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2023 Supreme(Gau) 672

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MITALI THAKURIA, J.
Falcon Realty Pvt. Ltd. – Petitioner
Versus
Rajendra Prasad Kakoti S/o Late Radhika Prasad Kakoti – Respondent
Crl. Rev. Pet. No. 383 of 2022
Decided On : 05-06-2023

Advocates:
Advocate Appeared:
For the Petitioner: F. Haque.
For the Respondent: J. Das.

Point of Law: As per Section 177 Cr.P.C., every offence shall ordinarily be inquired into and tried by a Court within whose local jurisdiction it was committed.

Headnote:

Code of Criminal Procedure, 1973 - Section 397, 401, 482, 177, 179, 200, 202 - Indian Penal Code, 1860 - Sections 406, 420, 34 - Determine territorial jurisdiction - Misleaded Court to take cognizance - Application for setting aside and quashing C.R. Case – There is a clause for Arbitration if any dispute arise between parties - Para 21.

Finding of the Court: Complaint case was lodged by respondent only with allegation of misappropriation of money and cheating by petitioner company - It is seen that though there is an Arbitration clause where dispute can be solved between parties by appointing Arbitrator, but Court has power to conduct a trial of a case if there is an allegation of committing an offence by either of parties - Hon’ble Apex Court has expressed view that Arbitrator cannot conduct a trial or any act which amounted to offence and hence, Court has power or authority to try case if there is an allegation of any offence committed by either of parties in respect of fact that there is an arbitration clause in agreement – Court do not find it a fit case to exercise power under Section 482 of Code of Criminal Procedure to set aside or quash entire proceeding.

Result: Petition dismissed.

JUDGMENT :

MITALI THAKURIA, J.

1. Heard Mr. F. Haque, learned counsel for the petitioner. Also heard Mr. A.K. Bhuyan, learned counsel for the respondent.

2. This is an application under Section 397/401 read with Section 482 of the Code of Criminal Procedure, 1973, for setting aside and quashing the C.R. Case No. 4452/2019, pending before the Court of learned Judicial Magistrate First Class, Kamrup(M), Guwahati.

3. It is stated that the respondent preferred a complaint case before the Court of learned Judicial Magistrate First Class, Kamrup(M), Guwahati, which was accordingly registered as C.R. Case No. 4452/2019 against the petitioner Company with some false and concocted allegation and also misleaded the concerned Court to take cognizance and issue summon to the petitioner Company. The petitioner Company, i.e. the Falcon Realty Private Limited, is associated with construction of flats in National Capital of Delhi and adjoining areas under “Akhil Bharatiya Aawas Yojna” having its registered Office at Global Eco City, New Delhi. The respondent booked a flat at New Delhi by making an application before the petitioner Company for allotment of an apartment under “Akhil Bharatiya Aawas Yojna.” Considering that application, the petitioner Company was pleased to allot apartment No. 511 on 5th floor at Tower No. 01 in ABAY Tower. Thereafter, the respondent entered into an agreement with the said Company where there was an Arbitration clause in paragraph No. 62 of the said agreement.

4. It is very clear in the agreement that both the parties entered into an agreement at New Delhi, but the respondent filed the complaint case before the learned Judicial Magistrate First Class, Kamrup(M), Guwahati, who accordingly took the cognizance, vide order dated 18.01.2020, without having any jurisdiction to take up the matter or to take cognizance. The respondent mentioned a wrong local address which is also reflected in the order of the complaint case, though there is no Office of the petitioner in the given local address at Guwahati, i.e. at Dona Planet, G. S. road, Guwahati. If the Court does not have the territorial jurisdiction over the events or the persons concerned, the Court cannot take cognizance of the same. Section 177 of the Cr.P.C. lays down the general rule as to territorial jurisdiction for criminal enquiries and proceedings which provides that the area within which the offence is committed is relevant to determine the territorial jurisdiction of the Court. The Magistrate within whose jurisdiction the crime was allegedly committed has the jurisdiction to try the offence which is of course subjected to explanation contained in the subsequent sections.

5. More so, the petitioner Company has not committed any offence under Sections 406/420/34 of the Indian Penal Code and the entire matter is of documentary one which is civil in nature and as per the agreement, the jurisdiction lies only at New Delhi and not in Guwahati, Assam. The allegation that the petitioner Company has its Office at Dona Planet, G. S. Road, Guwahati, is totally false. Though the officials of the Company stayed at Hotel Novotel, Guwahati, yet they stayed as in the normal state of affairs in their official capacity or for other purpose, and there is no document to prove that they had any established office at Dona Planet, G.S. Road, Guwahati, to give rise any jurisdiction to try the case by the learned Judicial Magistrate First Class, Kamrup(M), Guwahati.

6. Further, it is stated that the petitioner Company also send the Demand Letter to the respondent on 25.11.2011 through courier service asking the respondent to clear the installment in respect of the flat booked by the respondent, but the respondent miserably failed to make any payment as per the Demand Letter. After sending the said Demand Letter, the petitioner Company also send one more legal notice to the respondent asking him to fulfill all the terms and conditions and to clear the outstanding dues as the petitioner

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