IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
ILESH J. VORA, J.
Jayantilal Maganlal Chauhan – Applicant
Versus
State Of Gujarat – Respondent
R/Criminal MISC. Application (For Quashing & Set Aside FIR/Order) No. 16719 Of 2022
Decided On : 12-01-2024
Section 482 - Quashing of Criminal Proceedings - Indian Penal Code, Sections 408, 409, 418, 420, 465, 467, 468, 471, 474, 120B and 114 - The court considered the successive quashing petition and the change in circumstances, and found that the applicant, a Lower Division Clerk, was falsely implicated in the alleged offence. The court held that the essential ingredients of forgery and conspiracy were not established against the applicant, and allowing the proceedings to continue would be an abuse of process of Court. The court invoked its power under Section 482 of Cr.P.C. to quash the FIR and set aside the criminal proceedings against the applicant.
Fact of the Case:
The applicant, a Lower Division Clerk, was accused in a criminal case for offences under various sections of the Indian Penal Code related to misappropriation of funds. The charges were based on allegations that the workers' claims for compensation were forged and misappropriated by the employees of the Office of Official Liquidator and the Textile Labour Association.
Finding of the Court:
The court found that the applicant was falsely implicated in the alleged offence and that the essential ingredients of forgery and conspiracy were not established against the applicant. The court concluded that allowing the proceedings to continue would be an abuse of process of Court.
Issues: The issues before the court were the maintainability of the successive quashing petition and whether the case warranted the invocation of the court's extraordinary jurisdiction to quash the criminal proceedings.
Ratio Decidendi: The court held that the successive quashing petition was maintainable due to the change in circumstances, and that the essential ingredients of forgery and conspiracy were not established against the applicant. The court invoked its power under Section 482 of Cr.P.C. to quash the FIR and set aside the criminal proceedings against the applicant.
Final Decision: The court quashed and set aside the FIR and other consequential proceedings against the applicant, ruling in favor of the applicant.
ORDER :
Rule returnable forthwith. Learned APP waives service of rule for the respondent-State.
1. By way of this application under Section 482 of Cr.P.C., the applicant Jayantilal Chauhan–accused no.17 of Criminal Case No.64341 of 2017, has prayed for quashing of the criminal proceedings.
2. Pursuant to the FIR bearing C.R.No.I-347 of 2011, registered with Navrangpura Police Station for the offence punishable under Sections 408, 409, 418, 420, 465, 467, 468, 471, 474, 120B and 114 of the Indian Penal Code, the investigating officer has filed the chargesheet which has been culminated into aforesaid criminal case. In the said criminal proceedings, 31 persons have been arraigned as accused.
3. The applicant namely Jayantilal Chauhan being a Lower Division Clerk of the office of Official Liquidator has been arraigned as accused no.17 in the alleged offence.
4. Brief facts giving rise to file present quashing application are that, the applicant was initially appointed as Lower Division Clerk and was posted at Mumbai on 15.03.2005 and thereafter, he was transferred to Ahmedabad on 31.05.2006. The respondent no.2-Mansukh Devjibhai Parmar who was exemployee of Calico Printing Ltd., vide its complaint dated 09.12.2011, alleges that, the office bearers of Textile Labour Association in collusion with the employees of the office of Official Liquidator, misappropriated the amount of Rs.1,63,86,800/- payable to workers of closed mill by forging bogus documents. In the FIR, it is alleged that, the Calico Printing Mills Limited was ordered to wound up by the High Court and possession and custody of the mill was taken over by the Official Liquidator in the year of 1998. The Textile Labour Association was working as a supervisory body as it was representative of workers of the closed mill. Pursuant to the rehabilitation scheme introduced by the Central Ministry, the list was prepared by the association so as to extend the financial benefits to the workers. The funds for rehabilitation was deposited. The association sought disbursement of the workmen’s claim for 5777 workers. The High Court in a company petition vide its order dated 10.10.2006 directed to pay Rs.50,000/- as ad-hoc compensation to each worker who were in the list of Textile Labour Association and their claim was audited and certified by M/s. Amaldutt and Associates who had verified and investigated the claim papers submitted by the Association. The payment as directed by the High Court was made by the Office of Official Liquidator by issuing account payee cheques.
In the aforesaid facts, the complainant being a member of the association, alleged in the FIR that, the payment made to 284 workers are bogus and the amount whatever deposited in the bank account of workers having been withdrawn by the members of the association and others by submitting fabricated and forged documents for their financial benefits whereby the employees of the Office of Official Liquidator and the members of the association have committed an offence of forgery, forgery for the purpose of cheating and fraudulently and dishonestly used such documents as genuine so as to gain financial benefit.
5. Pursuant to the aforesaid FIR lodged with Navrangpura Police Station, Ahmedabad, the chargesheet came to be filed for the aforesaid offences by the Economic Cell, CID Crime and same has been culminated into criminal case which is pending before the Additional Chief Metropolitan Magistrate Court at Ahmedabad.
6. This Court has heard learned counsel Mr. Chintan N. Desai for the applicant and Ms. Chetna Shah, learned Additional Public Prosecutor for respondent-State.
7. Mr. Chintan Desai, learned counsel appearing for the applicant has submitted that, the applicant being an employee of the Office of Official Liquidator, has been falsely involved in this offence. That, he was not named in the FIR. That, he was simply a Lower Division Clerk in the office and in discharge of his official duty, he has prepared a cheque as
The court's decision established the principle that the exercise of inherent powers under Sec. 482 of the Code of Criminal Procedure can be used to quash criminal proceedings when the allegations do ....
The court maintained that an FIR must not be quashed at an initial stage unless no prima facie case is established, even if the allegations suggest civil nature.
The court established the principle that continuation of criminal proceedings would amount to an abuse of the process of law when the accused had already been exonerated in the departmental enquiry o....
Section 227 of the Code runs Discharge - If, upon consideration of the record of the case and the documents submitted therewith, and after hearing the submissions of the accused and the prosecution i....
The court affirmed that prima facie evidence of a conspiracy and forgery necessitates proceeding with trial, emphasizing the narrow scope of quashing FIRs under Section 482.
The prosecution failed to establish a prima facie case of forgery or misappropriation against the petitioner, leading to the quashing of all proceedings.
The court ruled that the absence of dishonest intention in the allegations against the petitioners justified quashing the criminal proceedings under Section 482 of Cr.P.C.
Point of law: Criminal cases involving offences which arise from commercial, financial, mercantile, partnership or similar transactions with an essentially civil flavour may in appropriate situations....
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