In Criminal Misc. Bail Application No. 45991 of 2018, the Court rejected the bail request of Sumit Awasthi, accused in a fraud and embezzlement case involving his family. The applicant argued civil dispute, while the court noted substantial allegations, frozen assets, and high stakes precluding bail.
Bail application rejected; applicant not enlarged on bail.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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Court No. - 34
Case :- CRIMINAL MISC. BAIL APPLICATION No. - 45991 of 2018
Applicant :- Sumit Awasthi Opposite Party :- State of U.P. Counsel for Applicant :- Anand Mohan Pandey,Amit Misra Counsel for Opposite Party :- G.A.,A.K. Mishra,Satish Trivedi,Sheshadri Trivedi
Hon'ble Sudhir Agarwal,J.
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cases, therefore, applicant deserves to be enlarged on bail.
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in M/s Biomass. He used to collect cash, cheque etc., towards payment made by Complainant/Informant’s Firm to M/s Biomass for the supply of poultry feed supplements. When M/s Biomass made a demand for payment of supply of goods made to Complainant/Informant’s Firm, it was told that M/s Biomass Salesman Sumit Awasthi had collected Rs. 20,25,000/- in cash between 20.12.2013-2014 and Rs. 4,25,000/- by NEFT through applicant. M/s Biomass told that Sumit Awasthi has not deposited any cash amount collected from Complainant/Informant’s Firm for the period as told by Complainant/Informant. When enquiry was made by Complainant/Informant from its bank, it came to know that accused applicant Sumit Awasthi and Smt. Ramawati Awasthi (mother of applicant) have constituted a Firm with the same name as M/s Biomass with the only difference that the words “Private Limited” was omitted. Its address was given as residential address of accusedapplicant Sumit Awasthi. The entire amount paid by Complainant/Informant’s Firm was deposited by Sumit Awasthi in the forged firm, M/s Biomass Research and Technical Solution. It was found that amount collected by Sumit Awasthi from Complainant/Informant's firm was further invested in fake accounts, opened in the name of accused-applicant’s mother Smt. Ramawati Awasthi, his father Sri Rishi Nath Awasthi and sisters Anjali Awasthi and Rachna Awasthi. Accused-applicant Sumit Awasthi also introduced Rishi Nath Awasthi, Anand Tripathi and Vivek Tripathi as employees of M/s Biomass and told that payment of goods supplied may be given to them. Believing thereon, Complainant/Informant’s Firm also made payment to aforesaid three persons in cash of Rs. 20,25,000/- during the period of 20.12.2013-2014 and receipts were obtained from these three persons. Subsequently, when enquiry was made by M/s Biomass, they told that they had no such employee in the name of Sri Rishi Nath Awasthi, Anand Tripathi and Vivek Tripathi, therefore, on the fraud and conspiracy of Sumit Awasthi, he
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has received a huge amount from Complainant/Informant’s firm towards payment of goods supplied but it was not actually deposited with M/s Biomass, who had actually supplied goods. Accusedapplicant also introduced that M/s Biomass, to increase turnover and reduce liability has constituted sister concerned and operating M/s Biomass i.e. R.R.S. Laboratories and Promos Life Rise and Animal Health Care. Invoice of aforesaid Companies supplied to Complainant/Informant’s Firm had a logo of M/s Biomass and in that manner, he playing fraud, obtained a huge amount from Complainant/Informant’s firm and the same has been embezzled and used the same for his own purposes. Fraud played by accusedapplicant in conspiracy with persons above named, could not be detected immediately or within a reasonable time since Complainant/Informant’s Firm is in State of Tamil Nadu and that is why, some delay has occurred in detection of alleged fraud.
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implicated which will spoil their entire future but he could not dispute that accused-applicant was employed as a Salesman in M/s Biomass wherein Sri Ajay Kumar son of Dr. Vijay Shanker is one the of Director. M/s Biomass is manufacturing and supplying poultry feed supplements and sale is given effect directly by Company and also through salesmen. Accused-applicant was employed as a Salesman since 2005. M/s Biomass received a complaint from various customers from different States that Poultry Feed Supplement is not being received by them though they have made payments, either through cheque or cash, to the Salesman of M/s Biomass i.e. Sumit Awasthi accused-applicant. It was also informed that accusedapplicant told customers of M/s Biomass that there is a sister concern of M/s Biomass with the name of M/s Biomass Technical and Solution (the words “Private Limited” were omitted) and in that name, he collected cash and cheques. Thereupon, Sri Ajay Kumar, Director of M/s Biomass made enquiry and found that accused-applicant has got opened certain bank accounts in his name as well as his mother and they played fraud and embezzled a huge amount. In this regard, Sri Ajay Kumar, also initially lodged FIR registered as Case Crime No. 534 of 2014, under Sections 420, 467, 468, 471, 408 IPC, Police Station Kotwali, Kanpur Nagar in which accused-applicant and his mother Smt. Ramawati Awasthi were named and it was stated that they have embezzled and misappropriated a sum of Rs. 1,70,00,000/-. Investigating Officer after making enquiry submitted an application before Special Judicial Magistrate, Kanpur Nagar dated 04.03.2015 requesting for freezing of various bank accounts operating in different banks in the name of accused-applicant as well as his other relatives. The Firms which were constituted by accused-applicant and details of bank accounts are as under:-
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| S.No. | Bank Name | Name of Account-Holder |
Account No. |
|---|---|---|---|
| 1 | ICICI Bank | Biomass Research and Technical Solution |
06000500072 |
| 2. | ICICI Bank | R.R.S. Laboratories | 06000500562 |
| 3. | ICICI Bank | Sumit Awasthi | 06000500839 |
| 4. | ICICI Bank | Rishipal Awasthi | 060001502789 |
| 5. | ICICI Bank | Ramwati Awasthi | Not clear |
| 6. | ICICI Bank | Rachna Awasthi | 060001503183 |
| 7. | ICICI Bank | Anjali Awasthi | 060001502837 |
| 8. | HDFC Bank | Biomass Research and Technical Solution |
0298761000115 |
| 9. | HDFC Bank | R.R.S. Laboratories | 0292020002614 |
| 10. | HDFC Bank | Sumit Awasthi | 02981000135122 |
| 11. | HDFC Bank | Rachna Awasthi | 50100040110992 |
| 12 | HDFC Bank | Rishipal Awasthi | Not clear |
| 13. | SBI | R.R.S. Laboratories | 32170729257 |
| 14. | SBI | Sumit Awasthi | 20016283027 |
| 15. | OBC Bank | Promos Life Rise and Animal Health Care |
525011310..... |
| 16. | OBC Bank | Sumit Awasthi | 5250219100... |
| 17. | IDBI Bank | Sumit Awasthi | 01411040000508.. |
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compromise was sought to be made, and against the alleged embezzled sum of Rs. 1,70,00,000/-, accused-applicant agreed to pay Rs. 40,00,000/- through cheque. This also shows that he has made transactions of huge amount though has not disclosed his financial status in the capacity of Salesman.
Order Date :- 10.12.2019 Siddhant Sahu
3 issues framed by the court
Whether the accused applicant is entitled to be enlarged on bail in a case involving allegations of large-scale fraud and embezzlement where accusations implicate multiple family members.
Whether the materials placed on record, including frozen bank accounts and prior FIRs in family members, make this a fit case to grant bail under Section 437/439 Cr.P.C.
Whether the possibility of tampering with evidence due to the applicant's central role justifies rejection of the bail application.
Sumit Awasthi
Sudhir Agarwal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
