901 - BA - 740 - 2026.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIRCUIT BENCH AT KOLHAPUR CRIMINAL APPELLATE JURISDICTION CRIMINAL BAIL APPLICATION NO. 740 OF 2026 Pranjal Sharadchandra Phadnis … Applicant Versus. The State of Maharashtra & Anr. … Respondents ------- Mr. Shrikrishna Ganbavale with Mr. Kunal Nalwade and Mr. Shantanu Patil for the Applicant. Ms. S. N. Deshmukh, APP for the State. Mr. Gautam Powar with Mr. Vinay B. Kadam for Respondent No.3. D. S. Walanekar, API, and V. D. Kale, EOW, Kolhapur are present. ------- CORAM : ASHWIN D. BHOBE, J. DATED : SEPTEMBER 16, 2026 P.C.: 1. Heard, Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant, Ms. S. N. Deshmukh, learned APP for the State and Mr. Gautam Powar, learned Advocate for Respondent No. 3. 2. By this Application filed under Section 483 of BNSS 2023, the Applicant seeks Regular Bail in connection with Crime No. 314 of 2026, registered with Hatkanangale Police Station for the offences punishable under Sections 420, 406, 409, 417, 506 read with Section 34 of the Indian Penal Code, 1860. VRJ 1 901 - BA - 740 - 2026.doc 3. Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant, submits that there are six (6) accused in Crime No. 314 of 2026, the Applicant being Accused No. 2. 4. The case of the prosecution is Dr. Santosh Chougule (son of the informant) was running Hrudaya Multi-Speciality Hospital at Herle. For the hospital's expansion and procurement of sophisticated medical equipment, financial assistance was required. Accused No. 6 (Sushant Phadnis) represented that he had the expertise and influence to secure institutional finance and assured that concerns controlled by the accused would undertake the construction, renovation and installation of machinery. Acting on this representation, Kolhapur District Central Co-operative Bank sanctioned a loan of Rs. 7.50 Crores. After disbursing Rs. 5 Crores, the amount was transferred to 'Swayam Sankalp Siddhi' and Rs. 2.5 Crores to Pavostar Synergy Private Limited. According to the prosecution, instead of utilising the said amount for the hospital project, the funds were diverted through various accounts for the benefit of the accused in Crime No. 314 of 2026. Neither the agreed work was completed nor was the amount returned, resulting in the filing of the complaint. 5. The Applicant was arrested on 9th July 2026. The Additional Sessions Judge, Ichalkaranji (“Trial Court”), rejected the Applicant’s Bail Application No. 193 of 2026 on 31st July 2026. VRJ 2 901 - BA - 740 - 2026.doc 6. Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant, submits that the Applicant is suffering from various ailments and underwent two angioplasties between 21st August 2026 and 7th September 2026. He further submits that the Applicant is recuperating. He submits that the subject matter of Crime No. 314 of 2026 is a private commercial dispute between the Applicant and the Respondent No. 3. He submits that the Applicant has returned Rs. 3 Crores 25 Lakhs to Respondent No. 3 as full and final settlement of the dispute. He submits that in view of the amicable resolution of the dispute, the Applicant has filed a Criminal Writ Petition bearing Stamp No. 3531 of 2026 before this Court, seeking, by consent, quashing of the FIR bearing Crime No. 314 of 2026. He submits that the said Petition will be listed before this Court very shortly. He, therefore submits that the Applicant be enlarged on bail. 7. Mr. Gautam Powar, learned Advocate for Respondent No. 3- Complainant, submits that the dispute between the Applicant and Respondent No. 3 pertains to a commercial transaction, i.e. the amounts referred to in the FIR. He submits that the Applicant has paid Rs. 3 Crores 25 Lakhs to Respondent No. 3. He submits that the said amount is towards the full and final settlement of the amount due and payable by the Applicant to Respondent No. 3. He admits that the Applicant has filed a Writ Petition seeking the quashing of the FIR bearing Crime No. VRJ 3 901 - BA - 740 - 2026.doc 314 of 2026 and that Respondent No. 3 has given his no-objection to the quashing of the impugned FIR by consent. 8. Ms. S. N. Deshmukh, learned APP for the State, submits that the Applicant and Respondent No. 3 now claim that the dispute in Crime No. 314 of 2026 is a private commercial dispute between the parties and that they have settled it by paying/receiving the amounts. She submits that the investigating agency has almost completed the investigation. 9. Ms. S. N. Deshmukh, learned APP for the State, submits that the Applicant, as well as Respondent No. 3, have used the police machinery at their whim and fancy, as a recovery proceeding and therefore Applicant and the Respondent No. 3 should be saddled with costs. 10. Perused the record. 11. Prima facie, I find substance in the submissions made by Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant that the subject matter of the crime appears to be a pure commercial dispute relating to payment of an amount – dispute pertaining to providing of services/supply of material. It appears that the Applicant's non- performance of an obligation led Respondent No. 3 to file the criminal proceedings. 12. Vide order dated 21st August 2026 passed by this Court in Interim VRJ 4 901 - BA - 740 - 2026.doc Application No. 461 of 2026, the Applicant was granted interim bail on medical grounds to undergo medical surgery/treatment. As stated by Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant, the Applicant has undergone two angioplasties during the period he was granted interim bail (21st August 2026 up to 7th September 2026). The Applicant has complied with the order dated 21st August 2026 and no extension was sought. Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant, submits that the Applicant is having serious health ailments and requires medical attention in speciality hospitals. 13. Be that as it may, considering the submissions made by Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant and Mr. Gautam S. Powar, learned Advocate for Respondent No. 3, that the parties have amicably resolved the dispute and the amount which was the subject matter of the crime has been paid, the parties having approached this Court by filing an independent Writ Petition for quashing of the impugned FIR by consent, continuation of the Applicant in jail, who is otherwise ailing as submitted by Mr. Shrikrishna Ganbavale, is not warranted. 14. Ms. S. N. Deshmukh, learned APP for the State, is justified in her submission that the police machinery was being used by the Respondent No. 3 and the Applicant as a recovery proceeding to settle a commercial dispute. Faced with the submissions made by Ms. S. N. Deshmukh, VRJ 5 901 - BA - 740 - 2026.doc learned APP for the State, Mr. Shrikrishna Ganbavale, learned Advocate for the Applicant and Mr. Gautam S. Powar, learned Advocate for Respondent No. 3, on instructions from the respective parties, have voluntarily offered to pay an amount of Rs. 1 Lakh each as costs. 15. Mr. Gautam S. Powar, learned Advocate for Respondent No. 3, states that Respondent No. 3 shall deposit Rs. 1 Lakh with the Ad-hoc Committee of the Bombay High Court, Kolhapur Bench Bar Association. Mr Shrikrishna Ganbavale, learned Advocate for the Applicant, states that the Applicant will pay Rs. 1 Lakh to the Public Prosecutor's Office, Kolhapur, for infrastructure purposes. 16. In view of the above, Bail Application No. 740 of 2026 is allowed on the following terms: (a) The Applicant shall be released on bail in Crime No. 314 of 2026, registered with Hatkanangale Police Station, upon furnishing a PR bond of Rs. 50,000/- (Rupees Fifty Thousand only) with one or two sureties in the like amount, to the satisfaction of the Additional Sessions Judge, Ichalkaranji. (b) The Applicant shall not, directly or indirectly, make any inducement, threat or promise to any person acquainted with the facts of the case to dissuade that person from disclosing the facts to the Court or any police officer. Applicant shall not tamper with evidence. VRJ 6 901 - BA - 740 - 2026.doc (c) The Applicant shall provide the Investigating Officer at Hatkanangale Police Station with his residential address and proof thereof, his contact number and must inform the Investigating Officer of any changes to this information from time to time. (d) The Applicant shall report to the Investigating Officer at Hatkanangale Police Station as and when required. 17. Bail Application No.740 of 2026 is disposed of. (ASHWIN D. BHOBE, J.) VRJ 7 VAIBHAV RAMESH JADHAV Digitally signed by VAIBHAV RAMESH JADHAV Date: 2026.09.16 18:24:23 +0530