1 APL.635-2023..JUDGMENT.odt

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

NAGPUR BENCH : NAGPUR

CRIMINAL APPLICATION (APL) NO. 635 OF 2023

Shri Jitendra s/o Babulal Katre,

Aged about 49 yrs, Occ-Agriculturist,

R/o Chichgaon, Post. Gankaira,

Tah. Goregaon, Dist- Gondia. APPLICANT

Versus

1.The State of Maharashtra,

Thr. Police Station Officer, Goregaon

Police Station, Goregaon,

Tah. Goregaon and District Gondia.

2.Mr. Manoj Kumar Bajpiya,

Aged Major, Occ- District Marketing

Officer,

R/o Chaudhari Niwas, Shastri Ward,

Gondia, Tah. and District Gondia..NON-APPLICANTS

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Mr. Amol S. Mardikar, Advocate for the Applicant.

Mr. A.M. Kadukar, APP for the Non-applicant No.1/State.

Mr. P.D. Meghe, Advocate for the Non-applicant No.2.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

CORAM :URMILA JOSHI PHALKE, J.

RESERVED ON : 05

th

MARCH, 2026.

PRONOUNCED ON : 12

th

MARCH, 2026.

ORAL JUDGMENT :- 2026:BHC-NAG:4207-DB

2 APL.635-2023..JUDGMENT.odt

1. Heard.

2. ADMIT. Heard finally by the consent of learned

Counsel for the respective parties.

3. The present Application is preferred by the

Applicant for quashing of the First Information Report (“FIR” for

short) in connection with Crime No.75/2023 registered with

Police Station Goregaon, District Gondia for the offence

punishable under Sections 420, 406, 409 read with Section 34

of the Indian Penal Code (“IPC” for short) and consequent

proceeding arising out of the same bearing Charge-sheet

No.361/2025.

4. The crime is registered on the basis of a report

lodged by the Non-applicant No.2/Manoj Kumar Bajpiya,

District Marketing Officer alleging that the present Applicant is

the President of Krushi Vikas Sheti Sadhan Samugri and

Purawatha Bahuuddeshiya Sanstha Maryadit, Chichgaon who

entered into an agreement with Maharashtra Cooperative

Marketing Federation Ltd., to collect paddy from the

agriculturist. For the season 2021-22 the said Society has

3 APL.635-2023..JUDGMENT.odt

collected total Paddy of 65742.80 quintals. On verification of

stock register and record it was found that, there is a difference

of 16548.11 quintals in the actual collection, which was actually

transferred to the Rice Mills. The Complainant who is the

District Marketing Officer has inspected the record and it reveals

to him that there is a criminal breach of trust as well as

misappropriation of paddy, therefore he lodged the report. On

the basis of the said report Police have registered the crime

against the present Applicant. During investigation, the

Investigating Officer has collected the relevant documents,

recorded the relevant statements of witnesses and filed

charge-sheet against the present Applicant.

5. Heard learned Counsel for the Applicant, who

invited my attention towards the communication filed by the

present Applicant with the graders and submitted that, there

was an agreement between the Society of the present Applicant

and the graders. The graders are appointed to collect the paddy

and damage was caused when the paddy was in possession of

various graders. Due to the loss caused to the Society, the

present Applicant has also preferred Civil Suit bearing

4 APL.635-2023..JUDGMENT.odt

No. 528/2022 in the Court of Cooperative Court, Nagpur

against one of the grader namely Meghnath Tejlal Tembhare.

The notices were also issued by the present Applicant to the

various graders. Thus, he has already taken an action against

the graders for the loss caused to the Society. As far as the

present Applicant is concerned, there was no entrustment with

him or the Society. In fact in view of agreement between the

Marketing Federation and the Society, the Society was under

obligation to collect the paddy from various agriculturist and to

be handed over to various Rice Millers. The Society was also

empowered to appoint the graders for that purpose.

Accordingly, the Society has appointed the graders. It were the

graders who have collected the said paddy and it was kept in

the godowns of the said graders. As the graders have not kept

the said food grains in a proper condition and the loss was

caused, therefore notices were issued by the Society to various

graders. In view of that, the entire paddy was entrusted with the

various graders and the present Applicant being the President of

the Society, has already initiated action against the graders, and

therefore, no intention can be attributed to the present

5 APL.635-2023..JUDGMENT.odt

Applicant. In view of that, the Application deserves to be

allowed.

6. Per contra, learned APP and learned Counsel for the

Non-applicant No. 2, strongly opposed the said contention and

submitted that, in view of Government Resolution, the

responsibility of the present Applicant being the President of the

Society to collect the paddy and to keep it in a secured

condition and to make all the arrangements to hand over to the

Millers without causing any loss to the said food grains. Thus,

the paddy was entrusted with the Society of the present

Applicant but he has handed over to the graders and loss is

caused to the agriculturist as well as to the Government. In view

of that, the Application deserves to be rejected.

7. On hearing both the sides and on perusal of the

investigation papers, it appears that, in view of Government

Resolution dated 30.09.2021 the Scheme was floated for the

agriculturist under the name of ‘Kiman Aadharboot Kimti Yojna’

(Minimum Support Price Scheme-MSP). In view of the said

Government Resolution, it was decided to appoint the Nodal

6 APL.635-2023..JUDGMENT.odt

Agency. The Clause 1.6 of the said Government Resolution is

reproduced as under:

“1-6 [kjsnh >kysys /kku ¼भात½ [kjsnh vfHkdrkZ laLFkkauh Lor%P;k

xksnkekr fdaok vko’;drsuqlkj HkkM;kP;k xksnkekr lkBo.kwd d:u

R;kph HkjMkbZ djkoh- lnj HkkM;kph xksnkes ‘kkldh; xksnkekiklwu

uthdP;k varjkoj vlrhy rlsp lkBo.kwd o okgrwd dj.;kl ;ksX;

vlrhy ;kph [kk=h vfHkdrkZ laLFkkauh djkoh- dsanz ‘kklukus BjfoysY;k

fofunsZ’kkuqlkj ¼mrk&;kuqlkj o brj vVh o ‘krhZuqlkj½ /kku HkjMkbZ

d:u ‘kklukP;k @ftYgkf/kdk&;kaps funsZ’kkauqlkj rkanwG ‘kklukP;k

¼ftYgk iqjoBk vf/kdkjh½ ;kaP;k xksnkekr tek djkok- /kku [kjsnh

dsanzkyxr lkBo.kwd] [kjsnh dsanz rs HkjMkbZ dsanzki;Zarph okgrwd]

lqjf{krrk] HkjMkbZ o rkanwG ‘kkldh; xksnkekr tek dj.;ki;Zarph

laiw.kZ tckcnkjh vfHkdrkZ laLFkkaph jkghy- i.ku gaxke 2021&22

lkBhps fofgr fofunsZ’k ¼Uniform Specification½ dsanz ‘kklukdMwu

fnukad 20-09-2021 jksthP;k i=kUo;s izkIr >kysys vkgsr- R;kuqlkj

i.ku gaxke 2020&21 dfjrk vlysys fofunsZ’k i.ku gaxke

2021&22 dfjrk ykxw jkgrhy vls dsanz ‘kklukdMwu dGfo.;kr vkys

vkgs- ”

8. The terms and conditions in view of Government

Resolution dated 30.09.2021, especially condition Nos.5.1.3 and

5.1.4, which reads as under:

“5-1-3 d`”kh mRiUu cktkj lferhP;k varxZr ;s.kk&;k {ks=ke/;s

vl.kk&;k [kjsnh dsanzkae/;s [kjsnh dsanzkaoj /kkU; okGfo.ks] LoPN dj.ks

rlsp /kkU;kph ukl/kwl gksow u ns.ks ;klkBh o [kjsnh izfdz;k lqjGhri.ks

gks.;klkBh vko’;d R;k ewyHkwr lqfo/kk ¼pkG.kh] ia[ks] rkMi=h]

ikWfyfFku f’kV~l oxSjslkj[kh vko’;d lk/kus] vko’;d rh otuekis

vknZzrk ekid ;a=s ¼ekWbZ{pj ehVj½ ckjnkuk] lqrGh bR;knh½ d`”kh

mRiUu cktkj lferhekQZr miyC/k d:u ?ks.;kph tckcnkjh nksUgh

[kjsnh vfHkdrkZ laLFkkaph vlsy-

5-1-4 [kjsnh djko;kP;k /kku @ HkjM/kkU;kP;k ntkZoj fu;a=.k

Bso.;klkBh vko’;d vlysyh ;a=lkeqxzh ¼Image Analysis Kit½ o

7 APL.635-2023..JUDGMENT.odt

iqjsls izf’kf{kr xzsMlZ use.;kph laiw.kZ tckcnkjh ekdsZfVax QsMjs’ku @

vkfnoklh fodkl egkeaMG ;kaph jkghy] v’kh O;oLFkk dsY;kph [kk=h

lac/khr ftYgkf/kdkjh ;kauh djkoh- [kjsnh vfHkdR;kZauh ,Q-,-D;w-

ntkZr u cl.kk&;k /kku @ HkjM/kkU;kph Eg.ktsp @ /kku] Tokjh]

cktjh edk o jkxh ;kaph [kjsnh dsyh rj R;kph laiw.kZ tckcnkjh

o ;s.kk&;k uqdlkuhph tckcnkjh gh loZLoh [kjsnh vfHkdR;kZoj

jkghy- deh ntkZps /kku @ HkjM/kkU; [kjsnh dj.;kpk iz;Ru dsY;kl

v’kk deZpk&;kaoj @ xzsMlZoj vfHkdrkZ laLFkkauh naMkRed dkjokbZ

djkoh-”

9. In view of the said terms and condition, the

Agencies which were appointed are under obligations to

purchase the food grains to keep it in a proper condition to

avoid any loss to the said food grains. The condition 5.1.4 also

discloses that, the said Agencies are empowered to appoint the

trained graders. It is specifically mentioned that, if any loss is

caused to the said food grains which are purchased under the

said Scheme, the entire responsibility would be on the Agencies.

In view of the said Government Resolution, the District

Marketing Officer of the Maharashtra State Cooperative

Marketing Federation Ltd., Mumbai entered into an agreement

with the present Applicant as a President of Krushi Vikas Sheti

Sadhan Samugri and Purawatha Bahuuddeshiya Sanstha

Maryadit, Chichgaon for the year 2021-22 by agreement dated

12.11.2021.

8 APL.635-2023..JUDGMENT.odt

10. As per the terms and conditions of the said

agreement, the Society has to purchase the food grains from

various agriculturist. While purchasing the food grains from the

agriculturist, the Society is under obligation to verify the 7/12

extract of the agriculturist and the entry on 7/12 extract

regarding cultivation of the said food grains and thereafter to

purchase the same. It is further agreed that, the Society is under

obligation to keep the said food grains in such a condition that

no loss should be caused to the agriculturist and supply the

same to the various Rice Millers by maintaining the account of

the same. Thus, in view of the said agreement, the Society of

which the Applicant was the President was appointed as a Nodal

Agency to collect the said food grains from various agriculturist.

11. The present Applicant being a President of the said

Society, in view of Clause 5.1.4 of the Government Resolution

dated 30.09.2021, appointed grader namely Sachin

Radheshyam Bisen, vide letter dated 21.07.2021. The

Resolution passed by the Society is dated 10.11.2021. The

Resolution passed by the Society shows that, the Society is

having two godowns for the stock of the said food grains but

9 APL.635-2023..JUDGMENT.odt

there is a possibility of having an additional stock, and

therefore, the Society has purchased two additional godowns

one is from one Meghnath Tembhare and another from

Duryodhan Choudhary. Therefore, Meghnath Tejlal Tembhare

and Duryodhan Fakir Choudhary were appointed as graders. As

per the said Resolution both the graders have obtained training

from Sachin Bisen who was also appointed as a grader and

thereafter they have to collect the food grains for stock.

12. The Resolution further shows that, the graders who

purchase the said food grains, would be responsible for any loss

if caused from collecting till delivery of the said food grains. It

reveals from various statements and the communication on

record that the loss was caused to the food grains which are

collected by the graders, and therefore, the Applicant being a

President of the said Society filed a civil suit against one

Meghnath Tejlal Tembhare bearing No. 528/2022.

13. The pleading in the said suit shows that defendant

therein was appointed as the employee on the post of grader on

contract basis by the disputant Society. As per the directions of

the District Marketing Officer the farmers nearby and adjoining

10 APL.635-2023..JUDGMENT.odt

to the Center, stored the paddy and at the time of storage of

paddy by the farmers, the appointed grader has to measure the

weight of the paddy and bound to give the slip to the farmers

regarding the measurement / weight of the paddy. The grader

thereafter pack the said paddy in Jute bags with the measured

weight of 40 Kg per bag. As per the direction given by the

District Marketing Officer the grader has to send the said

paddies bag of 40 Kg. each to the Miller for processing. The

grader has to keep the record of every purchase, measurement

and weight in writing regarding the paddy at center and the

same has to be submitted to the disputant society as well as the

District Marketing Officer. The paddy which has to be given to

the Miller for processing is measured in quintals and the

quantity has to be given as per the directions given by the

District Marketing Officer. As per the notification, the shortage

of 1% i.e. 1 kg of paddy is approved for every 1 quintal of

paddy. As per the said notification, if the District Marketing

Officer found that there is more shortage in weight of delivering

the paddy to the rice miller, then the permissible shortage from

the center, in that event the District Marketing Officer deduct

11 APL.635-2023..JUDGMENT.odt

the amount from the Society @ 1.5% of the total shortage from

the commission of the disputant Society.

14. It is further pleaded that, said Meghnath Tembhare

was appointed as an employee of the Disputant Society at

Katangi Center. He has to measure the weight of the paddy per

quintal brought by the farmer at his center and to keep the

record of the same. It is also his duty to deliver the paddy to the

miller at Center for processing. He was appointed on contract

basis. The agreement was executed on 10.12.2021 for the Kharif

Harvest and Rabi Harvest for the year 2021-22. In the harvest

year 2021-22, the total quantity of paddy was 17413.80 quintals

received from the farmers but at the time of delivery to the

miller it was delivered only 12318 quintal paddy. Thus, there

was total shortage of 5095.80 quintals of paddy at Katangi

Center. As per the permissible shortage of 1 Kg., on 1 quintal the

total 175 quintal is exempted. Therefore the actual shortage at

Katangi Center is 4920.80 quintals. As per the norms of the

Maharashtra State Marketing Federation the commission is

given to the Disputant Society for taking the paddy from the

farmer, storing it, and giving it to the miller for process.

12 APL.635-2023..JUDGMENT.odt

Therefore, the said Maharashtra State Marketing Federation will

deduct the amount of shortage from the commission of the

Disputant Society and thus malpractice committed by the said

Meghnath Tejlal Tembhare and loss is caused to the Society.

15. Thus, it reveals that the Marketing Federation

entered into an agreement with the Society and the Society has

appointed some graders for securing and storing the said food

grains. As per the allegation levelled by the prosecution, on

inspection of the stock register it was found that there is a

difference of 16548.11 quintals in the actual collection, which

was actually transferred to the Rice Mills. The Government

Resolution by which the Society of which the Applicant was the

President was appointed as a Nodal Agency. In view of Clause

5.1.4 though the Nodal Agency was permitted to appoint the

graders, however the Government Resolution completely gives

the responsibility on the Nodal Agency for any loss caused or for

any misappropriation or illegal activity committed while

collecting the paddy. During investigation, various statements of

the witnesses were recorded. The statements of witnesses also

disclose the involvement of the Society and being the President

13 APL.635-2023..JUDGMENT.odt

of the said Society, the responsibility was of the present

Applicant.

16. In view of the Government Resolution and

agreement entered into by the Marketing Federation with the

Society, the entire responsibility is owned by the Society and to

ease the work of the Society the graders were appointed. In

view of Government Resolution though the Society is permitted

to appoint the graders but graders should be the trained graders

and even if the graders collects the paddy for the Society, it was

the Society who is responsible for any loss caused to the food

grains collected.

17. The recitals of the FIR and the investigation papers

shows that on verification of the stock register and record it was

found that there is difference of 16548.11 quintals in the actual

collection, which was actually transferred to the Rice Mills. The

present Application is filed by the Applicant on the ground that,

due to election of Zilla Parishad, Gondia he was busy, and

therefore, he could not devote time and only the graders are

responsible, cannot be acceptable. During investigation it

revealed that, approximately there was misappropriation of

14 APL.635-2023..JUDGMENT.odt

3000 quintals paddy for the month of November 2021 and

13,000 quintals in the month of June-July 2022. In view of the

Government Resolution and agreement executed between the

Board of Directors and the President and other office bearers,

who are liable and responsible for the day to day affairs of the

Society. The issue involved is the loss to the agriculturist and

there is misappropriation of 16,000 quintals paddy worth of

Rs.3.21 Crores. Thus, only the loss is not caused to the

agriculturist but it was also caused to the Government

exchequers and the involvement of the present Applicant

reveals.

18. While exercising the jurisdiction under Section 482

of the Code of Criminal Procedure, it is well settled that the

power is to be used sparingly and only for the purpose of

preventing abuse of the process of any court or otherwise to

secure ends of justice. Whether a complaint discloses a criminal

offence or not depends upon the nature of facts alleged therein.

Whether essential ingredients of criminal offence are present or

not has to be judged from the investigation papers.

15 APL.635-2023..JUDGMENT.odt

19. In the case of State of Harayana & Ors. Vs. Ch.

Bhajan Lal & Ors., 1992 AIR 604, the Hon’ble Apex Court has

laid down the parameters as to the exercise of powers under

Section 482 of Cr.P.C., which reads as under:

“(1) Where the allegations made in the first information

report or the complaint, even if they are taken at their face

value and accepted in their entirety do not prima facie

constitute any offence or make out a case against the

accused.

(2) Where the allegations in the first information report

and other materials, if any, accompanying the FIR do not

disclose a cognizable offence, justifying an investigation by

police officers under Section 156(1) of the Code except

under an order of a Magistrate within the purview of

Section 155(2) of the Code.

(3) Where the uncontroverted allegations made in the FIR

or complaint and the evidence collected in support of the

same do not disclose the commission of any offence and

make out a case against the accused.

(4) Where, the allegations in the FIR do not constitute a

cognizable offence but constitute only a non-cognizable

offence, no investigation is permitted by a police officer

without an order of a Magistrate as contemplated under

Section 155(2) of the Code.

(5) Where the allegations made in the FIR or complaint are

so absurd and inherently improbable on the basis of which

no prudent person can ever reach a just conclusion that

there is sufficient ground for proceeding against the

accused.

(6) Where there is an express legal bar engrafted in any of

the provisions of the Code or the concerned Act (under

which a criminal proceeding is instituted) to the institution

and continuance of the proceedings and/or where there is

a specific provision in the Code or the concerned Act,

providing efficacious redress for the grievance of the

aggrieved party.

16 APL.635-2023..JUDGMENT.odt

(7) Where a criminal proceeding is manifestly attended

with mala fide and/or where the proceeding is maliciously

instituted with an ulterior motive for wreaking vengeance

on the accused and with a view to spite him due to private

and personal grudge.”

20. In view of well settled law as to the quashing of the

FIR the facts and circumstances of the present case are to be

looked into. Undisputedly, the present Applicant was the

President of the said Society. In view of Government Resolution

the Marketing Federation has appointed Society as a Nodal

Agency to collect the food grains and entire responsibly was of

the Society to maintain the record as well as to keep the food

grains in a secured condition. The Society has appointed some

graders in view of Government Resolution and only the trained

graders are to be appointed. There is nothing on record to show

that, the graders who are appointed by the Society are the

trained graders and they have obtained the training from the

trained graders.

21. The investigation papers shows that, there is

misappropriation of food grains of approximately 16,000

quintals paddy worth of Rs. 3.21 Crores. Being the President of

the Society the present Applicant and the other Board of

17 APL.635-2023..JUDGMENT.odt

Directors are responsible for any loss caused to the said food

grains. The various documents collected during the

investigation and the statements of witnesses disclose that the

food grains are entrusted with the Society and the same were

collected through the graders and there is misappropriation of

the said food grains. Therefore, the factual position would

reveal the involvement of the present Applicant in the alleged

offence.

22. To constitute the offence punishable under Section

420 of IPC there must be deception i.e. the accused must have

deceived someone that by such deception the accused must

induce a person to deliver any property or to make, alter or

destroy the whole or any part of a valuable security, or anything

which is signed or sealed, and which is capable of being

converted into a valuable property or that the accused must

have done so dishonestly.

23. To constitute the offence punishable under Section

406 of IPC, the definition of criminal breach of trust is defined

in Section 405 of IPC is relevant, which reads as under:

18 APL.635-2023..JUDGMENT.odt

“405. Criminal breach of trust.—Whoever, being in any

manner entrusted with property, or with any dominion

over property, dishonestly misappropriates or converts to

his own use that property, or dishonestly uses or disposes

of that property in violation of any direction of law

prescribing the mode in which such trust is to be

discharged, or of any legal contract, express or implied,

which he has made touching the discharge of such trust, or

wilfully suffers any other person so to do, commits

“criminal breach of trust”.”

24. The ingredients in order to constitute a criminal

breach of trust are:

(1) There must be entrustment with person for

property or dominion over the property, and

(2) The person entrusted:

(a) Dishonestly misappropriated or converted

property to his own use, or

(b) Dishonestly used or disposed of the

property or willfully suffers any other person

so to do in violation of:

(i) Any direction of law prescribing the

method in which the trust is discharged; or

(ii) Legal contract touching the discharge of

trust.

25. Section 408 of IPC is the exhaustive form of the

criminal breach of trust. In Sections 406, 408 and 420 of IPC,

mens rea i.e. intention to defraud or the dishonest intention

19 APL.635-2023..JUDGMENT.odt

must be present, and in the case of cheating it must be there

from the very beginning or inception.

26. In the light of the above facts and circumstances of

the case as observed the food grains were entrusted with the

Society of which the present Applicant was President. He was

under duty to secure and also to appoint the trained graders to

keep it in the safe custody. On inspection of the record, the

Marketing Federation Officer found shortage of stock as per the

record and thereafter the report is filed. Huge quantity was

misappropriated after it was entrusted with the said Society.

Thus, at this stage, prima facie case is made out against the

present Applicant who was looking day to day business of the

Society. In view of that, by applying the parameters laid down

by the Hon’ble Apex Court, prima facie case is made out and

hence, the Application deserves to be rejected. Accordingly, I

proceed to pass the following order.

O R D E R

i.Criminal Application is rejected.

20 APL.635-2023..JUDGMENT.odt

27. Pending application/s, if any, shall stand disposed of

accordingly.

(URMILA JOSHI PHALKE, J.)

S.D.Bhimte