GURCHARAN SINGH Vs. STATE OF HARYANA

JUDGEMENT

(1.) THIS is criminal Misc. petition No. 22578-M of 1997 whereby Gurcharan Singh petitioner has prayed to this Court for the grant of anticipatory bail to him in case FIR No. 221 dated 26.5.1997, registered at Police Station City, Jagadhri, under Section 406 of the Indian Penal Code.

(2.) ACCORDING to the prosecution, Haryana Financial Corporation agreed to advance term loan of Rs. 5,07,000/- to the industrial concern known as M/s Amrit Stcel Industries, behind Ram Lila Ground, Jagadhri, District Yamuna Nagar, as per terms and conditions of the Deed of Hypothecation dated 15.9.1994 executed by the industrial concern in favour of Haryana Financial Corporation. Gurcharan Singh petitioner was the sole proprietor of M/s Amrit Steel Industries, Jagadhri. Out of the said loan, a sum of Rs. 5,05,750/- was availed by the industrial concern and a sum of Rs. 7,51,226/- with future interest at the rate of 25% per annum from 12.9.1994 became outstanding against M/s Amrit Steel Industries to the Haryana Financial Corporation. Plant and Machinery of the concern was hypothecated to the Haryana Financial Corporation through the said deed of hypothecation dated 15.9.1994 to secure the recovery of loan together with interest. According to the prosecution, Gurcharan Singh who is sole proprietor of the said industrial concern removed the following plant and machinery installed in the industrial concern and thus violated the terms and conditions of Hypothecation Deed dated 15.9.1994.

(3.) IT has been submitted that the Haryana Financial Corporation has taken over possession of the premises and has put iron locks and now the entire machinery is with them.