Inherent powers under Section 482 of the Code of Criminal Procedure are to be invoked for quashing criminal proceedings when allegations are found to be an abuse of the process of law, particularly in disputes of a civil or administrative nature initiated with mala fide intent.

JUDGMENT :

M. K. THAKKER, J.

1 The present application is filed under Section 482 of the Code of Criminal Procedure, 1973, seeking quashment of the FIR being I-C.R. No.43 of 2013 registered with Surendranagar City Police Station, District Surendranagar, for the offences punishable under Sections 406, 409, 477A and 114 of the Indian Penal Code.

2 The facts of the case, in a nutshell, are as follows:

2.1 The complainant, namely Mitalbhai Bharatbhai Kothari, lodged a complaint inter alia alleging that the accused persons, who were at the relevant point of time serving as trustees and office bearers of Satavdhani Gurudev Shri Poonamchandji Maharaj Smarak Trust, Surendranagar, in furtherance of their common intention and pursuant to a pre-conceived plan, committed offences of criminal breach of trust, misappropriation of trust funds, and other allied offences. It is the case of the complainant that an amount of Rs. 6,29,595/-, which had originally been received by the said trust by way of donation from Mahavirnagar Sthanakvasi Jain Sangh, Mumbai, was required to be retained and utilized strictly for the objects of the trust. However, the accused persons, with a dishonest intention to misappropriate the said amount, deliberately and falsely reflected the same in the books of accounts as a loan transaction. It is alleged that such false accounting entries were made with a view to create a facade of legitimacy and to facilitate diversion of the trust funds.

2.2 The complainant has further alleged that, in order to give effect to such design, the accused persons convened meetings and passed resolutions which were illegal, unauthorized, and contrary to the objects of the trust. In pursuance thereof, the accused persons transferred the aforesaid amount on 08.07.2011 through a cheque drawn on the bank account of the trust in favour of another entity, namely Mahavir Seva Trust, Mumbai. It is alleged that some of the accused persons were directly or indirectly connected with the said trust, and therefore, the transfer was effected with an oblique motive to siphon off the funds. It is further alleged that, with a view to conceal the true nature of the transaction, the accused persons manipulated and falsified the records of the trust by altering the name of the beneficiary entity and by making incorrect and misleading entries in the books of accounts. According to the complainant, such acts were done in breach of the fiduciary duties cast upon the accused persons as trustees, who were entrusted with dominion over the trust property and were expected to act in good faith and in the best interest of the trust.

2.3 The complainant has further averred that the said irregularities and acts of misappropriation came to light subsequently, whereupon, apprehending legal consequences and in order to cover up their illegal acts, the accused persons caused the said amount to be re-deposited in the account of the original trust on 11.08.2012. However, it is specifically alleged that such subsequent restitution would not absolve the accused persons of their criminal liability, inasmuch as the act of dishonest misappropriation and unauthorized utilization of the trust funds for the intervening period constitutes an offence in itself.

2.4 It is, thus, the case of the complainant that the accused persons, acting in collusion with each other, abused their position as trustees, passed illegal resolutions, falsified accounts, and dishonestly diverted the trust funds, thereby committing offences punishable under the relevant provisions of law, which is subject matter of challenge before this Court by all the accused except accused No.6 who are applicant before this Court.

3 Heard learned advocate Mr. Dagli for the applicant, learned advocate Mr. Adesara for the respondent and learned APP Ms. Vrunda Shah for the respondent State.

4 Learned advocate Mr. Dagli for the applicants submits that the entire prosecution has been initiated with an oblique motive, merely to harass