High Court Of Delhi
Pradeep Nandrajog
ROSHAL LAL ARORA - Appellant
Versus
STATE - Respondents
Crl. M. C. 1200 Of 2003
Decided On : 10/01/2007
FIR Quashing - Criminal Breach of Trust - Section 406 IPC - Section 405 IPC
Fact of the Case:
Partnership dispute over misappropriation of funds by Roshan Lal Arora, leading to a FIR under Section 406 IPC. Roshan Lal Arora claimed authorization to use funds for partnership work.
Finding of the Court:
The court found that the letter dated 17. 8. 1992 authorized Roshan Lal Arora to receive payments for the partnership work, negating the entrustment of property. The FIR was deemed an abuse of the process of law and was quashed.
Issues: Dispute over whether Roshan Lal Arora committed criminal breach of trust by misappropriating funds meant for partnership work.
Ratio Decidendi: The court relied on the letter dated 17. 8. 1992, which authorized Roshan Lal Arora to receive payments for the partnership work, thereby negating the essential elements of criminal breach of trust.
Final Decision: The FIR and all consequential proceedings were quashed by the court.
( 1 ) ROSHAN Lal Arora prays that FIR No. 286/95 under Section 406 IPC ps Greater Kailash Part-I and proceedings pending pursuant thereto be quashed.
( 2 ) RELEVANT facts are that Roshan Lal Arora and the complainant, inder Wadhwa, entered into a partnership vide deed of partnership dated 22. 1. 1990 with the object of executing civil works on contract and project basis. The partnership was to carry on business under the name and style m/s. Oam International. As per the partnership deed the profits and losses of the firm were to be shared equally by the partners who were equally obliged to contribute equally towards the capital of the firm.
( 3 ) GRAVEMENT of the allegation against Roshan Lal Arora in the FIR is that pertaining to a contract taken by the firm from TCIL, vide cheque no. 50411 dated 8. 11. 1994 in sum of Rs. 3,45,268/- issued by TCIL, Roshan Lal arora had opened an account with Central Bank of India showing himself as the sole proprietor of M/s. Oam International. The cheque in question was credited in the said account and the money had been misappropriated by Roshan Lal Arora. It was stated in the FIR that the partnership firm was maintaining a current account No. 2035 with Punjab National Bank, Nehru Place and it was the duty of roshan Lal Arora to have got credited the cheque in said account.
( 4 ) UNDISPUTED position is that on 20. 2. 1995 Roshan Lal Arora had expressed his desire to Inder Wadhwa for dissolving the firm. It has therefore to be noted that the FIR in question was registered after some disputes had arisen between the two partners.
( 5 ) IT is urged by learned counsel for Roshal Lal Arora that M/s. Oam international was unable to fulfill its contractual obligations and that on 17. 8. 1992, Inder Wadhwa addressed a letter to Roshan Lal Arora as under:-
"mr. R. L. Arora project Development Associates, 533/ Pocket B, Sarita Vihar, new Delhi. Sub : Completion of balance work of cable duct. Dear Sir, please refer to our discussions regarding completion of balance work of cable ducting of AB-1/90. We have mutually agreed that you will complete all the balance work with your labour and materials, and also made payments to the supplier, labour contractor, etc. Accordingly you will be entitled to receive payments for this work and be responsible for the discharging the liabilities of this work. All liabilities for material and labour on account of work already completed will be discharged by Oam International you will be making all efforts to complete the work by 31. 12. 1992. "
( 6 ) IT is urged that pursuant to the letter dated 17. 8. 1992, Roshan lal Arora became liable to complete the balance work awarded to the partnership firm by TCIL. As per the said letter he was entitled to receive payment for the work and for said reason Roshan Lal Arora opened a separate account and credited the cheque received from TCIL. With reference to the statement of the account opened by Roshan Lal Arora with Central Bank of India in which Rs. 3,45,268/- was credited, it was pointed out that money was withdrawn in parts over a considerable period of time and utilized for execution of the works awarded by tcil. It has lastly been urged that authenticity of the letter dated 17. 8. 1992 has been verified as true by the investigating officer as recorded in the order dated 18. 9. 1995 when Roshan Lal Arora was granted anticipatory bail by this court.
( 7 ) QUESTION which arises for consideration is, whether Roshan Lal arora has committed criminal breach of trust. This in turn takes me into the issue, whether the cheque in question in sum of Rs. 3,45,268/- received by Roshan lal Arora from TCIL was required to be deposited in the account of the partnership firm with Punjab National Bank or not.
( 8 ) IT is true that every partner of a firm has a fiduciary obligation to render true and faithful accounts to the other partners and is also obliged to use the funds and properties of the partnership for
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