"Classic example of forum shopping": Allahabad HC rejects anticipatory bail plea in financial fraud case

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Synopsis

Court noted that the bail applicant was used to filing multiple applications and petitions at various forums including the high court

 

The Allahabad High Court, on November 1, 2023, made significant observations against a practice referred to as "forum shopping" and said that filing an anticipatory bail application while a regular bail application is pending is an abuse of the court's processes. 

The bench of Justice Krishan Pahal denied an anticipatory bail application filed by one Banti Sharma @Brahm Prakash Sharma and his co-accused in a case related to financial irregularities under Sections 420 and 406 of the Indian Penal Code (IPC) concerning funds deposited as policy bonds in a company.

The prosecution alleged that Sharma, in a supervisory role within the company, was involved in the misappropriation of funds deposited by multiple individuals. In contrast, the defense vehemently denied these allegations, claiming that Sharma was falsely implicated in the case.

During the course of proceedings before the court, it emerged that Sharma had submitted multiple petitions to the high court, including a challenge to a charge sheet and a discharge application. Additionally, the court noted that Sharma had a regular bail application pending before the lower court.

Justice Pahal commented, "Filing of an anticipatory bail application, while there being a regular bail application pending, is misuse of process of Court. The applicant is used to filing multiple applications and petitions at various forums including the High Court. These acts are a classic example of forum shopping and it cannot be permitted to keep on going so eternally."

The court referred to the case of Shivam vs. State of U.P. and Another (2021), emphasizing the necessity for parties to disclose all legal proceedings related to the subject matter of dispute to avoid contradictory orders from different judicial forums.

Justice Pahal held, "After taking into consideration the rival contentions, the fact that applicant had filed several petitions before this Court thrice and failed and 5 there is pending regular bail application of the applicant before the court concerned and coupled with the said arguments tendered at Bar in the light of the judgment in Shivam (supra), I do not find it a fit case for grant of anticipatory bail to the applicant".

Court concluded that the applicant's actions amounted to forum shopping and denied the plea for anticipatory bail.

Case Name: Banti Sharma Alias Brahm Prakash Sharma Vs State Of UP