The central legal point established in the judgment is that criminal proceedings can be deemed an abuse of process and maliciously instituted if they are filed with an ulterior motive for private and personal grudge, without meeting the requirements of the relevant legal provisions.

JUDGMENT :

S.S. Shinde, J.

This writ petition was heard at admission stage by this Court (Coram: J.A. Patil, J.) on 30th June 2003 and this Court was pleased to issue Rule and ad-interim stay in terms of prayer clause (b). It appears that, on the said date none appeared for Respondent. The said ad-interim relief granted is being continued till date.

2. Background facts for filing the petition are as under:-

The Petitioners herein are arraigned as Accused No. 3 to 22 respectively in L.A.C. No. 1705 of 1999 which was registered at the instance of one Mr. Prince Augustine, through the Tilak Nagar Police Station for the alleged offences punishable under the provisions of Sections 3 and 4 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 read with Section 34 of Indian Penal Code (hereinafter for sake of brevity referred to as "said Act").

3. It is the case of the Petitioners that, the investigation of the said crime is completed and the Police have filed the charge-sheet before the learned Metropolitan Magistrate 34th Court, Vikhroli as far back in 2000 and the case is numbered as C.C. No. 333/P/2000. The prosecution case in brief as reflected in the charge-sheet, more particularly in the statement of Original Complainant Mr. Prince Augustine is that the complainant, Prince Augustine has been residing in Flat No. 3, Seagul Agnello Co-operative Housing Society, Pestom Sagar, Chembur, Mumbai, and that Flat No. 4 was purchased in his name from one Mr. Kuttan Pillai on 8.9.1999 for a consideration of Rs. 12 lakhs. The complainant was working with Castrol India Limited as a Senior Manager and that he took a loan from the company and purchased the said flat. The said Mr. Kuttan Pillai and his son, Mr. Jayakumar Pillai i.e. the Accused No. 1 and 2 were residing in his neighborhood and therefore, he knew both of them.

4. On 11.12.1999, at 11.00 pm, the complainant, Prince Augustine was arrested by the Tilak Nagar Police in connection with C.R. No. 1 of 1998 for the offences punishable under Sections 420, 421, 406 r/w. 34 of the Indian Penal Code. On 12.12.1999, the complainant was produced before the Holiday Court at Bhoiwada, Dadar where he was released on bail in the sum of Rs. 1 lakh cash. It is further the case of the Petitioner that, the complainant obtained a copy of complete set of papers filed against him through his advocate and that he came to know from his Advocate that, after his purchase of the Flat No. 4, for Rs. 12 lakhs the aforesaid Kuttan Pillai alongwith his son were absconding. The complainant did not know as to where the said Kuttan Pillai and his son were absconding and therefore the Police, in that C.R. arrested the complainant. In the aforesaid C.R. No. 1 of 1998, one Mario Fortes is the complainant and there were 19 witnesses. The complainant came to know that Kuttan Pillai and his son were running a scheme in their flat. In the said scheme the Petitioners herein have allegedly participated and invested money. They also allegedly prepared affidavit in the Court.

5. It is further the case of the Petitioner that, Mr. Kuttan Pillai and Mr. Jay Kumar Pillai by becoming a member in the aforesaid financial scheme have invested money with the expectation of making profits for them. On receipt of the complaint from Prince Augustine, the offence came to be registered being LAC No. 1705 of 1999 under the provisions of Section 3 of the said Act read with Section 34 of Indian Penal Code., and on completion of the investigation the charge sheets came to be filed some time in the year 2000. The matter is not pending before the learned Metropolitan Magistrate 34th Court at Vikroli, Mumbai, and it is at the stage of framing of charge.

6. As stated in the petition the circumstances leading for lodging LAC No. 1705 of 1999 are as under:-

The original Accused Nos. 1- Kuttan Pillai and Accused No. 2- Jaikumar Pillai were conducting a conventional chit fund at the aforesaid Flat No. 4, Seagul Agnello Co-operative Housing Society,