IMPORTANT POINT
The court established that for an FIR to be valid under IPC Sec. 420, it must disclose a prima facie case of cheating, and significant delays in filing may indicate ulterior motives, warranting quashing of the proceedings.

JUDGMENT/ORDER

A.S.GADKARI, J. - By the present Petition, Petitioners Accused in C.R. No.108 of 2014 dtd. 20/3/2014 registered with Ghatkopar Police Station, Mumbai under Sec. 420 read with Sec. 34 of the Indian Penal Code (for short, "IPC") and subsequently registered as CR No.40 of 2014 with EOW, Mumbai have invoked jurisdiction of this Court under Article 226 of the Constitution of India read with Sec. 482 of the Code of Criminal Procedure (for short, "the Cr.P.C.") for quashing of the said crime lodged by the Respondent No.2.

2. Heard Mr. Sanjog Parab, learned senior counsel for the Petitioners and Mr. Yagnik, learned APP for the Respondent No.1-State. Perused entire record produced before us.

3. Record indicates that, in the present Petition, by an Order dtd. 24/8/2016, Rule was granted and by way of interim relief, it was directed that, though the investigation of the crime shall continue, charge-sheet shall not be filed as against the Petitioners without the leave of the Court.

3.1) Record further indicates that, on 24/8/2016 itself, Advocate on record for the Respondent No.2 had waived notice and thus the service of notice upon the Respondent No.2 is completed. Despite service, none appears for the Respondent No.2.

4. Petitioner No.3 is a company wherein the Petitioner Nos.1 and 2 are the Directors.

4.1) Perusal of record indicates that, Mr. Dinesh Parekh was the husband of Respondent No.2. He entered into an Agreement for purchase of a flat bearing No.1302 in the building known as "Indraprastha" in "Neelkanth Valley", Ghatkopar (East), Mumbai (for short, "suit flat"). The said Agreement was executed on 12/9/1990 before the Sub- Registrar, Kurla however, the said Agreement was not registered till 6 th April, 2004. Total cost of consideration of the said suit flat was Rs.9.00 lacs and at the time of execution of said Agreement on 12 th September, 1990, the husband of the Respondent No.2 had paid Rs.7.00 lacs and Rs.2.00 lacs were to be paid as balance amount.

4.2) By a subsequent Agreement dated 6 th October, 1992, the husband of Respondent No.2 agreed to purchase four garages/open parking spaces at the rate of Rs.50, 000.00 per garage/open parking space, totalling to Rs.2.00 lacs.

4.3) The said "Indraprastha" building situated in "Neelkanth Valley", Ghatkopar (East), Mumbai received Occupation Certificate from the Competent Authority on 5/5/1994. The husband of the Respondent No.2 was informed about the same by the Petitioner No.3 by its letter dtd. 7/5/1994 and requested him about the payment of arrears of consideration and other necessary payments as per the various clauses of Agreement dtd. 12/9/1990.

4.4) The Respondent No.3 in due course and as per the terms and conditions of the said Agreement formed a Co-operative Society.

The late husband of Respondent No.2 did not join the said Society as its member, neither contributed the necessary charges for its formation and becoming a member of it.

4.5) Advocates/Solicitors of the Petitioners therefore issued a legal notice dtd. 10/9/1999 to the late husband of the Respondent No.2 calling upon him to pay the balance amount in compliance with the Agreement dtd. 12/9/1990. The compliance was part of obligation as per the terms and conditions of Agreement dated 12 th September, 1990. The late husband of Respondent No.2 was specifically put on notice that, if he fails to comply with the requisition made in the said notice within a period of 15 days from the date of receipt of the said notice, the Petitioners would terminate the said Agreement and forfeit the earnest money.

4.6) Petitioners also sent a legal notice dated 14 th September, 1999 for termination of Agreement with respect to the four garages/open parking spaces.

The said notices were duly received by the late husband of Respondent No.2.

That, in the year 2004, the Government introduced amnesty scheme and therefore the late husband of Respondent No.2 got the said Agreement dtd. 12/9/1990 registered on 6/4/2004.

4.7) The Petit