Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(AP) 452

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V. SUJATHA, J.
G. Sudhakara Rao - Petitioner
Versus
K.V. Siva Prasad and Others - Respondents
Criminal Petition Nos. 2796, 2803 of 2019
Decided On : 23-09-2024

Advocates Appeared:
For the Petitioner: P. Sai Surya Teja.
For the Respondent: O. Manoher Reddy.

IMPORTANT POINT
Criminal proceedings cannot be maintained if they are found to be an abuse of process, particularly when the complainant has previously lost in civil litigation.

Headnote:
Quash - Criminal Proceedings - Cr.P.C. Section 482 - The court interpreted Section 482 of the Cr.P.C. to quash criminal proceedings that were deemed to be an abuse of process, emphasizing the need for genuine allegations and the avoidance of harassment through criminal complaints.
Fact of the Case:
The defacto complainant alleged that the petitioners, engaged in money lending, extorted large sums and threatened him after he failed to repay loans. He filed complaints leading to criminal cases against them, which the petitioners sought to quash.
Finding of the Court:
The court found that the complaints were filed after the complainant lost in civil litigation, indicating an ulterior motive to harass the petitioners. The allegations did not constitute a valid criminal offense.
Issues: Whether the criminal proceedings against the petitioners should be quashed under Section 482 of the Cr.P.C. due to abuse of process.
Ratio Decidendi: The court held that criminal proceedings should not be used as a tool for harassment, especially when the complainant had previously lost in civil court and failed to provide credible evidence for his claims.
Result: The criminal petitions were allowed, quashing the proceedings in both criminal cases.

ORDER :

V. Sujatha, J.

Criminal Petition No.2796 of 2019 is filed under Section 482 of Criminal Procedure Code (for short “Cr.P.C.”) to quash the proceedings in C.C.No.404 of 2018 on the file of the I Additional Chief Metropolitan Magistrate, Visakhapatnam City, registered for the offences punishable under Sections 420 and 473 read with 511 and 384, 509, 506 of I.P.C.

2. Criminal Petition No.2803 of 2019 is filed under Section 482 of Criminal Procedure Code (for short “Cr.P.C.”) to quash the proceedings in C.C.No.1704 of 2018 on the file of the I Additional Chief Metropolitan Magistrate, Visakhapatnam City, registered for the offences punishable under Sections 420 and 473 read with 511 and 384, 509, 506 read with 34 of Indian Penal Code (for short “I.P.C.”).

3. C.C.No.404 of 2018 was registered against one Gogineni Sudhakar Rao and C.C.No.1704 of 2018 was registered against one Gogineni Sudhakar Rao and his son Subramanya Venkata Appa Rao. Complainant is one and the same in both the cases.

4. On 26.12.2015, defacto complainant lodged a complaint before the Inspector of Police, Gajuwaka Police Station alleging that the petitioner in Criminal Petition No.2796 of 2019 has been running money lending business, have extended loan of Rs.20,00,000/- to the defacto complainant by obtaining promissory notes of a face value of Rs.3,00,000/- dated 27.07.2007, Rs.9,00,000/- dated 28.07.2007, Rs.8,00,000/- dated 30.07.2007. In addition to that he obtained signatures on 2 blank Non Judicial stamp papers of the face value of Rs.100/- in the name GSVA Rao vide No.550 dated. 12.02.2007, stamp paper worth of Rs.100 No.4495 dated 16.08.2005 SI.No.06AAA823040 issued in the name of the accused, 5 blank bond papers with his signatures and thumb impressions, signatures on one bond paper without Revenue stamps, signatures and thumb impressions on 2 blank white papers, 3 blank cheques of ING Vysya Bank vide Cheque No.407022, 407021 and 407020 of his account as surety. Apart from that he mortgaged his property on 01.08.2007 to an extent of Ac.3.43 cents at Maduturu Village of Atchutapuram Mandal in Sy.No.399/2 within the limits of the Sub Registry of Yelamanchili under mortgage deed and term of interest @ Rs.3/- per month. Accordingly, he used to collect Rs.1,20,000/- per month towards interest @ Rs.3/- per month, besides of which he used to take away the wine from his shop on free of cost for his own use. The accused neither issued the receipts nor put signatures for the amount paid towards interest by saying that he would enter the same in his account books and no need to issue the receipts. Accordingly, he paid the amount till February 2014, which is 4 and half times more than the borrowed amount i.e. Rs.90,00,000/-, after that defacto complainant expressed his Inability to pay the remaining amount and requested him to exonerate him. On that, the petitioner herein demanded Rs.40,00,000/- for full and final settlement, further started blackmailing him that he would file false cases against the complainant. Basing the said complaint, the then Inspector of Police, Gajuwaka Police Station has registered a case in Crime No.560 of 2015 under Sections 420, 384, 506 of I.P.C. of Gajuwaka Police Station, and the same was registered as a C.C.No.404 of 2018 on the file of III Additional Chief Metropolitan Magistrate, Gajuwaka. The petitioner filed criminal petition No.2796 of 2019 seeking to quash the C.C.No.404 of 2018.

5. On the same day i.e. on 26.12.2015, defacto complainant lodged another report against the petitioners in Criminal Petition No.2803 of 2019 (petitioner in Criminal Petition No.2796 of 2019 and his son) alleging that the petitioners have been doing unauthorised interest business by lending money to General Public and they lend a loan of Rs.15,00,000/- by obtaining 5 blank cheques of ING Vysya Bank, blank promissory notes containing signatures of the defacto complainant and three blank non judicial stamp papers worth Rs.100/- as a surety. The petitio