KANSARI MANDAL Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) The petitioners have challenged the order dated 16.06.2015 by which cognizance of the offence punishable under section 406, 420/120-B IPC has been taken in C.P. No. 42 of 2015 and summons has been issued to them. They are members of the Dhanbad Bar Association who were elected office-bearers of the Association for 2012-2014.

(2.) An audit of accounts of the Dhanbad Bar Association was conducted by M/s Anjali Jain & Associates which has submitted a report to the Association on 30.08.2014. The gravamen of the allegations against the petitioners is that the auditors have found misappropriation of Rs.1.25 crores from the funds of the Association. In the report dated 30.08.2014, what the auditors have observed, therefore, has become important. A copy of the audit report has been brought on record by the complainant-O.P No. 2 vide Annexure-C to the counter-affidavit. The relevant extracts of the report are reproduced below: <FRM>JUDGEMENT_116_LAWS(JHAR)2_2019_1.html</FRM>

(3.) The complaint-petition proceeds on a premise that withdrawal beyond Rs.10,000/- is not permissible and if at all fund is required urgently it has to be approved in the General Body Meeting which has not been done and the Model Rules, in particular, Model Rule 23(b) have not been followed. The petitioners were custodian of the records which they were required to produce before the auditors, but vouchers, bills etc. were not produced by them to the auditors due to which the accounts produced by them which are based on estimates have been found irregular and, thus, unacceptable. Letters were written to the Jharkhand State Bar Council for initiating an enquiry in the matter and the Bar Council of India was informed about criminal misappropriation of the funds and illegal allotment of Bar building to the shopkeepers by the accused persons by taking huge Salami for their personal benefits. The Bar Council of India has in turn written a letter to the Jharkhand State Bar Council and accordingly, an enquiry was conducted by a Committee of the Jharkhand State Bar Council which finding the complaint against the accused persons true recommended action against them and in the report submitted by the Steering Committee of the Jharkhand State Bar Council one of the recommendations was to lodge a First Information Report, if needed.