IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VAIBHAVI D. NANAVATI, J.
Yashwantsinh Shankarsinh Chauhan – Applicant
Versus
Dilipbhai Piyushbhai Vaghela & 1 Others – Respondents
R/Criminal MISC. Application No. 22493 of 2018 with Criminal MISC. Application (Direction) No. 1 of 2019
Decided On : 30-11-2022
Indian Penal Code, 1860 – Sections 441, 415, 420, 463, 470, 506(2), 120B – Bombay Public Trust Act – Sections 41A, 41D – Offence of cheating – Criminal liability – Offence of Criminal Conspiracy – Criminal Case – Frame charge – Arising for determination – Quashing of complaint – Though no offence as alleged can be said to be made out against present applicant for dispute of purely of civil nature – Dispute has attained finality by order passed by Joint Charity Commissioner in favour of applicant by rejecting application of complainant – Held, Applicants herein were ready and willing to pay 50% of total amount as per agreement between parties for reason that complainant chose to retire as trustee – For foregoing reasons, considering the ratio as referred above and in facts of present case, in view of this Court dispute in question is a civil dispute, applicants herein therefore are not required to be saddled with criminal liability – For foregoing reasons, complaint being Criminal Case pending before Judicial Magistrate First Class, filed by respondent No.1 – Original complainant and consequential orders including order passed by learned Judicial Magistrate First Class are hereby quashed and set aside – Application allowed.
ORDER :
1. Heard Mr. R. D. Dave, the learned advocate appearing for the applicant and Ms. Himali Soni, the learned advocate appearing for Mr. S. B. Thakkar, the learned advocate appearing for the respondent No.1 and Ms. Maithili Mehta, the learned APP appearing for the respondent No.2 – State.
2. By way of present application the applicant herein has prayed for quashing of the complaint being Criminal Case No.53443 of 2015 pending before the learned Judicial Magistrate First Class, Vadodara, filed by the respondent No.1 – original complainant and consequential orders including the order dated 3.11.2018 passed by the learned Judicial Magistrate First Class below the said complaint directing to frame the charge against the applicant for the offences punishable under Sections 441, 415, 420, 463, 470, 506(2) and 120B of the Indian Penal Code. Though no offence as alleged can be said to be made out against the present applicant for the dispute of purely of civil nature. The dispute has attained finality by order passed by the Joint Charity Commissioner in favour of the applicant by rejecting the application of the complainant.
3. Brief facts arising for determination of the present dispute read thus :-
3.1 One Public Charitable Trust known as ‘Narendra Kelavni Trust’ at Vadodara bearing Registration No.E/1807/Vadodara having its office premises at Shiyabaug Mohallo, Vadodara run a primary school known as ‘Shiabaug Primary School’ in a building constructed before 50 years on a land totally admeasuring about 100 yards (1000 Sq.Fts.). The building has ground plus two floors and about 200 students are studying in the said school. The said school is not grant-in-aid school but all the expenses are borne by the Trust from its own resources and donation.
3.2 On 15.9.2007, Dilipkumar P. Vaghela, the complainant and Sangramsinh P. Chauhan, the applicant No.2 who happens to be close relatives entered into an MoU with the old trustees to be included as new trustees and paid Rs.6,40,000 to the old trustees by contributing equal amount.
3.3 On 17.3.2009, Assistant Charity Commissioner approved the Change Report No.401 of 2007 of including the name of the applicant No.2 and respondent No.1 as newly added trustees.
3.4 On 31.1.2011, the complainant the respondent No.1 agreed to retire as trustee upon receiving his share of Rs.3,20,000/- being 50% of the total amount of Rs.6,40,000/- which was paid to the old trustees and signed upon the voucher on receipt of Rs.2,00,000/-.
3.5 On 5.7.2012, the applicant No.2 addressed a letter to collect the remaining amount of Rs.1,20,000/- which was sent by Registered A.D.
3.6 On 23.8.2012, the complainant filed impugned private complaint being Inquiry Case NO.161 of 2012 before the learned Judicial Magistrate First Class, Vadodara wherein the learned Judicial Magistrate First Class by order dated 6.9.2012 directed Police Inspector of Morva Police Station to investigate and submit a report within 30 days. The Morva Police Station filed a report on 1.12.2012 opining that the dispute being a civil dispute was within the jurisdiction of the Charity Commissioner (page-34 and 35).
3.7 On 30.8.2012, the complainant filed an Application No.19 of 2012 under Sections 41A and 41D of the Bombay Public Trust Act for removal of applicant no.2 as trustee and for injunction.
3.8 On 19.10.2012, the Joint Charity Commissioner passed an order rejecting the application with direction about restriction of disposal of Trust property without permission.
3.9 On 28.12.2012, the complainant filed Special Civil Application No.17286 of 2012 challenging the order of the Jt. Charity Commissioner before this Court wherein the said petition came to be withdrawn by the applicant herein to file appropriate application before the Jt. Charity Commissioner.
3.10 On 13.9.2015, report of DCB Police Station, Vadodara came to be filed upon the complaint filed by the complainant on 5.3.2015 opining that the dispute in question is a civil dispute and w
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The duty of trustees to act in accordance with the law, compliance with statutory provisions, and the need for courts to refrain from interfering with ongoing investigations.
Continuing criminal proceedings based on identical allegations that have been previously discharged constitutes an abuse of process of law.
The main legal point established in the judgment is that the Charity Commissioner's decision to grant consent for instituting the civil suit was based on subjective satisfaction and fulfilled all pro....
Criminal proceedings cannot be misused to resolve civil disputes; courts must ensure appropriate legal standards are met.
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