2009 Supreme(SC) 729

2009(3) Supreme 452
SUPREME COURT OF INDIA
S.B. Sinha and Cyriac Joseph, JJ.
K. Ashoka — Appellant
versus
N.L. Chandrashekar & Ors. — Respondents
Criminal Appeal Nos. 733-734 of 2009
[Arising out of SLP (Crl.) Nos. 7687-7688 of 2007]
Decided on : 15-04-2009

IMPORTANT POINT
High Court in exercise of its inherent jurisdiction under Section 482 of the Code may quash a criminal proceeding inter alia in the event the allegations made in the complaint petition even if they are taken at their face value and accepted in their entirety does not disclose commission of a cognizable offence.

Headnote:Code of Criminal Procedure, 1973 – Section 200 – Indian Penal Code, 1860 – Section 420 read with Section 34 – Complaint petition filed by appellant, director of N.G.E.F. Employees House Building Cooperative Society alleging that respondents office – bearers of society, earned a huge amount for themselves by alloting a site for a sum of Rs.2,40,000/- to one G, a name lender who in turn, sold the said site for a sum of Rs. 28,00,000/- to one H by a deed of sale – However, in the sale deed, consideration amount was shown as Rs.10,20,000/- Magistrate took cognizance of offence and issued summons to respondents – Application filed by respondents under Section 482 of the Code for quashing entire criminal proceedings – Allowed by High Court – Appeal – The allegations made in the complaint petition disclosed commission of a cognizable offence – A conspiracy was said to have been entered into for putting the society and consequentially the members to a great loss – A conspiracy was also said to have been hatched for aforementioned purpose as a result whereof not only an allotment was made in favour of a person who was not entitled thereto but also allotted plot was assigned in favour of a third party for a huge sum – Whether the allegations made in the complaint petition were correct or not had to be considered during trial – High Court in its impugned judgment proceeded on the premise that appellant had no locus standi – It may be true that G and H had not been impleaded as accused but that by itself could not be a ground for quashing the order of cognizance taken against the respondents – If the role played by them in regard to that part of the conspiracy was only to make G a member and got the land allotted in his name by way of camouflage, appellant as a member of society had a locus standi to file a complaint – Again High Court was not correct to opine that no document had been produced by appellant to show that G made an assignment of the land in favour of H – Evidently, no document can be produced for the purpose of showing that the actual amount of consideration for the said transaction amounted to Rs.28,00,000/- although ostensibly the amount of Rs.10,20,000/- had been shown to be amount of consideration in the registered document – Finding of High Court that averments made in complaint petition were imaginary was not based on any material – Even assuming that complainant had a score to settle against the accused, the same by itself could not be a ground to quash the entire criminal proceedings particularly in view of the fact that at least a prima facie case had been established in view of the report of Registrar – Impugned judgment of High Court being unsustainable set aside accordingly – Appeals allowed. (Paras 14 to 19)

       Facts of the Case :

        A Complaint petition was filed by appellant, director of N.G.E.F. Employees House Building Cooperative Society herein in the instant case alleging that respondents office-bearers of society, earned a huge amount for themselves by alloting a site for a sum of Rs.2,40,000/- to one G, a name lender who in turn, sold the said site for a sum of Rs. 28,00,000/- to one H by a deed of sale. However, in the sale deed, consideration amount was shown as Rs.10,20,000/-. Magistrate took cognizance of offence and issued summons to respondents. Application filed by respondents under Section 482 of the Code for quashing entire criminal proceedings was allowed by High Court.

        2. Present appeal has been filed against said order of High Court.

       Findings of the Court :

        The allegations made in the complaint petition disclosed commission of a cognizable offence. A conspiracy was said to have been entered into for putting the society and consequentially the members to a great loss. A conspiracy was also said to have been hatched for aforementioned purpose as a result whereof not only an allotment was made in favour of a person who was not entitled thereto but also allotted plot was assigned in favour of a third party for a huge sum. Whether the allegations made in the complaint petition were correct or not had to be considered during trial.Finding of High Court that averments made in complaint petition were imaginary was not based on any material.Even assuming that complainant had a score to settle against the accused, the same by itself could not be a ground to quash the entire criminal proceedings particularly in view of the fact that at least a prima facie case had been established in view of the report of Registrar. Impugned judgment of High Court being unsustainable was set aside accordingly. Appeals were allowed.

       Result : Appeals allowed.