Criminal proceedings cannot be used as a shortcut for civil remedies, and the ingredients of the offence of cheating must be prima facie discernible for the continuation of criminal proceedings.

JUDGMENT :

MANISH PITALE, J.

1. Admit. Heard finally with the consent of the learned counsel appearing for the rival parties.

2. The applicant is seeking to invoke inherent power of this Court under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.), for quashing First Information Report (FIR) No. 80/2022, dated 11.02.2022, registered at Police Station Lakadganj, Nagpur, for offence under Section 420 of the Indian Penal Code, 1860 (IPC). The aforesaid FIR stood registered in pursuance of order dated 07.12.2021, passed by the Judicial Magistrate First Class (JMFC) Nagpur, on an application filed by the non-applicant No. 2 under Section 156(3) of the Cr.P.C.

3. The grievance of non-applicant No. 2 was that the applicant, having projected himself as a reputed, trustworthy and creditworthy party, being proprietor of a proprietary concern M/s. S.B. Traders, had approached the non-applicant No. 2, proprietor of M/s. Mittal Energies of India, for purchase of coal. It was agreed between the parties that non-applicant No. 2 would supply coal to the applicant and raise invoices for which the credit period would be 15 days from the date of the invoice. According to the non-applicant No. 2, initially the applicant did make some payments, but thereafter, huge amounts remained to be paid. As a consequence, on 06.03.2019, the non-applicant No. 2, issued a notice to the applicant stating the details of the outstanding amounts and thereupon claimed payment of Rs. 76,82,883/- [Rupees Seventy Six Lakhs Eighty Two Thousand Eight Hundred and Eighty Three only] along with interest from the applicant within 15 days of the said notice.

4. In this backdrop, on 23.07.2020, an agreement was executed between the parties, whereby the applicant specifically agreed to a schedule of payment, so as to discharge the entire outstanding amount payable to the non-applicant No. 2. It was agreed that between 01.08.2020 and 31.01.2021, the applicant would make payments in installments, so that total amount of Rs. 80,00,000/- [Rupees Eighty Lakhs only] would be paid to the non-applicant No. 2. In this agreement, it was specifically agreed by the applicant that the entire amount would have to be paid by 31.01.2021, failing which the non-applicant No. 2, would be free to institute civil and criminal proceedings against the applicant.

5. It was the case of the non-applicant No. 2 that the applicant made payment of only Rs. 5,00,000/- [Rupees Five Lakhs only] as per the said agreement and thereafter failed to pay any further amount. The non-applicant No. 2 was constrained to pursue the matter with the applicant, but when no positive response was forthcoming, the non-applicant No. 2 was constrained to approach the Police Station at Lakadganj on 28.06.2021, for registration of offence of cheating against the applicant. As the Police did not take any action, the non-applicant No. 2 forwarded the complaint to the Commissioner of Police, Nagpur and eventually the non-applicant No. 2 had to approach the JMFC, Nagpur under Section 156(3) of the Cr.P.C. As noted above, on 07.12.2021, the JMFC, Nagpur, allowed the application and directed registration of FIR, upon finding that prima facie cognizable offence was made out against the applicant. In pursuance thereof, FIR dated 11.02.2022, came to be registered against the applicant.

6. The applicant filed the present application wherein on 11.04.2022, this Court issued notice and granted limited interim relief to the effect that the investigation would continue, but charge-sheet was not to be filed without the leave of this Court. Upon service of notice, the non-applicant No. 2 appeared through counsel and the non-applicant No. 1 State was represented by learned Assistant Public Prosecutor (APP).

7. Mr. Sitani, learned counsel for the applicant submitted that in the present case, a purely commercial and civil dispute between the parties was deliberately being given the colour of criminality by the non-applicant No. 2, as an arm t