Case Facts:
Patna High Court Cr.Misc. No.46515 of 2009 (8) dt.05-09-2012 1 / 27 1 IN THE HIGH COURT OF JUDICATURE AT PATNA Criminal Miscellaneous No.46515 of 2009 ====================================================== Mumtaz Alam S/o Late Md. Wali, Deputy Manager, BICICO, Indira Bhawan, 4th Floor, R. C. Path, P.S.- Srikrishna Puri, Dist.- Patna, R/O Flat No.- 53, Vasundhara Apartment, Road No., New Patliputra Colony, P.S.- Patliputra, Patna- 800013 .... .... Petitioner/s Versus 1. The State Of Bihar 2. Pankaj Jain S/O Kailash Chand Jain, Director M/S Vedant Granite Pvt. Ltd., a Company incorporated under Companies Act, 1956 Having its Administrative Office at Kankarbagh Road, P.S.- Patrakar Nagar, Dist.- Patna .... .... Opposite Party/s ====================================================== Appearance : For the Petitioner/s : Mr. Amit Shrivastava, Advocate Mr. Girish Pandey, Advocate For the Opposite Party/s : Mr. S. D. Sanjay, Advocate Mr. Gopal Prasad Gupta, Advocate ====================================================== CORAM: HONOURABLE JUSTICE SMT. ANJANA PRAKASH CAV ORDER 8/ 5-09-2012 The petitioner seeks quashing of the entire proceeding including the order dated 15.01.2007 passed in Complaint Case No.1975-C of 2006 by Ms. Saroj Kumari, Judicial Magistrate, 1st class, Patna, by which she has taken cognizance under [STATUTE] . 2. After the Counsels for respective parties were heard at length, the Court felt the necessity of perusing the documents that had been mentioned in the Petitioner‟s application Patna High Court Cr.Misc. No.46515 of 2009 (8) dt.05-09-2012 2 / 27 2 and required him to file the same. Hence by way of a Supplementary Affidavit, the communication between the BICICO and the Petitioner were brought on record. None of them are disputed by the Opposite Party No.2. 3. Before I advert to the contents of the Complaint, I wish to record the documented details of the transaction that took place between the parties. On 14.05.2005, the Opposite Party No.2 in response to a tender for purchase of assets of M/s Barway Granite & Stone Co. Pvt. Ltd., Pandra, Ratu Road, Ranchi, wrote to the Managing Director, Bihar State Credit & Investment Corporation Limited, the following: “I have seen your advertisement for sale of assets of different sick-closed units of Bihar & Jharkhand area. In this connection, I had a discussion with your Mr. M. Alam and I express my interest to purchase the assets of M/s Barway Granite & Stone Co. Pvt. Ltd., Ranchi, name of which has been changed to M/s Ranchi Granite & Stone Co. Pvt. Ltd. I hereby offer to pay Rs.51,00,000/- (Fifty one Lakhs) only for the entire assets of the company including free hold land, building, plant & machinery etc.” You will hand over the possession of all assets on payment of first 25% so that we can start re- organizing the unit for fresh commencement. You will extend all co-operation and protection for retaining peaceful possession of the assets. Mutation of land ownership in my proposed company‟s name shall be your responsibility.” Patna High Court Cr.Misc. No.46515 of 2009 (8) dt.05-09-2012 3 / 27 3 The BICICO by letter dated 14.06.05 informed the Complainant that it had tentatively accepted his offer and advised him for payment of 100% amount by 30.06.2005, failing which his offer would stand rejected and the earnest money deposited by him would be forfeited without further reference and the Corporation would be at liberty to re-advertise/ renegotiate with other tenderers and or do as it deems fit and proper. On 28.06.2005, the Opposite Party No.2 informed the In charge Legal Cum OTS, Bihar State Credit & Investment Corporation Ltd., acknowledging the letter dated 14.06.2005 and gave his acceptance. However, on 04.07.2005, Sri O. P. Singh, I/c OTS cum Legal of BICICO informed him that he had failed to deposit the money as intimated to him and also that he had received the copy of MOU personally. On 21.07.2005,once again Sri O P Singh, A.M. (OTS), BICICO, informed him that Board of Directors of BICICO have approved the sale on the following condition: “As the purchaser has deposited only 50% of the consideration amount, the assets can be handed over on furnishing bank guarantee for the balance 50% of the consideration money.” “This is to inform you that since you have already paid Rs.27.00lacs out of the consideration money of Rs.53.12lacs as such you are advised to give Bank Guarantee for the balance amount so that further steps could be taken in this regard. Kindly expedite giving of the Bank Guarantee at the earliest.” Patna High Court Cr.Misc. No.46515 of 2009 (8) dt.05-09-2012 4 / 27 4 In the next communication dated 31.10.2005 the Opposite Party No.2 raised his apprehensions in the following manner: “We are extremely shocked to know from the Sub-Registrar Office at Ranchi that there was no registration of sale deed of 90 decimals freehold land at Pandara, Ratu Road, Ranchi, either in favour of Mr. Ananat Kumar, Managing Director of the above Company or in favour of the Company. Further, it was very surprising to know from Circle Officer, Ranchi, that there was no mutation of the aforesaid free hold land of 90 decimals at Pandara, Ratu Road, Ranchi, either in favor of the Mr. Anant Kumar or the above Company. Further in the context the aforesaid land is found to belong to a tribal which can not be sold under the Tenancy Act without the permission of the D.C., Ranchi. It has given strong doubt as to how the whole matter pertaining to land escaped the notice of M/s BICICO while considering sanction of term loan and its disbursement to the above company. In the situation faced, it is to request that M/s BICICO may be eager to look into matter immediately before deciding handing over final possession of the assets of the aforesaid company to us. Moreover, we are also very reluctant in such state of affairs to proceed further in the matter and we may be compelled to request for refunding the entire amount of Rs.27

Applicable IPC Section: 406

Statute Text:
Section 406 of the Indian Penal Code. Criminal breach of trust. Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.