The court held that mere non-payment of dues in a commercial transaction does not constitute criminal offences under IPC Sections 406 and 420, emphasizing the distinction between civil and criminal liability.

JUDGMENT :

Ajay Kumar Gupta, J.

1. This instant Criminal Revisional application under Section 482 of the Code of Criminal Procedure, 1973 has been filed by the petitioner/accused seeking for quashing of the proceeding being C.N.S. No. 1097 of 2021 corresponding to F. No. CNS/481009/2021 (Shree Shyam Ply & Laminates Vs. Kusum Kanoria), for commission of alleged offence under Sections 406/420 of the Indian Penal Code, 1860 and all orders passed therein including orders dated 03.12.2021 and 03.05.2023 now pending before the Court of the Learned 19th Metropolitan Magistrate, Calcutta.

2. The facts of the case, in nutshell, are that a petition of complaint dated 25.11.2021 along with certain documents was filed before the Court of the Learned Additional Chief Metropolitan Magistrate, 2nd Court, Calcutta seeking prosecution of the petitioner for commission of offences under Sections 406/420 of the Indian Penal Code, 1860. It has been contended by the complainant in the said petition of complaint that the complainant is a supplier of Plywood, Decorative Veneer, Laminates Wood, Highlighter and Allied Products to their customers or retail business personals. They have substantial reputation and goodwill in the market.

3. It has been alleged that the accused/petitioner allegedly went to the complainant’s office and represented herself as a reputed businessman and deals in Plywood, Decorative Veneer, Laminates Wood, Highlighter and Allied Products as a wholesaler. The accused/petitioner represented having good market reputation and very good business circle, had given complainant an impression of a very good business in future. The complainant, believing the reputation of the accused/petitioner, acceded to the proposal of the accused/petitioner and agreed to supply Plywood as per demand of the accused.

4. It was also alleged that believing upon the assurance of the accused/petitioner, the complainant supplied plywood to the accused/petitioner on credit from time to time as per order through courier for a sum of Rs. 5,93,760/-. The complainant further alleged that at the relevant times, the accused personally and also through representative used to collect the plywood against proper bills.

5. It was further alleged that while receiving the plywood, no objection/demur was made regarding the quality and quantity of the plywood was ever raised. However, even after expiry of considerable period of time, the accused/petitioner did not make payment in spite of repeated demand. The accused/petitioner, on different pretext, started asking for time to pay the dues amount. The accused person avoided to meet with the complainant and stopped communicating and also avoided picking phone calls of the complainant.

6. The complainant personally went to the office of the accused/petitioner for asking payment, the accused/petitioner allegedly became furious and started abusing the complainant in filthy and decorative languages and further threatened with dire consequences. The petitioner finally flatly refused to pay the money.

7. The complainant sent a legal notice dated 23.09.2020 asking for payment of the said dues amount. But, even receiving the said notice, the petitioner did not make any payment. It was further alleged that from the very beginning or since inception, the accused/petitioner cheated, misrepresented