The appropriate remedy for non-registration of FIR is to take recourse under other provisions of the CrPC, not seeking relief under Article 226.

ORDER :

This writ petition, under Article 226 of the Constitution of India, is filed to issue writ of mandamus declaring the inaction of the respondent police on the petitioner’s complaint, dated 28.07.2022, in initiating action to prosecute the respondents No.4 & 8 to 12 in playing fraud against the petitioner as illegal, arbitrary and violation of principles of natural justice and consequently to direct the respondent/police to prosecute respondents No.4 and 8 to 12.

2. Heard Sri Prasad Babu, the learned counsel representing Sri Md. Saleem Pasha, the learned counsel for the petitioner, the learned Government Pleader for Home appearing for respondents 1 to3 and Sri S. Satyanarayana Moorthy, the learned standing counsel for the respondents No.4 & 10 to 12.

3. The case of the petitioner is briefly as follows:

The writ petitioner herein is a consultant Civil Engineer and Panel Valuer for nationalized banks & NBFCs in Vijayawada. The 10th respondent, the then Deputy Manager, SBI, SME branch, Mangalagiri introduced the 9th respondent and requested to conduct valuation of properties offered by him to obtain credit advances for the 8th respondent firm at various places in and around Guntur. However, the said properties became unfit legally to offer as securities by the end of March-April, 2018. In those circumstances, the 9th respondent requested the petitioner to offer his properties, worth about Rs.2.27 crores as security and entered into an agreement of sale with a condition to execute mortgage deed, dated 01.08.2018 in favour of the 8th respondent for securing term loan of Rs.3.25 Crores and cash credit limit of Rs.1.00 crore by him on 01.08.2018. It is further agreed by the 9th respondent to pay 50% of the sale consideration, i.e., Rs.1.135 crores after 10 days of execution of mortgage at bank and the balance 50% of sale consideration agreed to be paid within five months from 01.08.2018. Thereafter, the petitioner was compelled to become a partner of the 8th respondent. The respondents No.4, 10 to 12 made his wife to offer her securities to be mortgaged and obtained her signatures. Thus, the total loss caused by the respondents No.4, 10 to 12 in collusion with each other to benefit the 9th respondent is about Rs.4.3725 crores. In spite of repeated requests and demands, respondents No.4, 10 to 12 being officials of the bank had failed to discharge their duties and fraudulently helped the 9th respondent and his firm. In those circumstances, the petitioner got issued a notice, dated 25.05.2022, through his counsel demanding compensation and to release the properties mortgaged. The petitioner further lodged a complaint, dated 28.07.2022, with the 3rd respondent police. The main grievance of the petitioner is regarding the inaction of the police on his complaint.

4. The learned counsel for the petitioner submitted that the Constitution Bench of the Supreme Court in Lalita Kumari Vs. Government of Uttar Pradesh and others : (2014) 2 SCC 1, issued directions at para No.120 of the said decision that if the information discloses commission of a cognizable offence, FIR must be registered, and if the police officer does not register FIR, action must be taken against the erring officer, and it is mandatory for the police officer to register the FIR on a complaint disclosing commission of a cognizable offence, but, in the present case, since the respondents/ police failed to do so, this Court is empowered to issue writ of mandamus. He further submitted that recently a Division Bench of the Supreme Court, relying on the above decision of the Constitution Bench, in Sindhu Janak Nagargoje Vs. The State of Maharashtra & others : 2023 Live Law (SC) 639, directed the concerned respondents to proceed further in the complaints in accordance with law since the complaint therein discloses commission of cognizable offence and the names of the offenders. It is also submitted by him that fraud vitiates all judicial acts and placed reliance on the decisi