JUDGMENT - A.V. SAVANT, J.:-These three applications were heard together, since they arise out of the same set of facts and relate to the same crimes, punishable under sections 409, 420 read with section 34 and section 120-B of the Indian Penal Code. (i) Criminal Application No. 1646 of 1994 was filed in this Court on the 4th July, 1994 by the 6 applicants, who have prayed for anticipatory bail under section 438 of the Code of Criminal Procedure. (ii) Criminal Application No. 1648 of 1994 has been filed by the original complainant - Maharashtra Small Scale Industries Development Corporation Limited, a Maharashtra Government Undertaking (for short, the MSSIDC). This application has been filed on the 5th July, 1994 challenging the order dated June 30, 1994 passed by the learned Metropolitan Magistrate, 19th Court, Esplanade, below the 3rd remand application dated 30th June 1994 in C.R. No. 5 of 1993. Under the impugned order dated June 30, 1994, two accused viz. Kantilal Manilal Morakhia and Prakash Shevantilal Morakhia have been ordered to be released on bail in the sum of Rs. 50,000/- each or on their depositing cash of Rs. 35,000/- each, with a direction to attend the Police Station from 10.00 a.m. to 05.00 p.m. until further orders. It must, however, be stated that this order has been stayed by this Court on 30th June 1994 itself, as a result of which the said two accused Kantilal and Prakash are still in the jail. (iii) Criminal Application No. 1654 of 1994 has been filed on the 6th July, 1994 by the State Government for similar relief as the one prayed for by the MSSIDC in its Criminal Application No. 1648 of 1994 viz. challenging the Order dated 30th June, 1994 passed by the learned Magistrate releasing the above mentioned two accused on bail. Since the three applications have been heard at length, it is necessary to briefly state a few facts for the purpose of considering the question of grant of bail and anticipatory bail. 2. M/s. Metal Tube Rolling Mills, at Marol Maroshi Road, Andheri, Bombay : 59 is a Partnership Firm, dealing in import and manufacture of certain items, for which it approached the MSSIDC some time in the year, 1989. The said Firm had six partners and the two accused, who have been granted bail viz. 2. M/s. Metal Tube Rolling Mills, at Marol Maroshi Road, Andheri, Bombay : 59 is a Partnership Firm, dealing in import and manufacture of certain items, for which it approached the MSSIDC some time in the year, 1989. The said Firm had six partners and the two accused, who have been granted bail viz. Kantilal Morakhia and Prakash Morakhia, are the two principal partners; the other four partners being women viz. -- (i) Smt. Manjulaben Sevantilal Morkhia; (ii) Smt. Kantaben Rasiklal Morakhia; (iii) Smt. Rasilaben Ashokkumar Morakhia; and (iv) Kumari Bharati Manilal Morakhia. All the partners belong to the Morakhia Family and it seems that the Family has number of other Firms in which some of the 6 applicants in Criminal Application No. 1646 of 1994 are partners. The said 6 applicants in Criminal Application No. 1646 of 1994 apprehended their arrest in connection with the above mentioned offences punishable under sections 409, 420 read with section 34 and section 120-B of the Indian Penal Code and have hence, applied for anticipatory bail. Initially, I was inclined to direct the Counsel for the applicants in Criminal Application No. 1646 of 1994 to approach the Sessions Court since that had not been done. However, it is brought to my notice that these three applications are pending in this Court for more than three weeks now and have been heard earlier by two of my learned brothers and hence, under the circumstances, rather than sending the matters back to the Sessions Court, I thought it proper to hear them finally. 3. It appears that pursuant to the correspondence and the Agreement between the parties, the MSSIDC imported certain raw material for and on behalf of the Firm - M/s. Metal Tube Rolling Mills, mentioned above, and the material imported was supposed to be used by the Firm for its own consumption and not for sale. It is stated that the imports were against Actual Users Licence. However, contrary to the terms of the said licence, the Firm and its partners are alleged to have disposed of the imported material in the open market since the value of the imported material viz. brass and copper had shot up during the relevant time. It is stated that the imports were against Actual Users Licence. However, contrary to the terms of the said licence, the Firm and its partners are alleged to have disposed of the imported material in the open market since the value of the imported material viz. brass and copper had shot up during the relevant time. It is alleged that the parties to whom the imported material has been sold are yet to be traced and the details of the transactions of the said sale are yet to be collected. 4. It also appears that there are some civil disputes pending between the MSSIDC and the partners of M/s. Metal Tube Rolling Mills. A dispute is pending on the Original Side of this Court where some Arbitration Petition has been filed and the stay of arbitration proceedings has been obtained. The Firm M/s. Metal Tube Rolling Mills had also filed Writ Petition No. 1723 of 1993 in this Court for quashing the investigation into this complaint. The writ petition was dismissed summarily on 5th October, 1993. An appeal against the said order was dismissed by the Division Bench on 25th January, 1994. 5. I have heard all the learned Counsel at length. According to Mr. Bhonsale appearing for the MSSIDC and Mr. Mirza appearing for the State, the transactions between the accused and the MSSIDC took place in or around 1989. Several representations were made by the accused, which clearly amounted to deception, as a result of which they fraudulently and dishonestly induced the MSSIDC to deliver the goods to them. The allegation of cheating has been made relying upon these circumstances. Similarly, it is alleged that the accused were entrusted with the property or dominion over the property which has been dishonestly converted to some other use. As against the actual user for which the goods were imported, they have been sold in the open market. It is in this background that the allegations of offences punishable under sections 420 and 409 I.P.C. have been made. 6. The F.I.R. has been lodged on the 23rd October, 1992. The General Manager of the MSSIDC lodged the F.I.R. with the Joint Commissioner of Police (Crime), Bombay. It was after this that the offence was registered on the 24th February, 1993. Kantilal Manilal had gone to the Andheri Police Station on the 26th February, 1993 when he was interrogated. 6. The F.I.R. has been lodged on the 23rd October, 1992. The General Manager of the MSSIDC lodged the F.I.R. with the Joint Commissioner of Police (Crime), Bombay. It was after this that the offence was registered on the 24th February, 1993. Kantilal Manilal had gone to the Andheri Police Station on the 26th February, 1993 when he was interrogated. Further interrogation is alleged to have taken place on the 3rd March, 1993. After the arbitration proceedings were stayed by this Court on the 2nd February, 1993, some of the accused claimed to have filed a suit for damages on the Original Side of this Court on 30th June, 1993, being Suit No. 2615 of 1993. It was in this background that when the investigation was in progress, the residential premises of the accused were raided on 25th June, 1994 and arrests were effected at 11.30 a.m. Apart from the two accused viz. Kantilal and Prakash, who have been granted bail and in respect of whom there is a prayer for cancellation of bail, the other three ladies who were arrested were : (i) Smt. Manjulaben Seventilal Morakhia; (ii) Smt. Kantaben Rasiklal Morakhia; and (iii) Smt. Rasilaben Ashokkumar Morakhia. The last partner Kumari Bharati Manilal Morakhia was not arrested, because she was not well. The first remand was obtained on 26th June, 1994 till 27th June, 1994. On the 27th June, 1994, the three ladies viz., Smt. Manjulaben, Smt. Kantaben and Smt. Rasilaben were released on bail. When the application for remand dated 30th June, 1994 was heard in respect of the remaining two accused Kantilal and Prakash, the learned Magistrate passed the impugned order granting them bail in the sum of Rs. 50,000/- each, with a further direction that they should attend the police station from 10.00 a.m. to 05.00 p.m. until further orders. 7. Both Mr. Bhonsale, appearing for the MSSIDC, and Mr. Mirza, appearing for the State, have prayed for cancellation of bail granted to Kantilal Manilal Morakhia and Prakash Sevantilal Morakhia. That is the prayer in Criminal Applications Nos. 1648 of 1994 and 1654 of 1994. I will deal with these two applications first, since the third application viz. Criminal Application No. 1646 of 1994 is for anticipatory bail by the other 6 accused. 8. That is the prayer in Criminal Applications Nos. 1648 of 1994 and 1654 of 1994. I will deal with these two applications first, since the third application viz. Criminal Application No. 1646 of 1994 is for anticipatory bail by the other 6 accused. 8. As far as the grant of bail to the two accused Kantilal and Prakash is concerned, it is contended before me that there is a fraud of nearly Rs. 14 crores. The MSSIDC is a Maharashtra Governement Undertaking. Public funds to the tune of Rs. 14 crores are alleged to have been defrauded. The respondents accused have not yet accounted for the imported material which has been disposed of in the open market in contravention of the Terms and Conditions of the licence which was an actual users licence. Independently of the pendency of the civil proceedings in this Court, the conduct of the accused clearly amounts to an offence punishable both under section 420, as also under section 409 I.P.C. read with section 34 and section 120-B of the Indian Penal Code, say Mr. Bhonsale and Mr. Mirza. 9. My attention is invited to the recent decision of the Honble Supreme Court in the case of (Joginder Kumar v. State of U.P. others)1, reported in Judgments Today 1993(4) S.C. 423, wherein certain guidelines have been laid down in the matter of protecting individual rights, liberties and privileges on the one hand, and individual duties, obligations and responsibilities on the other. The law of arrest is one of weighing and balancing the rights, liberties and privileges of the individual and those of individuals collectively; of simply deciding what is wanted and where to put the weight and the emphasis; of deciding which comes first-the criminal or the society; the law violator or the law abider; of meeting the challenge which Mr. Justice Cardozo so forthrightly met when he wrestled with a similar task of balancing individual rights against societys rights and wisely held that the exclusion rule was bad law, that society came first and that the criminal should not go free because the constable blundered. Relying upon these observations, Mr. Bhonsale and Mr. Mirza contended that having regard to the larger interest of the State and the fact that Rs. 14 crores of public funds have been defrauded by the accused, the bail granted to both, Kantilal and Prakash, should be cancelled. 10. Relying upon these observations, Mr. Bhonsale and Mr. Mirza contended that having regard to the larger interest of the State and the fact that Rs. 14 crores of public funds have been defrauded by the accused, the bail granted to both, Kantilal and Prakash, should be cancelled. 10. My attention was then invited to the two judgments of this Court; one in the case of (Santosh Bhaurao Raut)2, reported in 1981 Bombay Cases Reporter, 119 and the other in the case of (Harshad Mehta v. Unionof India and another)3, reported in 1992 Cri.Law Journal, pg. 4032. The case of Santosh Bhaurao Raut, was a case of a gang-rape and the punishment prescribed being severe, it was held that if there was a reasonable ground for believing that the accused had committed the offence punishable with death of imprisonment for life and even if there was discretion given to the Court to impose lesser punishment, bail ought not to have been granted. Reliance is placed on the observations appearing at the end of para 3 of page 121 of the Report in Santosh Rauts case. Similarly, in the case of Harshad Mehta, it was held that in the facts of the said case dealing with economic offences, the interrogation of the accused while he is at liberty will not serve any useful purpose since the acused can then take recourse to stonewalling tactics and keep the game going indefinitely. As against this, if the accused is in custody, the Officers of the Enforcement Directorate will be better able to force him to concentrate on the issues and put pointed questions to him and extract relevant information. It was observed that the technique of interrogation also involves confrontation either with a person or documents and that is possible, and at least more effective, when the person being interrogated is in custody. Liberty of the citizen is desirable but also desirable is the need to detect, investigate and prosecute those guilty of any offence, not excluding economic offences. The observations to this effect are to be found at the end of para 6 at page 4038 of the report in Harshad Mehtas case. 11. As against this, Mr. Liberty of the citizen is desirable but also desirable is the need to detect, investigate and prosecute those guilty of any offence, not excluding economic offences. The observations to this effect are to be found at the end of para 6 at page 4038 of the report in Harshad Mehtas case. 11. As against this, Mr. Vakil, the learned Counsel appearing for the accused, has invited my attention to the fact that I was hearing an application for cancellation of bail and it is one thing for the Court not to grant bail, but it would be quite a different matter to cancel the bail, in the sense of setting aside an order where bail has been granted. As far as the cancellation of bail is concerned, it may arise in two manners : (i) Cancellation of bail, in the sense of challenging the order of grant of bail, which order has been stayed and the accused are still in custody; and (ii) After the accused are released on bail and as a result of the subsequent conduct, they have misused bail, rendering the bail liable to be cancelled. I am dealing with the first category of the cases where the accused are still in jail, pursuant to the order dated June 30, 1994 and what is contended is that the bail ought not to have been granted. Mr. Vakil pointed out that the approach of this Court ought to be different in the matter where it is considering such a case of cancellation of bail. Reliance is placed on the observations of the Supreme Court in (Bhagirathsinh Judeja v. State of Gujarat)4, case, A.I.R. 1984 Supreme Court 372. It has been observed in the said decision in para 6 of the Judgment at pages 373 374 as under : "Very cogent and overwhelming circumstances are necessary for an order seeking cancellation of the bail. And the trend today is towards granting bail because it is now well-settled by a catena of decisions of this Court that the power to grant bail is not to be exercised as if the punishment before trial is being imposed. The only material considerations in such a situation are whether the accused would be readily available for his trial and whether he is likely to abuse the discretion granted in his favour by tampering with evidence. The only material considerations in such a situation are whether the accused would be readily available for his trial and whether he is likely to abuse the discretion granted in his favour by tampering with evidence. The order made by the High Court is conspicuous by its silence on these two relevant considerations. It is for these reasons that we consider in the interest of justice a compelling necessity to interfere with the order made by the High Court". (Emphasis supplied) 12. It is true that in none of the two applications filed by the MSSIDC and the State there is any allegation of either the likelihood of the accused fleeing from justice or their tampering with the prosecution evidence. 13. In the light of the legal position summarised above, it is not necessary to go into the merits of the prosecution case or the defence case at this stage. In fact, Mr.Bhonsale is right in his contention that detailed examination of the evidence and elaborate documentation of the merits of the case should be avoided while passing orders on bail applications. The Supreme Court has sounded this caution in the case of (Niranjan Singh and another v. Prabhakar Rajaram Kharote)5, reported in A.I.R. 1980 S.C. 785. It has been observed in para 3 of the said decision at page 786 of the report as under : "Detailed examination of the evidence and elaborate documentation of the merits should be avoided while passing orders on bail applications. No party should have the impression that his case has been prejudiced. To be satisfied about a prima facie case is needed but it is not the same as an exhaustive exploration of the merits in the order itself". All the learned Counsel have taken me through the entire material on record, which consist of several documents. The transactions are spread over a number of years. However, having regard to the caution sounded by the Supreme Court in Niranjan Singhs case, it would not be proper for me to discuss the merits of the case of either side. Mr. Vakil has further pointed out that the two accused - Kantilal and Prakash are in jail for more than a month now. However, having regard to the caution sounded by the Supreme Court in Niranjan Singhs case, it would not be proper for me to discuss the merits of the case of either side. Mr. Vakil has further pointed out that the two accused - Kantilal and Prakash are in jail for more than a month now. They were arrested on 25th June, 1994 and though bail was granted on the 30th June, 1994, as a result of the stay granted by this Court the accused are still in jail, though they are in judicial custody in the Arthur Road Jail. As against this, Mr. Bhonsale and Mr. Mirza point out that since the principal Investigating Officer M.M. Ansari, Senior Inspector of Police, General Branch, Crime Branch, C.I.D., Bombay, was busy attending to the hearing of the applications in this Court during the last one month, it was not possible to make such progress in the investigation. 14. Having regard to the law laid down by the Supreme Court in the cases mentioned above, while it is true that liberty of the individual citizen is important, the interests of the society at large cannot be ignored. The accused are alleged to have committed a fraud to the tune of Rs. 14 crores. In my view, some more time should be granted to the investigating agency to complete the interrogation of the two accused - Kantilal and Prakash. When I asked Mr. Bhonsale and Mr. Mirza, they indicated that if two weeks time is given for further interrogation, the officer will complete the interrogation to a great extent. 15. Accordingly, Criminal Applications No. 1648 of 1994 and 1654 of 1994 are disposed of in the following manner. The order passed by the learned Magistrate granting bail to the two accused - Kantilal Morakhia and Prakash Morakhia will stand substituted by the following order: (i) Accused No. 1 Kantilal Manilal Morakhia and Accused No. 2 Prakash Shevantilal Morakhia will be released on bail on Friday, the 12th August, 1994 at 6.00 p.m. on their furnishing bond in the sum of Rs. 1,00,000/- (Rs. One Lakh only) each or on their depositing cash to the tune of Rs. 1,00,000/- (Rs. One Lakh only) each or on their depositing cash to the tune of Rs. 1,00,000/- each; (ii) Both the accused are directed to handover their passports, if any, to M.M. Ansari, Senior Inspector of Police, General Branch, Crime Branch, C.I.D., Bombay, within a week from today; (iii) The said two accused will not leave Bombay without obtaining prior written permission from the concerned Magistrate. They shall give advance intimation of atleast 72 hours in writing to the State and the MSSIDC, before making such an application for prior written permission to leave Bombay. (iv) During the period from Friday, the 29th July to Friday, the 12th August, 1994, the accused can be brought to the General Crime Branch, C.I.D., Bombay, at Crawford Market, every day and can be interrogated between 10.00 a.m. and 6.00 p.m. (v) The two accused shall co-operate with the investigation. 16. This order disposes of the two applications for cancellation of bail and a separate order is passed in the third application for grant of bail under section 438 of the Code of Criminal Procedure. 17. Certified copy expedited. Appeal dismissed. *****