High Court
Legal Reasoning
1 cri wp 381.19IN THE HIGH COURT OF JUDICATURE AT BOMBAYBENCH AT AURANGABADCRIMINAL WRIT PETITION NO. 381 OF 2019Kishor Devidas Bhosale and others.. PetitionersVersusThe State of Maharashtra and others.. RespondentsShri Jay S. Chavan Advocate h/f Shri Dhananjay B. Thoke, Advocate for the Petitioners. Shri S. M. Ganachari, A.P.P. for the Respondent Nos. 1 to 3.CORAM :SHAILESH P. BRAHME, J. DATE :11TH MARCH, 2025.FINAL ORDER :.Though the notices for final disposal have been servedupon the respondent Nos. 4 to 7 and 9, none appears for them.2.Heard both sides. The petitioners are seeking direction totransfer several cases enlisted in Exhibit – A to a particularplace either at Latur or Dharashiv for trial.3.Petitioners are office bearers of multi state cooperativesociety under name and style as Atidya Arthik Niyojan MultiState Co-op. Credit Society (hereinafter referred as to the‘Society’ for the sake of convenience and brevity).4.The respondent Nos. 4 to 10 are the original
Legal Reasoning
2 cri wp 381.19informants/depositors, who have registered first informationreports U/Sec. 406, 409, 418 and 420 r/w Sec. 34 of the IndianPenal Code and U/Sec. 3 of the Maharashtra Protection ofInterest of Depositors (In Financial Etablishments) Act, 1999(hereinafter referred as to the ‘M.P.I.D. Act’ for the sake ofconvenience and brevity). Most of the petitioners are residents ofPune. They have to attend the proceedings at different places.Investigation is complete in the respective offences and chargesheets are filed. The matters are at the stage of either recordingof evidence or hearing.5.Learned counsel Mr. Jay Chavan holding for Mr.Dhananjay Thoke, learned counsel appearing for the petitionerssubmits that petitioners have to rush to different places. Hewould advert my attention to Exhibit – A showing the stage ofthe proceedings, places and the nature of the offences. He wouldsubmit that in view of Sec. 219 of the Code of Criminal Procedure(for short “Cr. P. C.”) as well as new Sec. 242 of the BhartiyaNagrik Surakshya Sanhita, 2023 (for short “B.N.S.S.”) , it wouldbe appropriate to club the proceedings either at Latur orDharashiv to avoid the hardship to the petitioners. He wouldsubmit that although offences under the special act i. e. M. P. I.D. Act are involved, that would not be a hurdle for clubbing theproceedings. He would rely on the judgment of the DivisionBench of this Court at principal seat at Bombay in the matter ofPramod Bhaichand Raisoni and others Vs. The State of Maharashtraand others reported in 2019(2) Bom. C. R. (Cri) 899. It is informed 3 cri wp 381.19that the proceedings at Sr. No. 6 of Exhibit – A are transferred tothe Court of larned Additional Sessions Judge, Kallamb, Dist.Osmanabad having registration number as Special Case No. 12of 2023.5.Learned Assistant Public Prosecutor submits that it is notpermissible to club seven proceedings. Sec. 219 of the Cr. P. C.contemplates clubbing of maximum three proceedings registeredwithin a span of twelve months. Whereas Section 242 of the B.N. S. S. contemplates clubbing of maximum five proceedings. Hewould submit that as the proceedings are under special statute,it is impermissible to club the proceedings. He would furthersubmit that it would be inconvenient for the differentinvestigating officers and the witnesses to attend theproceedings. It is submitted that in the cited case, theinvestigating agency which was ultimately appointed was thesame i. e. Special Investigating Team (SIT).6.I have considered rival submissions of the parties. There isno dispute for the details provided by the petitioners at Exhibit –A. It is informed by the learned counsel for the petitioners thatin the first offence bearing Cr. No. 37/2016 registered at PoliceStation Ahmedpur, Dist. Latur, there are ten accused and twentywitnesses. In the second offence bearing Cr. No. 26/2016 ofPolice Station Murud, Dist. Latur, there are three accused andthirty four witnesses. In the third offence bearing Cr. No.34/2016 of Police Station Chakur, Dist. Latur there are six 4 cri wp 381.19accused and twenty one witnesses. In the fourth offence of PoliceStation Bembli, Tq. and Dist. Dharashiv, there are nine accusedand thirty three witnesses. In the fifth offence of Police StationDhoki, Dist. Dharashiv there are five accused and elevenwitnesses. In the sixth offence registered with Police StationKallamb, Dist. Dharashiv there are thirteen accused and twentyone witnesses. In the last offence information is not available.7.The wording used in Section 219 of the Cr. P. C. and Sec.242 of the B. N. S. S. shows that provisions are directory and notmandatory. The maximum limit prescribed as three offences orfive offences respectively can be dispensed with considering thefacts and circumstances of the case. In the present case, themembers of the Co-operative Society are facing prosecutionunder the special Act. The convenience of the accused cannot bethe sole criteria for clubbing the proceedings. The nature of theproceedings, number of accused, number of witnesses and theinvestigating officers are the relevant factors. Those areeconomic offences involving bulky record. It would be convenientto club all the proceedings to be tried at one place. Consideringthe number of witnesses and the number of accused involved inthe offences, it would be in the interest of justice to club theproceedings to be tried at Latur.8.The Division Bench at principal seat at Bombay dealt withseventy seven cases registered at different places in the State ofMaharashtra. Those were serious offences registered under the 5 cri wp 381.19M. P. I. D. Act and other provisions also. Despite that, thoseproceedings were clubbed together and directed to be tried atJalgaon by the Special Court. It is relevant to reproduce theobservations of the Division Bench made in paragraph Nos. 15and 16 of the judgment, which are as follows :“15.From perusal of the First Information Report whicharraigned the petitioners as accused, we have taken note ofthe fact that the allegationslevelled relate to a similartransaction of the investors depositing their amount in theMulti-State Cooperative Credit Society on a promisedreturn and failure to return the same amounts with theincentives as promised. All the office bearers of the Multi-State Co-operative Credit Society have been arraigned asaccused and barring the amount involved in each FIR, thenature of transaction is identical. The provisions of MPIDhave been invoked against all the accused persons and thecharge-sheets are filed in different Courts. Apart from this,the offences under Indian Penal Code have also beeninvoked and applied. Since there appears to be acommonality of action with which the accused are chargedwith, it would be in the interest of justice to assign all thematters one of which would also in the interest of theprosecution, prosecuting agency and would also ensure fairand speedy trial to the present petitioners who are arraignedas accused. Except raising a technical objection based onthe territorial jurisdiction of the Court, we do not find thatthe State is opposed to the clubbing of trials on any otherground. Trial of 77 cases pending before different MPIDCourts is a time consuming process and if the trials areclubbed together, the number of witnesses cited can also bereduced to the bare minimum as it is not the volume of theevidence that is brought on record is of relevance but it is 6 cri wp 381.19the relevant evidence which should form the basis of anytrial in determining the guilt of the accused. It is no doubttrue that while issuing a direction for clubbing all theoffences and the trials, the Court is duty bound to evaluatewhether such clubbing would cause prejudice to theaccused persons or it would facilitate the trial by taking intoconsideration the facts involved in the matter. We are of theclear view that trial of 77 Crs by one Court of MPID wouldrather facilitate the trial and since the interest of severaldepositors are involved, we are of the clear view that tryingall the offences at one place by the same Court wouldprovide a solace to the complainants and speedy disposal ofall the offences would assist in achieving the purposeunderlying the MPID Act. Further, it would also avert asituation resulting into different final outcomes of distincttrials tried by separate MPID Courts.16. The Maharashtra Protection of Interest of DepositorsAct is a special enactment to ameliorate the interest of thedepositors and the said Act is enacted to deal with suchfinancial establishments in the State who are grabbingmoney received as deposits from public mostly middleclass and poor strata of the society, on the promise ofunprecedented high attractive interest on maturity and suchfinancial establishments have defaulted and it has cost greatpublic resentment and uproar creating law and orderproblem in the State. The said legislation intends to cure themalady of thousands and thousands of depositors rampedinto a public disorder and the fraudulent default of theaccused in such type of offences form a unique class ofwhite collared and organized crime. The transactions of heaccused persons who are before us have exploited severaldepositors and the promise on which the deposits wereaccepted was never fulfilled. The procedure contemplated
Decision
7 cri wp 381.19under the Special enactment intends to prevent and protectthe precarious loss of the depositors and enable them torecover the amount as early as possible. No solution isavailable to the innocent unsecured depositors in absence ofthe procedure prescribed in the enactment. In ourconsidered opinion, it is also the duty of the State to assistthe innocent depositors and to protect their interest andeffectively take steps to recover the amount and return thesame to the persons who have lost their savings. The Statebeing the custodian of the welfare of the subjects cannot bea silentspectator and once a legislation has been brought in,to deal with this and protect the interest of the vulnerablesector, it is the duty of the State to render justice to suchdepositors and this would be in real sense amounting tosecuring of socio economic justice to its citizens, which is asolemn duty of every State.9.The above observations are applicable to our case also. Ipropose to adopt the same reasons and the course. I find itappropriate to club all these proceedings to be tried at Latur bycompetent Court i. e. learned District and Sessions Judge, Latur.In that view of the matter the petition succeeds.10.I, therefore, pass following order :O R D E R(i)The writ petition is allowed partly.(ii)The following proceedings shall stand transferred to thecompetent Court at Latur. Necessary steps be taken to transferthe proceedings and the record to the Court at Latur. 8 cri wp 381.19Sr.No.Cr. No. and dateof registrationName ofPolice StationOffences Name ofcomplainant01Cr. No. 37/2016Dt. 03.02.2016Ahmedpur,Dist. LaturSec. 406, 409 r/wSec. 34 of the I. P.C & Sec. 3 of theM. P. I. D. ActDr. BapusahebTukaram Upase R/oBelur, Tq. Ahmedpur02.Cr. No. 26/2016Dt. 06.02.2016Murud, Dist.LaturSec. 406, 418,420, 468 of the I.P. C & Sec. 3 ofthe M. P. I. D. ActAmar PundlikraoNade R/o Murud,Tq. & Dist. Latur.03.Cr. No. 34/2016Dt. 07.02.2016Chakur, Dist.LaturSec. 406, 420,409 r/w Sec. 34of the I. P. C &Sec. 3 of the M. P.I. D. ActRajkumar DevidasLonale, R/oWadgaon (Ekurga),Tq. Chakur, Dist.Latur04.Cr. No. 57/2016Dt. 22.03.2016Bembli, Tq. &Dist.OsmanabadSec. 406, 420,409 r/w Sec. 34of the I. P. C &Sec. 3 of the M. P.I. D. ActHanumant SureshKadam, R/o Lasona,Tq. & Dist.Osmanabad05.Cr. No. 13/2016Dt. 05.02.2016Dhoki, Tq. &Dist.OsmanabadSec. 406, 420, r/wSec. 34 of the I. P.C & Sec. 3 of theM. P. I. D. ActKalyan Vasant Mali,R/o Tadwala Kasbe,Dhoki, DistOsmanabad06.Cr. No. 19/2016Dt. 05.02.2016Kalamb, Dist.OsmanabadSec. 406, 420, r/wSec. 34 of the I. P.C & Sec. 3 of theM. P. I. D. ActAmbadas BaburaoGambhire, R/o Itkur,Tq. Kalamb, Dist.Osmanabad07.Cr. No. 54/2016Dt. 06.02.2016Gangakhed,Dist. ParbhaniSec. 406, 420 r/wSec. 34 of the I. P.Code.Atul NandkishorUdavant R/oGangakhed(iii)The transferee Court shall follow the same procedurewhich has been followed by the earlier Courts and as permissiblein law.[SHAILESH P. BRAHME J.] bsb/March 25