IMPORTANT POINT
The court established that allegations of non-payment in a business context do not automatically constitute criminal offences without evidence of fraudulent intent.

JUDGMENT :

Bibhas Ranjan De, J.

1. Present application under Section 482 of the Code of Criminal Procedure (for short Cr.P.C.) has been filed by the petitioner herein with a prayer for quashment of the proceedings in connection with G.R. Case No. 1742 of 2022 arising out of Barjora Police Station Case No. 245 of 2022 dated 28.12.2022 under Sections 406/417/420/120B of the Indian Penal Code (for short IPC) presently pending before the Court of Ld. Chief Judicial Magistrate, Bankura (for short C.J.M.).

Factual backdrop:

2. The impugned proceeding was put into motion by a complaint lodged by the opposite party no. 2 herein with the Superintendent of Police (for short SP) Bankura who in turn forwarded the same to the Officer-in-charge (for short O.C.) of Barjora Police Station for enquiry and upon completion of enquiry the SP granted permission to the O.C., Barjora P.S. to register a case. As a sequel, a specific case being no. 245/2022 was registered by the Barjora P.S. on 28.12.2022.

3. The allegations alienated in the said complaint are to the effect that the opposite party no. 2/M/s G.S. Atwal & Company engaged in the business of excavation and mining activities including providing Heavy Earth Moving Machinery for various projects was approached by the petitioner no. 1/EMTA Coal Ltd., a company dealing in mining of coal to perform excavation of coal at Barjora (North) Block OCP. It is further alleged that due to long standing business relationship between petitioner no.1/company and opposite party no. 2/company herein, the complainant firm/opposite party no. 2 sent an offer to the petitioner no. 1/company vide letter dated 07.10.2013. The offer contained the proposal for the work at the mining site. It has been further added that the accused persons in furtherance of their common mala fide intention requested the opposite party no. 2/company to start the mining work. Upon assurance given by the accused persons that the work order confirming the modalities will be provided in due course, the opposite party no. 2/company started making necessary arrangements for excavation.

4. In addition to that the complainant further alleged that from January, 2014 they started their excavation work but they received the work order only on 12.07.2014. In the meantime, the opposite party no. 2/company raised six Running Account bills (for short R.A. bills) but the accused kept on delaying the payment and only made some part payments.

5. It is alleged that a total of 11 R.A. Bills were raised by the opposite party no. 2/company during the work period from November, 2013 – November, 2014 totaling to an amount of Rs. 69,57,58,441/- (Sixty Nine Crores Fifty Seven Lakhs Fifty Eight Thousand Four Hundred and Forty One Rupees) but the petitioner no. 1/company only made a payment of Rs. 42,41,50,000/- (Forty Two Crores Forty One Lakhs Fifty Thousand Rupees). Despite repeated reminders sent to the accused through various platforms on multiple occasions to settle the due amount, the accused kept on delaying in making payments.

6. Thus, the opposite party no. 2/company alleged that the accused persons have wrongfully and dishonestly made unlawful gains by not paying the legitimate dues of the complainant firm. Therefore, the accused persons have committed offences punishable under Sections 406/417/420/120B of the IPC.

Arguments advanced:

7. Ld. Senior Counsel, Mr. Sandipan Ganguly appearing on behalf of the petitioner has mainly canvassed his argument on the following points:

That there was a long standing business relationship between both the companies and owing to this relationship only the complainant firm was entrusted with the excavation work.

Against the work done by the opposite party no. 2/company, they raised 11 R.A. bills totaling to an amount of Rs. 69,57,58,441/-. It is an admitted fact that the petitioner no. 1 made part payments totaling to an amount of Rs. 42,41,50,000/-. The last payment being made on 03.03.2015 of Rs. 50,00,000/-.

After the last dat