Case Background
This case arose from K. Hat P.S. Case No. 514 of 2014, registered at Khazanchi Hat Police Station, District Purnea. The police case was based on a complaint from the Bihar State Power Holding Company Limited (earlier Bihar State Electricity Board) regarding alleged misappropriation of consumer payment by one of its employees.
The petitioner was a Grade-III employee in the Electric Supply Division, Kishanganj. On 15.10.2012, he received an amount of Rs. 5282/- from a consumer, Smt. Asha Devi, towards electricity dues. However, in the official register he recorded only Rs. 582/-. On this basis, it was alleged that he had misappropriated the difference of Rs. 4700/-.
Subsequently, on the basis of Letter No. 1669 dated 09.07.2014 issued by the new Electrical Executive Engineer to the Officer Incharge, K. Hat P.S., an FIR was lodged for misappropriation of Rs. 4700/-. After investigation, the learned Chief Judicial Magistrate, Purnea, took cognizance of offences punishable under Sections 409 and 406 of the Indian Penal Code by order dated 21.08.2014.
Against this cognizance order and the entire criminal proceeding, the petitioner approached the Patna High Court under Section 482 of the Code of Criminal Procedure, 1973, in Criminal Miscellaneous No. 3609 of 2015. He sought quashing of the FIR, the cognizance order, and all subsequent proceedings.
What the Court Examined and Decided
The Patna High Court, through Hon’ble Mr. Justice Ahsanuddin Amanullah, heard arguments from the petitioner’s counsel, the Additional Public Prosecutor representing the State, and counsel for the Bihar State Power Holding Company Limited (referred to as the “Company”).
The central allegation against the petitioner was straightforward: while on duty on 15.10.2012, he received Rs. 5282/- from consumer Smt. Asha Devi but entered only Rs. 582/- in the official register. The police and the Magistrate treated this as deliberate misappropriation of Rs. 4700/-, attracting Sections 409 and 406 of the Indian Penal Code (criminal breach of trust by a public servant and criminal breach of trust).
The petitioner’s defence, as placed before the High Court, was that the criminal case was mala fide and not maintainable. He did not deny that he had received Rs. 5282/- from the consumer. However, he said that while making the entry in the register he was overburdened with work and, by mistake, missed entering the digit “2” in the middle, thus recording “582” instead of “5282”.
Counsel for the petitioner argued that this was a human error rather than a planned act. If there had been an intention to misappropriate, the entry would likely have been some rounded figure that could not be easily linked to the actual amount received. Instead, the entry of “582” clearly showed that only one digit was missing from the real figure “5282”. According to the petitioner, this supported his claim of it being an inadvertent mistake rather than a deliberate manipulation.
The Court was also told about the steps taken after the error came to light. Once the shortfall was detected, the petitioner himself moved an application before the then Executive Electrical Engineer, Electric Supply Division, Purnea. In this application, he accepted the mistake and requested permission to deposit the shortfall amount of Rs. 4700/-.
Acting on this application, the Executive Electrical Engineer passed an order dated 06.05.2014, allowing the petitioner to deposit the shortfall. In compliance, on 09.05.2014, the petitioner deposited Rs. 4700/- in the bank account of the then Bihar State Electricity Board.
Thereafter, by order dated 12.05.2014, the Assistant Electrical Engineer, Electric Supply Division, Purnea (Urban), directed the petitioner to pay interest on the delayed deposit of Rs. 4700/-. The interest was calculated at Rs. 1269/-. The petitioner deposited this interest amount also, on the very next day, i.e., on 13.05.2014.
The petitioner’s counsel argued that after these events there remained no misappropriation. The entire amount, along with interest, had been credited into the Company’s account. Despite this, the new Electrical Executive Engineer, allegedly without being fully briefed by his office about the earlier deposits and orders, issued Letter No. 1669 dated 09.07.2014 to K. Hat Police Station asking for lodging of an FIR for misappropriation of Rs. 4700/-.
Therefore, on the date of this letter and the resulting FIR, the amount and interest were already in the Company’s coffers on the authority of departmental orders passed much earlier in May 2014. The petitioner’s side contended that in such a situation, continuing with criminal proceedings was an abuse of the process of the court and should be quashed under Section 482 CrPC.
A key development in the case was the stand taken by the Company itself before the High Court. Counsel for the Company filed a counter affidavit and brought on record the relevant documents, including those relating to the petitioner’s application, the orders permitting deposit, and proof of deposit of both the shortfall amount and the interest.
Importantly, the Company’s counsel did not deny the factual narrative put forward by the petitioner. He specifically did not controvert the claim that the full amount and interest had been deposited before the letter of 09.07.2014, and that the steps were taken with the knowledge and orders of the then Executive Electrical Engineer and Assistant Electrical Engineer.
The learned Additional Public Prosecutor for the State took a fair stand as well. Once the Company itself accepted that it was an error and admitted that the amount and interest had been received, the State’s counsel submitted that the application for quashing deserved to be allowed.
The Court considered the overall facts and circumstances. It took note of several aspects:
- The petitioner’s explanation that the entry “582” instead of “5282” appeared to be a bona fide human error.
- The petitioner had voluntarily approached his superior, admitted the mistake, and sought permission to deposit the shortfall.
- The competent authority had allowed the deposit, and the petitioner had deposited both the shortfall and the interest even before the request for lodging of FIR.
- The Company, through its counsel and documents, supported the factual position and did not allege any continuing misappropriation.
- The State also agreed that, in view of the Company’s stand, the case for quashing was made out.
After taking these factors into account, the Patna High Court exercised its inherent powers under Section 482 CrPC. It held that the application should be allowed and that continuing the criminal case would not serve the ends of justice.
The Court therefore quashed the entire criminal proceeding arising out of K. Hat P.S. Case No. 514 of 2014, which was pending before the court below at Purnea. It specifically set aside the cognizance order dated 21.08.2014 by which the learned Chief Judicial Magistrate, Purnea, had taken cognizance of offences under Sections 409 and 406 IPC against the petitioner.
Before concluding, the Court recorded its appreciation for Mr. Kumar Priya Ranjan, learned counsel for the Company, for promptly appearing on request of the Court, filing the counter affidavit, and taking a fair stand.
Why This Judgment Matters
This judgment is important for employees of government departments, public sector undertakings, and utilities such as electricity boards. It shows that every mistake in handling money does not automatically become a criminal case if the facts clearly show it was a genuine error, later corrected in full.
Here, the Patna High Court noted that the petitioner had already deposited the full shortfall and even paid interest under departmental orders, long before the FIR was sought. The power company itself accepted the error and supported the factual background. In such a situation, the Court held that continuing a criminal case under serious sections like 409 and 406 IPC was not justified.
For ordinary employees, this decision indicates that if a genuine mistake occurs in handling official money, it is important to immediately report it, admit the error, and deposit any shortfall as soon as possible. The documentation of such steps and the stand taken by the department can later be crucial in court.
At the same time, the judgment does not say that all shortages or irregularities are mere mistakes. It turned on the specific facts: clear numerical error, voluntary correction, acceptance by the department, and absence of continuing loss. Where there is evidence of dishonest intention or refusal to make good the loss, criminal prosecution can still proceed.
Legal Issues and Answers
Issue: Should the criminal proceedings for alleged misappropriation of Rs. 4700/- by an electricity employee, including cognizance under Sections 409 and 406 IPC, continue when the employee has already deposited the full amount and interest and the power company accepts it was an error?
Answer: No. The Patna High Court held that, in the facts of this case, the error appeared bona fide, the amount and interest had been deposited under departmental orders, and the Company did not dispute this. Therefore, the entire criminal proceeding, including the cognizance order dated 21.08.2014, was quashed under Section 482 CrPC.
Cases Cited by the Court
- No prior judgments are cited or relied upon in the text of this decision.
Case Details
Case Number: Criminal Miscellaneous No. 3609 of 2015; arising out of K. Hat P.S. Case No. 514 of 2014, District Purnea.
Case Title: Md. Abdul Mannan v. The State of Bihar & Ors.
Citation: 2019 (2) PLJR 1086
Court: High Court of Judicature at Patna
Coram: Hon’ble Mr. Justice Ahsanuddin Amanullah
Date of Judgment: 10.05.2019
Advocates:
- For the Petitioner: Mr. Ashok Kumar Jha, Dr. Bidhu Ranjan, Advocates
- For the State: Mr. Jharkhandi Upadhyay, APP
- For the Power Company: Mr. Kumar Priya Ranjan, Mr. Niraj Kumar, Advocates
Nature of the Case: Petition under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR and cognizance order in a criminal case alleging misappropriation (offences under Sections 409 and 406 IPC).
Link to Judgment: View full judgment on Patna High Court website
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