The court held that disputed facts regarding the nature of transactions and intent behind non-payment necessitate a full trial, preventing the quashing of the FIR.

JUDGMENT :

(ROHIT W. JOSHI, J.) :

1. Respondent No.2 in the present application has lodged FIR against the applicants with Police Station Vedantnagar, Aurangabad City on 18.08.2021, vide FIR No.229/2021, for the offences punishable under Sections 406, 420 read with Section 34 of the Indian Penal Code and Sections 3 and 4 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 (Hereinafter referred to as “IPC” and “MPID” respectively for brevity).

2. Respondent No.2 – Informant has lodged the FIR on behalf of two business entities i.e. Kisan Agro Industries and Anand Cotgin Pvt. Ltd. He states that the partners of Kisan Agro Industries, namely, Annasaheb Mane Patil and Sharad Gandhi have authorized him to look after the affairs of the said firm, vide registered power of attorney dated 05.06.2008. He further states that he and his son are Directors of the other entity Anand Cotgin Pvt. Ltd. The aforesaid two business entities are engaged in business of sale and purchase of cotton yarn. Respondent No.2 has stated that applicant no.1 had approached the aforesaid two business entities through a broker from Indore named Arpit Jain for purchasing cotton yarn. Applicant No.1 had a meeting with informant in the office of Anand Cotgin Pvt. Ltd. where discussions and deliberations were held with respect to quality and rate of yarn. He states that applicant no.1 had agreed to make payment within a period of 8 days from the delivery of consignment. He then states that M.C.G. Spinners, partnership firm of the applicants had purchased cotton yarn from the aforesaid two business undertakings, the details whereof are as under :-

Kisan Agro to M.C.G. Spinners :-

Anand Cotgin to M.C.G. Spinners :-

3. Out of seven consignments, payments have been received for four consignments only. A sum of Rs.46,68,185/- is not paid to Kisan Agro Industries for two consignments of cotton yarn and a sum of Rs.27,97,668/- is not paid to Kisan Agro Industries for one consignment. Respondent No.2 states that applicant no.1 had expressed inability to make immediate payment of the outstanding amount and requested for some time to make a payment stating that some property was put up for sale and accordingly, the amount will be arranged. He further states that applicant nos.1 and 2 had discussion with Annasaheb Mane, partner of Kisan Agro Industries and himself with respect to repayment of amount. He states that applicant nos.1 and 2 suggested that outstanding amount should be treated as a deposit made by aforesaid two undertakings with M.C.G. Spinners, firm of the applicants, and that, the said amount would be refunded within a period of two months with interest at the rate of 2% p.a. Accordingly, two documents titled as “Thevpatra/Deposit Receipt” dated 16.03.2021 were executed by applicant nos.1 and 2 as partners of M.C.G. Spinners, are in favour of partners of Kisan Agro Industries namely Annasaheb Mane Patil and Sharad Gandhi and another in favour of respondent no.2 – Suresh Gandhi, Director of Anand Cotgin Pvt. Ltd. The cheques issued by the applicants for payment as per terms of deposit receipts were dishonoured. In these circumstances, the aforesaid FIR has been lodged for the offence punishable under Sections 406, 420 read with Section 34 of the IPC and under Sections 3 and 4 of the MPID.

4. Based on the said FIR, respondent no.1 started investigation and after completion of the same filed Final Report/Charge-Sheet under Section 173 of the Code of Criminal