Delhi High Court

Anticipatory bail granted to incoming partner where alleged financial fraud preceded his induction into firm.

Ghisulal Jain vs State Of Nct Of Delhi

Delhi High CourtJUDGMENT: May 19, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought anticipatory bail regarding FIR No. 128/2025 involving alleged offenses under Sections 406/420/34 IPC

Source reference: p. 1-2

The complainant alleged he was induced by relatives to invest Rs. 2.5 Crores for a 20% stake in Fienza Ceramics LLP

Source reference: p. 2-3

While Rs. 98,00,000/- was transferred to the LLP bank account and reflected in balance sheets as an "unsecured loan," the promised partnership was never transferred

Source reference: p. 4-5

The petitioner joined the LLP as a designated partner on March 3, 2025, significantly after the alleged period of inducement and transaction (April–November 2023)

Source reference: p. 4, 6

Following two failed mediation attempts and the petitioner's cooperation with the investigation under interim protection, the court heard the final arguments

Source reference: p. 2, 8
02

Issues

1. Whether the petitioner is entitled to anticipatory bail under Section 482 of the BNSS considering his entry into the LLP occurred after the alleged date of offense

Source reference: p. 6, 8

2. Whether the inclusion of the complainant’s funds as an "unsecured loan" in a balance sheet signed by the petitioner constitutes sufficient evidence of criminal conspiracy to warrant custodial interrogation

Source reference: p. 7-9
03

Law Applied

The Court primarily applied Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) regarding anticipatory bail

Source reference: p. 1

It relied on the Supreme Court precedents in Ramesh Kumar v. State and Bimla Tiwari v. State of Bihar, which established that criminal proceedings must not be used as a tool for money recovery and that bail considerations should remain independent of repayment status

Source reference: p. 8

The court also considered the principles of vicarious liability and knowledge within a Limited Liability Partnership (LLP) framework

Source reference: p. 9
04

Reasoning

The Court observed that the petitioner became a partner on 03.03.2025, which was subsequent to the transactions occurring in 2023

Source reference: p. 8

The prosecution admitted there was no material showing direct contact or inducement between the petitioner and the complainant; allegations were primarily directed at co-accused Ashok Sharma and others

Source reference: p. 9

Although the petitioner signed the 2024-2025 balance sheet reflecting the funds as an "unsecured loan," the Court noted this practice was consistent with the previous year's accounts prepared before the petitioner joined

Source reference: p. 8-9

The Court reasoned that even if this was an incorrect accounting practice, it was insufficient to justify the deprivation of liberty, especially given the petitioner's advanced age (71 years), clean criminal record, and his cooperation with the Investigating Officer during interim protection

Source reference: p. 7, 9
05

Holding

The Court granted the anticipatory bail application, answering that the petitioner's subsequent joining of the LLP and lack of direct involvement favored his release

It directed that in the event of arrest, the petitioner be released on a personal bond of Rs. 1,00,000/- with one surety, subject to conditions including continued cooperation with the investigation, not influencing witnesses, and providing a permanent mobile number and address to the IO

Source reference: p. 10
Delhi High Court

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Ghisulal JainvsState Of Nct Of Delhi

Delhi High Court · May 19, 2026

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