SEWA SINGH AND ANOTHER Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Through this Crl. Misc. No. 18 559-M of 1999, Sewa Singh and Mewa Singh sons of Chuhar Singh are claiming anticipatory bail in case FIR No.37 dated 30.4.98 registered at Vigilance Bureau, Patiala under Section 420, 467, 468, 471, 218, 120-B IPC and 13(1)(b)/13(2) of the Prevention of Corruption Act. 1998. This prosecution originated in complaint Annexure P 1 filed by Bhartyia Kisan Union, Blocks Sanour and Bhunarheri.

(2.) During the year 1993-94 and 1994-95, Govt. used to give subsidy to the concerns engaged in the manufacture of fertilizers including single Super Phosphate at the rate of Rs. 340/- per ton. M/s Modern Agro Chemical Industries Pvt. Ltd. was engaged in that business which was constituted by the members of the same family excepting one person who was an outsider. According to the prosecution, Modern Agro Chemical Industries Pvt. Ltd. used to issue false bills to show the sale of fertilizer to different dealers and the dealers had shown the receipt of fertilizer in their registers and issued bills showing the sale of fertilizers in the name of fake customers and the companies had thus received subsidy of Rs.340/- per ton. Modern Agro Chemical Industries Pvt. Ltd. received subsidy of Rs. 49, 7,600/- from the Govt.

(3.) As per the applicants, they became the Directors of the Modern Agro Chemical Industries Pvt. Ltd., Jalandhar in the year 1985. Swaran Singh, Rajinder Singh, Kanwaljit Singh and Laxmi Narain are the other Directors. Amrik Singh, Director resigned and his resignation was accepted vide resolution dated 1.10.92. Swaran Singh was the Managing Director of the company and the company was being run by the Managing Director Swaran Singh. So far as they are concerned, they never participated in any managerial or organisational work of the company. As per Sewa Singh and Mewa Singh, they never attended any meeting of the company nor they were paid any remuneration from the assets of the company. They were sleeping directors. It was further submitted that vide clause 34 of the memorandum of organisation only Managing Director of the Company Swaran Singh is responsible for all omissions and commissions of the company and there is finding to this effect Annexure P8 by the Joint Director, Prosecution accepted by Additional DGP, Vigilance. It was further submitted that after fertilizer is produced in the company, order is placed on transporters and they lift the fertilizers from the company and deliver it to the dealers. Names of dealers are given to the respective transport companies and transportation charges are paid by the dealers after the fertilizer is received by them. Number of truck/vehicle through which fertilizer is dispatched to the dealer is recorded in the record of the company. It was further submitted that at the gate of the company, Agriculture Inspector is always present on behalf of the Govt. who also notes down the number of vehicle/truck and the number of bags of fertilizers carried through the said truck/vehicle and the Agriculture Inspector is required to send report to the head office every day when the fertilizer was received by the dealer. There also the number of truck/vehicle is noted down and after the fertilizer was received, payment was made. It was submitted that so far as this company is concerned, it has not control over the transport companies to arrange to transportation of fertilize from the factory to the dealers and they had mostly been transporting fertilizer through Kamal Freight Carrier, Jalandhar, which is a transport company of repute and was for that transport company to arrange the truck/vehicle for the transportation of fetilizers to the dealers. It was further submitted that complaint Annexufe P1 filed by Bhartiya Kisan Union, Blocks Sanour and Bhunarheri made in the year 1995 against some dealers of district Patiala that they are making some bogus enfires and were not supplying proper fertilizer to the farmers was investigated by the entries branch of the State of Punjab and they submitted their report Annexure P2 finding no truth therein. It was further submitted that this case is politically motivated because the State is being ruled by the Akalis while they owe allegiance to the Congress. It was further submitted that investigation was begun afresh under the orders of the present Chief Minister of Punjab which had been closed earlier by the crime branch.