Point of law: Criminal proceedings cannot be initiated against a person who is not even a party to the entire transaction.

ORDER :

The petitioner is before this Court calling in question proceedings in Crime No.1 of 2021 registered against the petitioner for offences punishable under Sections 420, 467, 468, 464, 472 and Section 34 of the Indian Penal Code.

2. Adumbrated in brief, the factual background as projected by the petitioner is as follows:

There are three protagonists in the alleged episode of crime 3rd-the 2nd respondent/complainant-representative of the respondent; accused No.2 Nikat Capital, and the petitioner. According to the 2nd respondent who is the Additional Deputy General Manager of the 3rd respondent, the story twined unfolds this way. One Nikat Capital, a company based in the United Kingdom having its office in London was introduced by the petitioner to the complainant through his Director Saimak Vatanabadi. It appears that certain transactions took place between the complainant and Nikat Capital. An international sales contract was executed between Nikat Capital and the 3rd respondent for shipping of 6000 metric tons of Heavy Melting Scrap (HMS) and an amount of 7,35,000 US dollars was transferred from the account of 3rd respondent to Nikat Capital despite the fact there was short supply and was not supplied to the place where it ought to have been supplied.

3. The International Sales Contract provided for arbitration as a dispute resolution mechanism between Nikat Capital and the 3rd respondent. Accordingly, arbitration proceedings were invoked in terms of the arbitration clause. Due to impending transfer of funds, a petition was filed before this Court invoking Section 9 of the Arbitration and Conciliation Act in AP(IM)100001 of 2020 alleging that the company/Nikat Capital had played fraud with the 3rd respondent and sought a restraint order at the hands of this Court directing the State Bank of India not to transfer the sum of 7,70,770 US dollars which was the consideration in the transaction. This Court by order dated 27-11-2020 accepted the case in the petition and passed an interim order of restraint restraining State Bank of India from transferring the amount. It appears, by the time the interim order was passed, the amount had already been transferred to Nikat Capital by the State Bank of India.

4. After the aforesaid proceedings a complaint is registered before the jurisdictional Police by the 2nd respondent against the petitioner and Nikat Capital. Pursuant to the said complaint an FIR is registered arraigning the petitioner as accused No.1 and Nikat Capital as accused No.2 for offences punishable under Sections 420, 467, 468, 464, 472 r/w Section 34 of the IPC. The moment the crime gets registered against the petitioner, the petitioner has knocked the doors of this Court, in the subject writ petition.

5. Heard learned senior counsel Sri C.V.Nagesh representing the petitioner, learned High Court Government Pleader representing respondent No.1 and learned senior counsel Sri Udaya Holla representing the respondents 2 and 3.

Submissions of the petitioner:

6. The learned senior counsel Sri C.V.Nagesh would vehemently argue and contend that the crime registered against the petitioner is, on the face of it, an abuse of the process of law; he would take this Court through the complaint registered maligning the name of the petitioner and laying the entire blame for the transaction on the petitioner, notwithstanding the fact that the petitioner is nowhere in the picture. The petitioner is not a party to the contract entered into between Nikat Capital and the 2nd or the 3rd respondents; the petitioner is not a recipient of any commission/consideration whatsoever in the transaction between the parties; if the transaction between the parties has gone wrong the petitioner cannot be hauled into, by registration of a criminal case against him for the aforesaid offences, as he is completely innocent; it is his submission that no doubt, he has introduced Nikat Capital to the 3rd respondent and at best he can be termed as an intermediary betw