Crl. Misc. No.M-14060 of 2011 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. Date of Decision: September 16, 2011 1. Crl. Misc. No. M-14060 of 2011 Surjit Singh …..Petitioner Vs. State of Punjab …..Respondent 2. Crl. Misc. No. M-18412 of 2011 Harjinder Singh …..Petitioner Vs. State of Punjab …..Respondent CORAM: HON’BLE MR. JUSTICE M.M.S. BEDI. -.- Present:- Mr.K.S. Nalwa, Advocate for the petitioner in Crl. Misc. No. M-14060 of 2011. Mr.T.S. Sangha, Sr. Advocate with Mr.H.S. Sangh, Advocate for the petitioner in Crl. Misc. No. M-18412 of 2011. Mr.K.S. Sidhu, DAG, Punjab. -.- Crl. Misc. No.M-14060 of 2011 [2] M.M.S. BEDI, J. (ORAL) This order will dispose of two petitions hearing Crl. Misc. No. M-14060 and M-18412 of 2011, for grant of pre-arrest bail in a case registered at the instance of District Controller, Food and Supplies Department, Sri Muktsar Sahib, alleging that M/s Sidhu Rice Mill, Gidderbaha and M/s Sidhu Agro Industries, Gidderbaha were allotted paddy and one grain agency for milling during the year 2009-10 and 2010-11 respectively under Levy Control Procurement Order, 1983. The millers have misappropriated the same by doing unauthorized conversion by preparing the rice after milling without obtaining release order. On March 24, 2011, Assistant Food and Supply Officer, Gidderbaha, alongwith staff and police party conducted physical inspection of the shellers of M/s Sidhu Rice Mills and M/s Sidhu Agro Industries situated in one building having common boundary wall with two different gates. Malkiat Singh and Surjit Singh are the owners and partners of M/s Sidhu Rice Mills, Gidderbaha whereas Harjinder Singh and Sukhdev Singh are owners and partners of M/s Sidhu Agro Industries, Gidderbaha. The allegations against the firms is that the partners of the said firms had misappropriated 10618.30 quintals in the stock of M/s Sidhu Agro Industries and on account of breach of agreement between the said firms with the Government agency they have committed misappropriation. Counsel for Harjinder Singh, partner of M/s Sidhu Agro Industries has submitted that the business of the firm of M/s Sidhu Agro Industries is run by Sukhdev Singh and that Sukhdev Singh has been Crl. Misc. No.M-14060 of 2011 [3] arrested and that the petitioner had given Special Power of Attorney to Sukhdev Singh to run the business of shelling. Reliance has been placed on clause 22 of the agreement which provides that the contract shall come into force w.e.f. the date of execution of the agreement and shall remain in force upto September 30, 2011 or clearance of dues whichever is later. It appears that the period can be extended with the discretion of District Controller/ Managing Director for further period. A copy of the letter of FCI dated April 30, 2011 has been attached indicating that the milling period has been extended. Besides this, there appears to be an arbitration clause in the agreement which entitles the complainant Department to seek arbitration and raise its claim. State counsel has contended that a similar petition filed by Malkiat Singh has been dismissed by the High Court. I have taken into consideration the part attributed to Harjinder Singh. He is son of Malkiat Singh and it is not alleged that he is the person who is managing the affairs of the partnership concern. The affairs of the firm seem to be managed by Malkiat Singh. Petitioner has already joined investigation. Financial loss, if any, can be recovered by the complainant in accordance with law. Rajinder Singh petitioner is partner with Sukhdev Singh in M/s Sidhu Agro Industries, Gidderbaha and Surjit Singh is partner with Malkiat Singh in M/s Sidhu Rice Mills, Gidderbaha. The partners of both the firms are apparently close relations and premises of both the firms are also situated in the same premises. Whether the paddy stocks have been Crl. Misc. No.M-14060 of 2011 [4] misappropriated and whether the partners of the above said firms are liable on account of their civil obligations accruing out of the agreement of milling or they are criminally liable, would be debatable during trial as the agreement of milling contains an arbitration clause entitling the complainant to recover any loss caused to the complainant on account of the violation of the terms of the agreement in the light of the ratio of judgment in Kailash Verma Vs. Punjab State Civil Supplies Corporation and another, 2005 (1) RCR (Crl.) 727. So far as Surjit Singh is concerned, he claims that he has been falsely implicated on account of political vindictiveness as the elder brother of petitioner Surjit Singh is closely associated with former Finance Minister Sh.Manpreet Singh Badal and brother of petitioner Charanjit Singh was posted as P.A. to the said Minister from the years 1995 to 1999. On account of political differences having arisen between the Chief Minister and Sh.Manpreet Singh Badal the petitioners have been involved in the case, being closely associated to former Finance Minister Sh.Manpreet Singh Badal. It has been found during investigation that 1566.70 quintals rice was found excess in stock of M/s Sidhu Rice Mills during physical verification whereas 10618.30 qtl. of M/s Sidhu Agro Industries was found to be deficient. The petitioners have already joined investigation. The stocks have already been examined and formally taken into possession by the investigating agency. Accordingly, both the petitions are allowed and it is ordered that in case of arrest of the petitioners they will be released on bail to the Crl. Misc. No.M-14060 of 2011 [5] satisfaction of the arresting officer subject to the condition that they will join investigation as and when required by the police and that they will not tamper with the evidence or hamper the investigation, in any manner. The petitioners will not leave India without the prior permission of the trial Court. September 16, 2011 (M.M.S.BEDI) sanjay JUDGE