2010 (6) Supreme 33
SUPREME COURT OF INDIA
P. Sathasivam and Anil R. Dave, JJ.
Srinivas Gundluri & Ors. — Appellants
versus
M/s SEPCO Electric Power Construction Corporation & Ors. — Respondents
Criminal Appeal No. 1377 of 2010
(Arising out of S.L.P. (Crl.) No. 3267 of 2010)
with
Criminal Appeal No. 1378 of 2010
(Arising out of S.L.P.(Crl.) No. 5095 of 2010)
Decided on : 30-7-2010
(1976) 3 SCC 252; (1977) 4 SCC 459 – Relied upon
(1988) 1 SCC 692 – Distinguished
(b) Code of Criminal Procedure, 1973 – Section 156(3) – Complaint prima facie disclosing cognizable offences – Magistrate rightly asked for registering FIR, conducting investigation and submitting report. (Para 15)
Facts of the case:
1.M/s SEPCO Electric Power Construction Corporation awarded constructional work to M/s SSVG Engineering Projects Private Limited. The contract value of the work was Rs. 42,92,19,800/- and the work was to be completed within a period of two months.
2.SSVG wrote a letter on 28.06.2009 to the Dy. General Manager, SEPCO complaining that despite repeated requests, SEPCO has not handed over the site for commencing the work and requested to hand over the site so as to enable it to complete the work within two months.
3.SEPCO vide letter dated 29.06.2009 cancelled the work order dated 16.06.2009 on the ground that the company has failed to mobilize requisite manpower, machinery and equipment by that date but diverted the amount for some other purpose than the one as agreed, hence demanded refund of advance money.
4.On 03.07.2009, Union Bank of India apprised the SSVG that the Police has requested it to freeze their current account with immediate effect on the complaint of SEPCO.
5.The Managing Director and Principal Officer, Director and Promoter as well as the Company – SSVG Engineering Projects Pvt. Ltd. filed Writ Petition before the High Court of Chhattisgarh praying for quashing and setting aside the order dated 04.07.2009 passed by the Chief Judicial Magistrate, Class I, Korba and the proceedings drawn by the Magistrate on the complaint of SEPCO.
6.The writ petition was dismissed.
Finding of the Court:
Here is no infirmity in the impugned order.
Result : Appeals dismissed.
JUDGMENT
P. Sathasivam, J. —
1)Leave granted.
2)The appeal arising out of S.L.P.(Crl.) No. 3267 of 2010 is directed against the final judgment dated 01.04.2010 passed by the High Court of Chhattisgarh at Bilaspur in W.A. No. 281 of 2009 whereby the High Court dismissed the appeal filed by the appellants herein and the appeal arising out of S.L.P.(Crl.) No. 5095 of 2010 is preferred against the interim order dated 27.04.2010 passed by the High Court of Judicature of Andhra Pradesh at Hyderabad in Crl. R.C. M.P. No. 1307 of 2010 in Crl. R.C. No. 893 of 2010 staying the order dated 22.04.2010 passed by the Chief Metropolitan Magistrate, Hyderabad rejecting the application for extension of transit bail and also recording of the fact that fraud has been played upon the Court and resultantly, non-bailable warrant was issued against respondent No.1 in this appeal for his arrest and production before JMFC, Korba, Chhattisgrarh.
3)The facts leading to the filing of these two appeals are:
a) M/s SEPCO Electric Power Construction Corporation (in short “SEPCO”) was engaged in erection of power plant at village Nariyara in Akaltara District Janjgir-Champa. SEPCO awarded constructional work to M/s SSVG Engineering Projects Private Limited (in short “SSVG”) the appellants in appeal arising out of SLP (Crl.) No. 3267 of 2010 as per the terms and conditions of the contract settled between SEPCO and SSVG. The contract value of the work was Rs. 42,92,19,800/- and the work was to be completed within a period of two months. As per the terms, 50% of the value of the contract was to be paid in advance. SSVG was required to go ahead with the project work immediately. The work order was issued by SEPCO on 16.06.2009. A cheque for a sum of Rs. 20,97,46,840/- towards payment of 50% advance was issued to SSVG on 25.06.2009. SSVG wrote a letter on 28.06.2009 to the Dy. General Manager, SEPCO complaining that despite repeated requests, SEPCO has not handed over the site for commencing the work and requested to hand over the site so as to enable it to complete the work within two months. However, SEPCO vide letter dated 29.06.2009 cancelled the work order dated 16.06.2009 on the ground that the company has failed to mobilize requisite manpower, machinery and equipment by that date but diverted the amount for some other purpose than the one as agreed, hence demanded refund of advance money.
b) On 03.07.2009, SSVG received a letter from the Union Bank of India whereby it was apprised that the Bank has received a letter on 02.07.2009 from the Police Station Balco Nagar requesting to freeze their current account with immediate effect on the complaint of SEPCO. Subsequently, SSVG came to know that on 04.07.2009, SEPCO has filed a criminal complaint against them in the Court of Chief Judicial Magistrate, Class I Korba. The Chief Judicial Magistrate, by his order dated 04.07.2009, allowed the application of SEPCO filed under Section 156 (3) of the Code of Criminal Procedure (hereinafter referred to as ‘the Code’) and forwarded the original complaint along with documents to the concerned Station House Officer (SHO) directing him to register FIR, after due enquiry, and to submit a chargesheet after investigation. Mr. Srinivas Gundluri, Managing Director & Principal Officer, SSVG also received a memo from Police Station, Balco Nagar, for recording his statement. In this background, the Managing Director and Principal Officer, Director and Promoter as well as the Company – SSVG Engineering Projects Pvt. Ltd. filed Writ Petition No. 3647 of 2009 before the High Court of Chhattisgarh praying for quashing and setting aside the order dated 04.07.2009 passed by the Chief Judicial Magistrate, Class I, Korba and the proceedings drawn by the Magistrate on the complaint of SEPCO. They also prayed for issuance of writ of prohibition in order to prohibit further proceedings pending in the Court of Magistrate, Class I, Korba in connection with the complaint lodged by SEPCO and quashing
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