Anil Kumar Sinha, J. – The petitioner has filed the present writ application for quashing of the First Information Report, bearing Civil Line Police Station Case No. 226 of 2020, Gaya, registered for the offences punishable under Sections 406, 420 and 34 of the Indian Penal Code and further by way of amendment, the petitioner has prayed for quashing of the order taking cognizance, dated 02.03.2023.

2. The petitioner no. 1 was engaged in the construction business, who entered into a sub-contract agreement with one developer, namely, Akarshan Infra Developers Pvt Ltd, for construction of stilt plus eight floor multi-storied residential quarters for Bokaro Steel Officer's Housing Co-operative Society Limited. The respondent no. 2/informant entered into an investment agreement with the petitioner no. 1 in order to earn profit, according to which respondent no. 2 had to invest a sum of Rupees two crores in two months, but he invested only Rs. Eighty five lakhs and that too in thirteen months. The investment agreement failed, however, the petitioner no. 1in order to return the amount of Rupees eighty five lakhs to respondent no. 2 along with interest at the rate of 9 per cent per annum, amounting to Rs. 1,09,73,000/-, entered into a settlement agreement with respondent no. 2. The amount was to be refunded within a period of fifteen months from the date of settlement agreement, i.e. 24.04.2018. Out of the aforesaid amount of Rs. 1,09,73,000/-, a sum of Rs. 44,00,000/- was refunded by the petitioner no. 1 to respondent no. 2 in two years.

3. The respondent no. 2 lodged the present First Information Report against the petitioners, alleging therein that at the behest/representation of petitioner no. 2, the respondent no. 2 agreed to invest the amount of Rupees two crores for construction of stilt plus eight floor, multi-storied residential quarters, at Bokaro, by petitioner no. 1.

4. The police, after completion of investigation, submitted charge sheet against the petitioners on 31.10.2021 and the learned Judicial Magistrate, 1st Class, Gaya, took cognizance of the offences on 02.03.2023.

5. The case of the petitioners is that the petitioner no. 1 is the proprietor of M/s N.S.S. & Company engaged in the civil construction work within the States of Odisha and Jharkhand.

6. On 01.07.2015, one sub-contract agreement was executed at Bokaro (Jharkhand) between Akarshan Infra Developers Private Limited, a Private Limited Company represented by Mr. Anand Anu, Director, (herein after referred to as ‘the Contractor’) and M/S N.S.S. & Company, (hereinafter referred to as 'Sub-Contractor’), wherein the Contractor was awarded the contract by Bokaro Steel Officer's Housing Cooperative Society Limited for construction of stilt plus eight floor multi-storied residential quarters, at Ranipokhar, Bokaro, Jharkhand to the tune of Rs. 87,00,00,000 (Rupees eighty seven crores) approximately.

7. The petitioner, being the sub-contractor, undertook the construction work of stilt plus eight floor multi-storied residential quarters, for Bokaro Steel Officer's Society Limited at Ranipokhar, Bokaro within a period of 30 months from the date of the agreement.

8. When the aforesaid agreement, dated 01.07.2015, came into knowledge of respondent No. 2, he approached the petitioner no. 1 to invest his Rupees two crores on the basis of profit sharing at the rate of 20 per cent of the entire project in the firm of petitioner no. 1.

9. Accordingly, on 14.06.2016, an investment agreement was executed at Dhanbad (Jharkhand), which was signed between M/s N.S.S. & Company and the respondent No. 2, under which the respondent no. 2 was supposed to invest a sum of Rupees two crores within a period of sixty days from the date of execution of the agreement.

10. Since the respondent no. 2 invested only Rs. 85,00,000/- (Eighty-Five Lakh) only and that too in the span of thirteen months, the terms of the agreement, dated 14.06.2016, failed.

11. The petitioner no. 1 requested the respondent no