset was to avoid repayment and that he had already sold the mortgaged property. Considering the seriousness of the alleged economic offence and the large public amount involved, the court declined to grant bail. Consequently, the bail application was dismissed.

Issues considered

  • Whether bail should be granted to an accused charged with offences under Sections 406, 420, 421, 422 and 120B/34 of the IPC involving alleged fraud and misappropriation of public money.

Legislation cited

Subjects

  • bail
  • economic offence
  • fraud
  • forgery
  • misappropriation of public money
  • loan default
  • Indian Penal Code
  • criminal procedure

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              CRIMINAL MISCELLANEOUS No.91805 of 2025
                      Arising Out of PS. Case No.-143 Year-2022 Thana- JAMALPUR District- Munger
                 ======================================================
                 Chandan Kumar S/O Late Ramotar Paswan Resident of Village- Nayagaon
                 Durgasthan, Ward No. 6, P. S- East Colony, Jamalpur, District- Munger

                                                                                  ... ... Petitioner/s
                                                       Versus
           1.    The State of Bihar
           2.    The Branch Manager of the Central Bank of India, Station Road, Jamalpur,
                 P. S- Jamalpur District- Munger

                                                        ... ... Opposite Party/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :        Mr.Ratnakar Ambastha, Advocate
                 For the State           :        Mr.Mohammad Sufyan, APP
                 For the Bank            :        Mr. Ajit Kumar Sinha, Advocate
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE SANDEEP KUMAR
                                       ORAL ORDER

3   24-03-2026                   Heard learned counsel for the petitioner and learned

                   APP for the State.

                                 2. The petitioner seeks bail in connection with

                   Jamalpur P.S. Case No. 143 of 2022 registered for the offence

                   punishable under Sections 406, 420, 421, 422 and 120B/34 of

                   the Indian Penal Code.

                                 3. As per the prosecution case, the petitioner has

                   committed forgery as well as misappropriated public money for

                   his own benefit.

                                 4. The petitioner, his mother and his sister took a loan

                   of Rs. 33 lakhs from the Central Bank of India after mortgaging

                   the land and they have not repaid the loan amount and have sold
           Patna High Court CR. MISC. No.91805 of 2025(3) dt.24-03-2026
                                                       2/2




                     the mortgaged property.

                                  5. Learned counsel for the petitioner has tired to make

                     out a case that the land was sold to repay the Bank but the

                     cheque issued by the purchaser could not be encashed.

                                  6. Learned counsel for the Bank has submitted that the

                     petitioner has cheated the Bank and his intention, right from the

                     very beginning, was not to pay the loan after mortgaging the

                     property and he has even sold the mortgaged property. It has

                     further been submitted that the petitioner has got bail on the

                     submission that he will pay the entire amount within two years.

                                  7. Considering the conduct of the petitioner and the

                     huge public amount cheated from the Bank, I am not inclined to

                     grant bail to the petitioner.

                                  8. Accordingly, the application stands dismissed.




                                                                          (Sandeep Kumar, J)

P. Kumar

U     T


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