Authority: High Court at Calcutta

Order Date: 18 September 2026

Case Overview

  • Petition: Prahlad Roy (Petitioner) vs. State of West Bengal & Anr. (CRR 2619 of 2021).
  • Criminal proceedings were initiated under IPC sections 420, 406 and 120B based on a complaint lodged on 25 January 2021 at Shankrail Police Station.
  • The complaint alleged misappropriation of funds in a savings account (A/C No. 5209) of Howrah Co-operative Bank Limited, which showed a balance of ₹23,51,811 in 2019 and only ₹4,000 in 2020.
  • The petitioner claimed he had been a director of South Howrah Cooperative Credit Society Limited until 26 September 2016 and was terminated thereafter; he argued he had no role in the alleged fraud.
  • The charge sheet named the petitioner as an accused despite the absence of his name in the original complaint and despite his termination.
  • The State argued the petitioner must face trial as a victim’s money was lost.
  • The Court examined documents, including a notice dated 4 April 2017 indicating termination of the petitioner’s directorship and debarment from future meetings.
  • Investigation records showed the petitioner’s account was not withdrawn and the bank refused to update the passbook in October 2020, leading to the complaint.
  • The Court noted that the magistrate had not applied its mind to the material, contrary to Supreme Court jurisprudence.
  • Legal precedents cited: Sunil Bharti Mittal vs CBI (vicarious liability of directors), Delhi Race Club (1940) Ltd. vs State of Uttar Pradesh (sections 420 and 406 cannot run simultaneously), and Pepsi Foods Ltd. vs Special Judicial Magistrate (necessity of careful consideration before summoning an accused).

Final Outcome

  • The High Court set aside the learned magistrate’s order of summons.
  • The matter is remanded back to the magistrate for a fresh hearing, with a directive to dispose of the case within six weeks of receiving this order.
  • The criminal revision application is allowed.
  • All other connected applications, if any, are disposed of.
  • Certified copies of the order may be supplied upon compliance with formalities.

Topics: Criminal Procedure, Cooperative Banking