PRANJAL SHARADCHANDRA PHADNISversusTHE STATE OF MAHARSHTRA AND ANR

                                                     901 - BA - 740 - 2026.doc


           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                   CIRCUIT BENCH AT KOLHAPUR
                 CRIMINAL APPELLATE JURISDICTION

             CRIMINAL BAIL APPLICATION NO. 740 OF 2026

Pranjal Sharadchandra Phadnis                 … Applicant
             Versus.
The State of Maharashtra & Anr.               … Respondents

                              -------
Mr. Shrikrishna Ganbavale with Mr. Kunal Nalwade and Mr.
Shantanu Patil for the Applicant.
Ms. S. N. Deshmukh, APP for the State.
Mr. Gautam Powar with Mr. Vinay B. Kadam for Respondent
No.3.
D. S. Walanekar, API, and V. D. Kale, EOW, Kolhapur are
present.

                              -------
                             CORAM       : ASHWIN D. BHOBE, J.

                             DATED       : SEPTEMBER 16, 2026
P.C.:


1.      Heard, Mr. Shrikrishna Ganbavale, learned Advocate for the

Applicant, Ms. S. N. Deshmukh, learned APP for the State and Mr.

Gautam Powar, learned Advocate for Respondent No. 3.


2.      By this Application filed under Section 483 of BNSS 2023, the

Applicant seeks Regular Bail in connection with Crime No. 314 of 2026,

registered with Hatkanangale Police Station for the offences punishable

under Sections 420, 406, 409, 417, 506 read with Section 34 of the

Indian Penal Code, 1860.




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3.    Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant,

submits that there are six (6) accused in Crime No. 314 of 2026, the

Applicant being Accused No. 2.


4.    The case of the prosecution is Dr. Santosh Chougule (son of the

informant) was running Hrudaya Multi-Speciality Hospital at Herle. For

the hospital's expansion and procurement of sophisticated medical

equipment, financial assistance was required. Accused No. 6 (Sushant

Phadnis) represented that he had the expertise and influence to secure

institutional finance and assured that concerns controlled by the

accused would undertake the construction, renovation and installation

of machinery. Acting on this representation, Kolhapur District Central

Co-operative Bank sanctioned a loan of Rs. 7.50 Crores. After disbursing

Rs. 5 Crores, the amount was transferred to 'Swayam Sankalp Siddhi'

and Rs. 2.5 Crores to Pavostar Synergy Private Limited. According to the

prosecution, instead of utilising the said amount for the hospital project,

the funds were diverted through various accounts for the benefit of the

accused in Crime No. 314 of 2026. Neither the agreed work was

completed nor was the amount returned, resulting in the filing of the

complaint.


5.    The Applicant was arrested on 9th       July 2026. The Additional

Sessions Judge, Ichalkaranji (“Trial Court”), rejected the Applicant’s Bail

Application No. 193 of 2026 on 31st July 2026.



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6.    Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant,

submits that the Applicant is suffering from various ailments and

underwent two angioplasties between 21st August 2026 and 7th

September 2026. He further submits that the Applicant is recuperating.

He submits that the subject matter of Crime No. 314 of 2026 is a private

commercial dispute between the Applicant and the Respondent No. 3.

He submits that the Applicant has returned Rs. 3 Crores 25 Lakhs to

Respondent No. 3 as full and final settlement of the dispute. He submits

that in view of the amicable resolution of the dispute, the Applicant has

filed a Criminal Writ Petition bearing Stamp No. 3531 of 2026 before

this Court, seeking, by consent, quashing of the FIR bearing Crime No.

314 of 2026. He submits that the said Petition will be listed before this

Court very shortly. He, therefore submits that the Applicant be enlarged

on bail.


7.    Mr. Gautam Powar, learned Advocate for Respondent No. 3-

Complainant, submits that the dispute between the Applicant and

Respondent No. 3 pertains to a commercial transaction, i.e. the amounts

referred to in the FIR. He submits that the Applicant has paid Rs. 3

Crores 25 Lakhs to Respondent No. 3. He submits that the said amount

is towards the full and final settlement of the amount due and payable

by the Applicant to Respondent No. 3. He admits that the Applicant has

filed a Writ Petition seeking the quashing of the FIR bearing Crime No.




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314 of 2026 and that Respondent No. 3 has given his no-objection to

the quashing of the impugned FIR by consent.


8.    Ms. S. N. Deshmukh, learned APP for the State, submits that the

Applicant and Respondent No. 3 now claim that the dispute in Crime

No. 314 of 2026 is a private commercial dispute between the parties

and that they have settled it by paying/receiving the amounts. She

submits that the investigating agency has almost completed the

investigation.


9.    Ms. S. N. Deshmukh, learned APP for the State, submits that the

Applicant, as well as Respondent No. 3, have used the police machinery

at their whim and fancy, as a recovery proceeding and therefore

Applicant and the Respondent No. 3 should be saddled with costs.


10.   Perused the record.


11.   Prima facie, I find substance in the submissions made by Mr.

Shrikrishna Ganbavale, learned Advocate for the Applicant that the

subject matter of the crime appears to be a pure commercial dispute

relating to payment of an amount – dispute pertaining to providing of

services/supply of material. It appears that the Applicant's non-

performance of an obligation led Respondent No. 3 to file the criminal

proceedings.


12.   Vide order dated 21st August 2026 passed by this Court in Interim



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Application No. 461 of 2026, the Applicant was granted interim bail on

medical grounds to undergo medical surgery/treatment. As stated by

Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant, the

Applicant has undergone two angioplasties during the period he was

granted interim bail (21st August 2026 up to 7th September 2026). The

Applicant has complied with the order dated 21 st August 2026 and no

extension was sought. Mr. Shrikrishna Ganbavale, learned Advocate for

the Applicant, submits that the Applicant is having serious health

ailments and requires medical attention in speciality hospitals.


13.   Be that as it may, considering the submissions made by Mr.

Shrikrishna Ganbavale, learned Advocate for the Applicant and Mr.

Gautam S. Powar, learned Advocate for Respondent No. 3, that the

parties have amicably resolved the dispute and the amount which was

the subject matter of the crime has been paid, the parties having

approached this Court by filing an independent Writ Petition for

quashing of the impugned FIR by consent, continuation of the Applicant

in jail, who is otherwise ailing as submitted by Mr. Shrikrishna

Ganbavale, is not warranted.


14.   Ms. S. N. Deshmukh, learned APP for the State, is justified in her

submission that the police machinery was being used by the Respondent

No. 3 and the Applicant as a recovery proceeding to settle a commercial

dispute. Faced with the submissions made by Ms. S. N. Deshmukh,



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learned APP for the State, Mr. Shrikrishna Ganbavale, learned Advocate

for the Applicant and Mr. Gautam S. Powar, learned Advocate for

Respondent No. 3, on instructions from the respective parties, have

voluntarily offered to pay an amount of Rs. 1 Lakh each as costs.


15.   Mr. Gautam S. Powar, learned Advocate for Respondent No. 3,

states that Respondent No. 3 shall deposit Rs. 1 Lakh with the Ad-hoc

Committee of the Bombay High Court, Kolhapur Bench Bar Association.

Mr Shrikrishna Ganbavale, learned Advocate for the Applicant, states

that the Applicant will pay Rs. 1 Lakh to the Public Prosecutor's Office,

Kolhapur, for infrastructure purposes.


16.   In view of the above, Bail Application No. 740 of 2026 is allowed

on the following terms:


(a)   The Applicant shall be released on bail in Crime No. 314 of 2026,

registered with Hatkanangale Police Station, upon furnishing a PR bond

of Rs. 50,000/- (Rupees Fifty Thousand only) with one or two sureties

in the like amount, to the satisfaction of the Additional Sessions Judge,

Ichalkaranji.


(b)   The Applicant shall not, directly or indirectly, make any

inducement, threat or promise to any person acquainted with the facts

of the case to dissuade that person from disclosing the facts to the Court

or any police officer. Applicant shall not tamper with evidence.



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                       (c)   The Applicant shall provide the Investigating Officer at

                       Hatkanangale Police Station with his residential address and proof

                       thereof, his contact number and must inform the Investigating Officer of

                       any changes to this information from time to time.


                       (d)   The Applicant shall report to the Investigating Officer at

                       Hatkanangale Police Station as and when required.


                       17.   Bail Application No.740 of 2026 is disposed of.




                                                                 (ASHWIN D. BHOBE, J.)
          Digitally
          signed by
          VAIBHAV
VAIBHAV   RAMESH
RAMESH    JADHAV
JADHAV    Date:
          2026.09.16
          18:24:23
          +0530




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