Civil disputes cannot be transformed into criminal proceedings, and attempts to misappropriate criminal law for debt recovery are deemed an abuse of process.

JUDGMENT :

SANDEEP MEHTA, J.

1. Heard.

2. Leave granted.

3. The appellants in the above captioned appeals are arraigned as accused in the FIR No. 443 of 2015¹ [Hereinafter referred to as “impugned-FIR”] registered with MIDC Walunj Police Station, Aurangabad for offences punishable under Sections 406 , 420, 467, 468, 471 and 34 of the INDIAN PENAL CODE , 1860.² [Hereinafter referred to as “IPC”]

4. Since both the appeals arise out of a common order dated 8th October, 2018, passed by the Division Bench of the High Court of Bombay Appellate Side, at Aurangabad³ [Hereinafter referred to as “High Court”] dismissing Criminal Application No. 6539 of 2015, filed by the appellants, and Criminal Writ Petition No. 1438 of 2016, filed by Jaywant Mallya (accused No. 6 in impugned-FIR), both have been heard analogously and are being decided together by this common order.

5. The complainant (respondent No. 2 in Criminal Appeal @ SLP (Crl.) No. 9857 of 2018) has filed a counter affidavit. Respondent No. 1-State of Maharashtra has not filed any counter affidavit despite repeated opportunities. However, Mr. Aaditya Aniruddha Pande, learned standing counsel appearing for the State of Maharashtra, has filed a copy of a report under Section 173 of Code of Criminal Procedure, 1973⁴ [Hereinafter referred to as “Cr.P.C.”] in compliance of an order dated 23rd April, 2025 passed by this Court.

6. Facts in a nutshell, relevant and essential for disposal of the appeals, are noted herein-below:

6.1. Ashok Karbhari Shingare Patil⁵ [Hereinafter referred to as “complainant”] lodged the impugned-FIR at the MIDC Walunj Police Station, Aurangabad alleging, inter alia, that he was a professional Contractor involved in variety of construction works.

6.2 MIDC, Walunj, Aurangabad issued a tender in the year 2009-2010, for construction of a sewerage water filter plant under built, operate and transfer basis (B.O.T.) at Plot No. 02, O.S. 7(P), Maharashtra State Industrial Corporation⁶ [For short “MIDC”] with the pre-condition that the selected building company would be required to spend equally for this project. Upon completion of the work by the company under the contract, a sum of Rs. 27,00,000/- was to be passed on per month on B.O.T. basis to the company.

6.3. The tender submitted by Bharat Udyog Limited⁷ [Hereinafter referred to as ‘BUL’] (the successful bidder), a company registered with the MIDC, was accepted and the project work was awarded to it for the next 20 years commencing from 25th November, 2021. The possession of the property was transferred to BUL. For undertaking the construction works, BUL assigned a sub-contract to S.W.D. Infrastructure Pvt. Ltd. Belapur, C.B.D. Navi Mumbai⁸ [Hereinafter referred to as the ‘SWD Infra’] in January, 2012. BUL gave certain orders to SWD Infra on 1st March, 2012 against which a sum of Rs. 1,35,62,872/- remained outstanding. SWD Infra further assigned a sub-contract to the complainant’s company by name of Sai Group and an agreement was entered into in this regard. The complainant claimed that the payment for the work under the sub-contract of SWD Infra was agreed to be made to the complainant directly, under the instructions given by the Directors of BUL (appellants herein) to SWD Infra.

6.4. As per the complainant, for the work done between 10th October, 2013 to 5th May, 2014, a sum of Rs. 5,13,78,485.50/- remained outstanding to be paid to his company (Sai Group) and that he had received only an amount of Rs. 3,68,15,612/-. A sum of Rs. 2,52,12,801/- w