A civil dispute cannot be converted into a criminal dispute with a mala fide intention, and dishonest intention must exist at the inception of a transaction for the offence of cheating.

V.K. Shali, J.

1. This order shall dispose of aforementioned two petitions which are arising from the same matter except that so far as the first petition being Criminal M.C. No.1942 of 2004 is concerned, it is filed by five petitioners while as the second petition being Criminal M.C. No.2005 of 2004 is filed by the sixth accused person in the same FIR in question. The prayer in the first petition is for quashing of the Complaint Case No.507/2001 and the impugned order dated 9.6.2004 passed by the learned Metropolitan Magistrate, New Delhi under Sections 156 (3) Cr.P.C. on the basis of which FIR No.411/2004 dated 24.6.2004, under Sections 381/403/406/408/417/420/427/500 IPC read with Section 120-B IPC was registered at Police Station Badarpur and the consequent proceedings are being taken in pursuance to the same. It may be pertinent here to mention that presently the investigations of the aforesaid FIR are stayed in terms of the order dated 12.2.2004.

2. Briefly stated, the facts of the case are that the respondent No.2 filed a complaint under Sections 381/403/406/408/417/420/427/500 IPC read with Section 120-B IPC before the learned ACMM, Delhi, against the petitioners in both the petitions. Along with the said complaint, an application under Section 156 (3) Cr.P.C. was also filed. It was alleged in the complaint that the complainant, M/s. Usha Drager Pvt. Ltd. was a private limited company, having its registered office at B-II/94, Mohan Co-operative Industrial Estate, Badarpur, New Delhi. It is a Joint Venture Company between Draegerwerk Aktiengesellschaft of Germany and Usha Group of India. It was alleged that the Joint Venture Company is incorporated pursuant to a Joint Venture Agreement dated 9.5.1987 and a foreign collaboration agreement dated 20.2.1990. The newly incorporated company was to engage itself in the business activities of manufacturing and sale of medical equipments and appliances for machines, by developing their own design, drawing, catalogues and brochures as well as to import the machine from Draeger Company, Germany. It is alleged that the company had made a data bank of customers for installations throughout the country in terms of the prospective clients. This entire information was confidential in nature and was in the form of soft and hard copies with the company. It is alleged that the complainant company soon built an enviable reputation and image throughout the country in the field of medical products. It is alleged that the German Directors, namely, Wolfgang Reim, Rainhard Frick, Jens Altmann, Alain Rastouil and Claus Grabowsky, in pursuance to a criminal conspiracy and in a planned way pilfered the abovementioned confidential information with the help of ex-employees. The names of these employees of the Joint Venture Company were A.S. Bhat, CEO, Dinesh Singh, Product Manager, Neelesh Thakur, Sanjay Sinha, P.B.C. Paul and Ravi Sharma, Assistant Manager, Marketing.

3. The learned ACMM on the basis of an application under Section 156 (3) Cr.P.C. directed registration of an FIR by observing that this is a matter which cannot be investigated or where evidence cannot be produced by the complainant himself. Therefore, he gave a direction to the SHO, Police Station Badarpur to register an FIR. As a consequence of this direction, FIR No.411/2004 under various sections, detailed above, was registered on 24.6.2004. It is this FIR and the consequent investigations which have been assailed by the petitioners in two separate petitions and they have prayed for quashing of the complaint as well as the impugned order directing registration of the aforesaid FIR.

4. The main thrust of the petitioners, who are the respondent/accused in the complaint, has been, firstly, that the complaint in question is liable to be quashed on the ground that essentially there is a dispute between the parties which is of civil nature and which is sought to be given a criminal colour, only with a view to bring to bear pressu