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IN THE HIGH COURT OF JUDICATURE AT PATNA
Rajeev Ranjan Prasad, J.
Andal Arumugam – Appellant
Vs.
State of Bihar Through Director General Of Police – Respondent
Criminal Writ Jurisdiction Case No. 449, 470 of 2016
Decided On : 23-08-2018
.
FIR Quashed - Civil and Commercial Dispute - Indian Penal Code Sections 406, 420 - Summary of Acts and Sections: Indian Penal Code Sections 406, 420 - Court found that the allegations in the FIR were related to a purely civil and commercial dispute and did not disclose any criminal offense. The court emphasized the need to prevent the abuse of the criminal process for settling civil disputes and quashed the FIR.
Fact of the Case:
The petitioners sought quashing of the FIR, claiming it arose from a civil and commercial dispute related to a works contract. The respondent alleged breach of trust and cheating by the petitioners, invoking bank guarantees illegally.
Finding of the Court:
The court found that the allegations in the FIR were part of a purely civil and commercial dispute and did not constitute a criminal offense. It noted that the respondent's actions were aimed at settling civil claims through criminal prosecution, which was deprecated and discouraged.
Issues: The main issue was whether the FIR disclosed any criminal offense or was related to a purely civil and commercial dispute.
Ratio Decidendi: The court emphasized the need to prevent the abuse of the criminal process for settling civil disputes and cited relevant judgments to support its decision to quash the FIR.
Final Decision: The court quashed the FIR, stating that it was lodged to harass the petitioners and compel them to settle purely civil claims, and did not disclose any criminal offense.
Rajeev Ranjan Prasad, J.
Heard learned counsel for the petitioners, learned senior counsel representing the respondent no.9 as well as learned counsel for the State.
2. Since both the writ applications are arising out of the same First Information Report (in short "F.I.R.") giving rise to Sri Krishnapuri P.S. Case No.263 of 2014 registered for the offence alleged under Sections 406 and 420 of the Indian Penal Code (in short "I.P.C."), with the consent of the parties both the matters have been clubbed together and are being disposed off by this common judgment and order.
3. Petitioners in both the cases have prayed for quashing of the F.I.R. on the ground that a bare reading of the F.I.R. without adding or subtracting anything out of it would show that no case at all is made out for the offences alleged against the petitioners and a purely civil and commercial dispute has been converted in a criminal proceeding only to get rid of the liability arising out of the breach of terms and conditions of the works contract. It is also one of the grounds pleaded on behalf of the petitioners that it is a malafide prosecution of the petitioners who are all working in managerial capacity in the company which had awarded the works contract to a sub-contractor and the respondent no.9 had obtained a part of the works contract as a petty contractor.
4. Before this Court would proceed to consider the submissions advanced on behalf of the petitioners, it would be necessary to take note of the allegations for which the F.I.R. has been lodged.
Allegations in the F.I.R.
5. The respondent no.9 is a Director of one Om Astha Construction Pvt. Ltd. (referred to as the company of the Informant) having its office at Plot No.301, Majestik Vishnu, North S.K. Puri, P.S.-S.K. Puri, District-Patna. He submitted a written complaint to the Officer In-charge, S.K. Puri Police Station, Patna on 24.07.2014. In his written complaint, the respondent no.9 wrote as under:-
"To
The Officer In-Charge
Sri Krishnapuri Police Station, Patna
Subject :- Complaint to lodge First Information
Report against accused:-
(i) Dr. Andal Arumugam, Managing Director, Axon Construction Pvt. Ltd. & M.D. R.K.M. Powergen Pvt. Ltd. having office at First Floor, Western Wing, 14, Dr. Giriappa-Road, T.Nagar, Chenai-600017, (Tamil-Nadu),
(ii) Mr. S. Subburaj, D.G.M. (Civil), Axon Construction Pvt. Ltd. 1 st Floor, Western Wing, 14, Dr. Giriappa Road, T. Nagar, Chenai-600017,
(iii). V.V. Ram (Authorized signatory) AGM (Civil), Axon Construction Pvt. Ltd. 1 st Floor, Western Wingh, 14, Dr. Giriappa Road, T.Nagar, Chenai-600017,
(iv). Mr. Singravel Director, Axon Construction Pvt. Ltd. 1st Floor, Wester Wing 14, Dr. Giriappa Road, T.Nagar, Chenai-600017, (Tamilnadu),
(v). Mr. J. Mohan, Director Axon Construction Pvt. Ltd. First Floor, Western Wing, 14, Dr. Giriappa Road, T.Nagar, Chenai-600017, (Tamil-Nadu),
(vi). Mr. V. Nand Gopal, Executive Director (Finance), Axon construction Pvt. Ltd at First Floor, Western Wingh, 14, Dr. Giriappa Road, T. Nagar Chenai-600017
(vii). Mr. Sarvanan Chief General Managar (Civil) R.K.M. Powergen Pvt. Ltd, at-1st Floor, Western Wingh, 14, Dr. Giriappa Road, T. Nagar, Chenai600017, (Tamil Nadu).
(Viii). Mr. K.M. Natrajan, S/o K.M. Umapathi, R/o Mohalla-Linghyadhi, Sipat Road, Phase-II, Bilaspur, P.S. & District-Bilaspur, (Chhattisgarh) DGM (Civil) Axon Construction Pvt. Ltd. 1st Floor, Western Wingh 14, Dr. Giriappa Road, T. Nagar, Chenai-600017 (Tamilnadu).
FOR COMMITTING CRIMINAL OFFENCES OF BREACH OF TRUST AND CHEATING
SIR,
I Shailendra Pratap s/o late Sita Ram La, Director, OM ASTHA CONSTRUCTION PVT. LTD. and is a registered contractor at-301, Mazestic Vishu, North Sri Krishna Puri, Boring Road Patna, P.S.-SRI KRISHNA PURI Patna, District-Patna, State as follows:-
(i). That I am carrying on my contract-work within & out side Bihar all over India & one of my work-site is at-village-unchhpinda, P.S.-Kharasiya, District-Jajgir-champa, chatisgarh.
(ii). That accused no
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