TMI Blog2020 (5) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... fence in which the applicant has been confined in jail is punishable with a maximum sentence upto 10 years, appears to have substance - Moreover, so far as the risk of applicant being infected due to Corona Virus because of his illness in the lack of following strict norms of social distancing measures including face to face interaction is concerned, it has been pointed by learned Assistant Solicitor General that the applicant is not such a sick person, who is not able to perform normal pursuits of his life as he is only suffering from urinary infection and stated to be having low blood sugar for which there is adequate facility of his treatment in the jail hospital and the applicant had himself admitted that he was admitted in the jail hospital on 27.3.2020. Taking into account the nature and gravity of the offence which shakes the conscience of the society and public at large, investigation being still pending and there are strong apprehension that there would be chances of tampering of evidence by the applicant, the prayer of the applicant for grant of immediate release till such time that pandemic COVID-19 (Corona Virus) is curtailed, is hereby refused - the prayer made in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Companies Act, 2013 (hereinafter referred as 'the Companies Act) directing the Special Fraud Investigation Office (hereinafter referred to as 'SFIO') to investigate into the affairs of Rotomac Global Pvt. Ltd. (hereinafter referred to as 'the RGPL') and 10 others and Frost International Limited (hereinafter referred to as 'FIL') in the public interest . The applicant was arrest by SFIO at New Delhi vide Arrest Order dated 19.3.2020. Thereafter, the SFIO obtained his transit remand from the court at Delhi and brought the applicant to Kanpur Nagar on 21.3.2020. Thereafter, the Additional Session Judge/Special Judge, Court No. 9, Kanpur Nagar which is the designated Court under section 436 of the Companies Act, 2013 remanded the applicant to judicial custody on 21.3.2020. A copy of the arrest order dated 19.3.2020 is annexed with the present bail application. 6. The applicant before approaching this Court for the prayers aforesaid has approached the Apex Court vide Writ Petition (Criminal) No. 125 of 2020 for grant of bail in view of the threat posed to his life in the light of Covid-19. 7. The Apex Court on 1.4.2020 was pleased to dispose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Court vide order dated 22.11.2019 refused to interfere with the judgment of the High Court and dismissed the S.L.P., copy of which is also annexed as annexure-5 to the bail application. He submitted that as the applicant has already been granted bail in case crime no. RC/BD1/2018/E/0001 for the offence under sections 120-B I.P.C. read with section 420, 467, 468, 471 I.P.C. and section 13 read with section 13 (1) (d) of the Prevention of Corruption Act, 1988, police station CBI/BS FC/New Delhi, District Kanpur/Delhi, he is entitled to be released on bail in this case also for the offence under section 447 and 448 of the Companies Act which is punishable upto 10 years as in the case, registered by the C.B.I., in which he has been granted bail, the offences are punishable upto seven years and life imprisonment. He further submitted that the case of the applicant may be considered in the light of the judgment of the Apex Court passed in Suo Motu Writ Petition (Civil) No. 1 of 2020 wherein the Apex Court has directed the States/Union Territories to constitute a High Powered Committee to determine which class of prisoners can be released on parole or interim bail for such period as m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as arrested along with two other persons for commission of offence of fraud with Public Sector Banks involving total amount of ₹ 7500/- crores approximately for the offence under sections 447, 448 of the Companies Act, 2013 which provides for maximum punishment upto ten years. The Ministry of Corporate Affairs in exercise of its power under section 212 (1) (c) of the Companies Act, 2013 vide order dated 21.2.2018 has ordered investigation in the affairs of 11 Companies of Rotomac Group. On the basis of material collected during investigation an approval was sought from the Ministry of Corporate Affairs to investigate into the affairs of another Company, i.e., Frost International Ltd. and the Ministry of Corporate Affairs vide order dated 22.8.2019 granted the said approval. The provisions contained under sections 212 (3) of the Companies Act, 2013, empowers certain category of officials of SFIO to arrest any person on the basis of material collected during investigation and after recording reasons to believe that any person is guilty of offence punishable under section 447 of the Companies Act, 2013. In exercise of the aforesaid powers granted under section 212 (3) of the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice established under Section 211 of the Companies Act, 2013 and in terms of Section 212 of the Companies Act, 2013 it may conduct investigation into the affairs of the Company under the order of Ministry of Corporate Affairs. Moreover, the investigation in question has been ordered by the Central Government in exercise of its power under section 212 (1) (c) of the Companies Act, 2013 in the instant case and not on the basis of registration of F.I.R. by C.B.I. He has drawn the attention of the Court towards paras-25 to 28 of the written submissions regarding denial made by respondent SFIO with respect to the averments made in para-14 of the affidavit filed in support of the bail application categorically. So far as the argument of learned counsel for the applicant with respect to the bar contained under section 212 (6) (ii) of the Companies Act will not apply while dealing with the application for bail on medical ground is concerned, it appears to be also not correct in view of the fact that the applicant is not such a sick person, who is not able to perform normal pursuits of his life as he is only suffering from urinary infection and stated to be having low blood sugar. He has dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Writ Petitions pertain to grant of bail, we are of the opinion that the petitioners should withdraw these writ petitions to approach the High Court by filing bail applications. The High Court of Allahabad is requested to take up the bail applications at the earliest. We make it clear that we have ot heard the matters on merit. The writ petitions are, accordingly, disposed of as withdrawn. 12. From a perusal of the aforesaid order passed by the Apex Court, it is apparent that the applicant was given liberty to approach this Court by filing bail application and the applicant in pursuance of the said order, had filed the present application under section 439 Cr.P.C. for immediate release on bail taking into account serious threat to his life because of the illness, from Corona Virus. Thus, it is clear that he has not moved a regular bail application under section 439 Cr.P.C. before this Court in the present case and has come with a limited prayer to immediately be released till such time that the pandemic COVID-19 (Corona Virus) is curtailed and further reserved his right to move another application (if need so arise, at a later stage) as has been averred by him in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be release as aforesaid, depending upon gravity and the nature of offence and other relevant factor thereto. In pursuance of the same, High Powered Committee had been constituted in the State of U.P. as has been informed by the Secretary U.P. Legal Services Authorities Lucknow vide order dated 27th March, 2020 and as per the resolution of the High Powered Committee in its meeting dated 27.3.2020 had issued certain directions regarding convicted and under trial prisoners and has resolved as follows:- The Committee has resolved that the following category of convicted prisoners (excepts who are Foreign Nationals) to be released on parole on furnishing personal bond with the undertaking written on the personal bond itself that he/she shall surrender before the prison authority after expiry of the parole period.:- a) Convicts already on parole would get extended special parole of 08 additional weeks. b) Convicts who have already availed 01 parole peacefully and surrendered on time will be granted afresh one-time special parole for 08 weeks. c) Convicts who are not facing a sentence of more than 7 years shall be released on special parole for 08 weeks. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing on behalf of the respondent, who vehemently argued that the applicant is not entitled for bail/interim bail as per the order passed by the Apex Court Suo Motu in the aforesaid writ petition by which a High Powered Committee has been constituted as the case of the applicant is distinguishable from the under trial prisoners as the offence in which the applicant has been confined in jail is punishable with a maximum sentence upto 10 years, appears to have substance. Moreover, so far as the risk of applicant being infected due to Corona Virus because of his illness in the lack of following strict norms of social distancing measures including face to face interaction is concerned, it has been pointed by learned Assistant Solicitor General that the applicant is not such a sick person, who is not able to perform normal pursuits of his life as he is only suffering from urinary infection and stated to be having low blood sugar for which there is adequate facility of his treatment in the jail hospital and the applicant had himself admitted that he was admitted in the jail hospital on 27.3.2020. Moreover, the applicant had moved an application before the Special Judge (Compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrest on 19.3.2020 that the applicant was found to be functioning as the Director of RGPL on 1.12.2004 and as a whole time Director on 16.8.2014 and under his direction he used Mercantile Trade for rotation of funds continuously manipulating and falsified books of account and financial statements of the Company to fraudulently inducing the banks and public financial institutions for obtaining credit facilities. As a result of fraudulent activities the Company has defaulted against outstanding liabilities of ₹ 2886/- crores approximately to banks and public financial institutions thereby causing wrongful loss to them and his act and omission are punishable under section 447 and 448 of the Companies Act, 2013. He stated that the applicant has been cooperating in the investigation and a day prior to his arrest by respondent, the applicant went for the purpose of interrogation on 19.3.2020 at Delhi and no complaint has been filed till date under the Companies Act, 2013. Learned Assistant Solicitor General appearing on behalf of the respondent through his objection filed has drawn the attention of the Court that the applicant has been arrested for the commission of offence o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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