TaxTMI 
TaxTMI 
2020 (5) TMI 540
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....in Arrest Order dated 19.3.2020 issued by respondent no. 2 in furtherance of Order No. 03/117/2018-CL-II (NR) dated 21.02.2018 and Order No. 7/117/2108/CL-II dated 22.08.2019 under sections 447 and 448 of the Companies Act, 2013 or else the applicants shall suffer irreparable loss and injury which could not be compensated, as this matter rquired urgent hearing by this Hon'ble Court" 2. The present matter has been nominated to this Bench by Hon'ble The Chief Justice vide order dated 30.4.2020 and the same was heard through video conferencing and judgment/order was reserved by this Court on 1.5.2020. 3. Heard Sri Anurag Khanna, learned Senior Advocate assisted by Ms. Gunjan Jadwani, learned counsel for the applicants and Sri Gyan Prakash, learned Assistant Solicitor General of India for the respondents. 4. Pleadings between the parties have been exchanged through e-mail which are on record. 5. The brief facts of the case are that the applicants have been arrested in pursuance of the arrest order dated 19.3.2020 by the Arresting Officer, who is Assistant Director of Ministry of Corporate Affairs for the offence under sections 447 and 448 of the Companies Act, 2013 from Del....
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....iminished lung capacity and he is also required to take insulin injection as well as other medicine in order to maintain his health. It has been vehemently argued by learned counsel for the applicants that due to Covid-19, the life of the applicants is under great threat and particularly when they are also suffering from the disease of diabetes and asthma and there are increased risk of severe suffering from Corona Virus and they should be particularly stringent in following social distancing measures including significantly limiting face to face interaction. He submitted that the applicants are presently confined in District Jail, Kanpur Nagar which is over crowded and due to large number of persons in the said jail, the inmates are highly suspected to come into contact of Covid-19 (Novel Corona Virus). He submitted that the Apex Court taking suo motu cognizance of the threat to prisoners of various prisons in India, into the light of Corona Virus, on 16.3.2020 passed an order in Suo Motu Writ Petition (Civil) No. 1 of 2020 and thereafter passed an order in the said petition on 23.3.2020 for releasing the inmates of jail directing the respective States/Union Territories to constit....
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....ocuments to the respondent no. 2. There would not be any fruitful purpose to detain them in jail as till date no complaint has been filed by respondent no. 2 against them for offences under sections 447, 448 the Companies Act, 2013. They have no flight risk. They are ready to abide by the conditions which may be imposed by this Court. 10. Per contra, Sri Gyan Prakash, learned Assistant Solicitor General of India appearing for the respondents has submitted that the applicants were arrested on 19.3.2020 and they being the Directors/Controllers, used the corporate identities of the respective Companies of Rotomac Group, i.e., Rotomac Global Pvt. Ltd., Rotomac Exports Pvt. Ltd., Crown Alba Writing Instruments Pvt. Ltd, Kothari Foods & Fragrances Pvt. Limited, Mohan Steels Ltd. and Frost International Ltd. to deceive the Public Financial Institutions/Banks in obtaining credit facilities in the form of Letter of Credits and otherwise against which they defaulted to the tune of Rs. 4,000/- crores approximately in the case of RGPL and Rs. 3500/- crores approximately in the case of FIL which amounts continue as outstanding liabilities in the respective Companies. The applicant no. 1 is the....
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....ce the applicants cannot claim any relief in pursuance of the order of the Apex Court passed in Suo Motu writ petition. Therefore, their case is distinguishable from category/class of those prisoners. He next pointed that the applicants have made an application before the Additional Session Judge/Special Judge, Court no. 9 Kanpur Nagar which is the designated Court under section 436 of the Companies Act, 2013 that they may be permitted to have home cooked food, clothes, bedding and medicine etc. which was not opposed by the respondent no. 2 S.F.I.O. and in pursuance thereof they are being given the said facilities. He further submitted that the applicants are also being given their regular medicines for their ailment in jail. So far as the case which have been relied upon by the learned counsel for the applicants with respect to release on interim bail by the Delhi High Court with respect to accused involved in serious offences are concerned, it was a short period for operating Bank account and taking care of mentally retarded child of the said accused. He submitted that looking into the gravity and nature of offence committed by the applicants where they have deceived the Public F....
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....as withdrawn." 13. From a perusal of the aforesaid order passed by the Apex Court, it is apparent that the applicants were given liberty to approach this Court by filing bail application and the applicants in pursuance of the said order, had filed the present application under section 439 Cr.P.C. for interim bail taking into account serious threat to their lives because of the severe illness, from Corona Virus. Thus it is clear that no regular bail application has been filed by the applicants nor the same is pending before this Court or before the Special Judge, (Companies Act, 2013) at Kanpur Nagar. The applicants without moving regular bail application before this Court in the present case, have come up with a prayer only for grant of interim bail due to Covid-19 (Corona Virus) which speaks of lot of their conduct and the contention of counsel for the respondent appears to be justified to a great extent that the applicants want to seek relief indirectly which they cannot seek directly being a difficult task, realizing the nature and gravity of the offence as nothing had stopped them to file a regular bail applications before this Court on merits which this Court is also hearing ....
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....ued 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 Committee further resolved that following category of under trial prisoners (except prisoners who are Foreign Nationals) may be released on Interim Bail. a) Under trial prisoners facing criminal cases in which maximum sentence is 07 years and presently confined in jails may be released on interim bail for 08 weeks by the Sessions Court, Additional Sessions Court or the Chief Judicial Magistrate including other Judicial ....
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.... have substance. Moreover, so far as the risk of applicants being infected due to Corona Virus because of their severe 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 applicants had moved an application before the Special Judge (Companies Act) Kanpur Nagar for providing them home cooked food, clothes, bedding and medicines etc. was not opposed by the S.F.I.O. on account of which the same are being provided to them and the said fact has not been denied by learned counsel for the applicants but he has submitted that the said facilities is not adequate for the applicants to run the risk of their lives as the present interim bail application has been filed only on the ground of risk to life of the applicants because of their illness and coming in contact with Covid-19 (Corona Virus) infected persons. The main thrust of the argument of learned counsel for the applicants was only on the said issue though he tried to argue on the merits of the case in short stating that the Central Government has ordered for investigation by Serious Fraud Investi....
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....applicants have been arrested for the commission of offence of fraud with Public Sector Banks and Financial Institutions involving total amount of Rs. 7500/- crores approximately (Rs. 4000/- crores approximately in RGPL and Rs. 3500/- crores in F.I.L.) and the Ministry of Corporate Affairs vide order dated 21.2.2018 ordered investigation into the affairs of 11 Companies of Rotomac Group and Frost International Ltd. and during investigation, it has been revealed that the approval was taken from Ministry of Corporate Affairs to investigate the affairs of another Company, i.e., F.I.L. and Ministry of Corporate Affairs vide order dated 22.8.2019 granted the said approval. 17. Thus, taking into account the nature and gravity of the offence which shakes the conscience of the society and public at large, the investigation being still pending and there are strong apprehensions that there would be chances of tampering of evidence by the applicants, the prayer for grant of interim bail is hereby refused. 18. Accordingly, the present application for grant of interim bail to the applicants, namely, Sujay Desai and Uday J. Desai in Arrest Order dated 19.3.2020 issued by respondent no. 2 in fu....