Back
IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
HONOURABLE MRS. JUSTICE MITALI THAKURIA, J.
Black Short India Ltd. And Ors. – Petitioners
Versus
Pawan Putra Enterprise, Represented By Manager Debajit Das And Anr. – Respondents
Crl.Pet. No.112 of 2023
Decided On : 21-06-2024
CRIMINAL LAW - QUASHING OF COGNIZANCE - Section 482 of Cr.P.C, Sections 403, 406, 417, 420, 423, 465, 468, 471, 473, 506, 120(B) of IPC - The court discussed the applicability of Section 482 of the Cr.P.C. for quashing criminal proceedings, emphasizing that the inherent power should be exercised sparingly to prevent abuse of process. The court interpreted the sections of the IPC cited in the complaint, determining that the allegations, while civil in nature, did not warrant quashing as they disclosed a prima facie case of criminal liability. The court concluded that the learned Magistrate had sufficient grounds to take cognizance based on the complaint and supporting statements.
Fact of the Case:
The petitioners, a private limited company and its employees, were accused by the respondents of various criminal offenses including cheating and forgery related to a business transaction involving a significant sum of money paid for a Carrying and Forwarding Agent agreement. The respondents alleged that the petitioners failed to fulfill their contractual obligations and forged documents to obtain additional funds.
Finding of the Court:
The court found that the allegations made by the respondents, while primarily civil in nature, did not lack a prima facie basis for criminal liability. The court noted that the learned Magistrate had taken cognizance after reviewing the complaint and supporting statements, which indicated potential criminal conduct.
Issues: Whether the allegations in the complaint constituted a criminal offense warranting cognizance, and whether the inherent powers under Section 482 of the Cr.P.C. could be exercised to quash the proceedings.
Ratio Decidendi: The court held that the existence of a civil dispute does not preclude the possibility of criminal liability if the allegations disclose a prima facie case. The court emphasized the need for a thorough examination of the complaint and supporting evidence before quashing criminal proceedings.
Final Decision: The court dismissed the petition to quash the order of cognizance and the criminal proceedings, affirming that the learned Magistrate acted within his jurisdiction in taking cognizance of the case.
JUDGMENT :
(Mitali Thakuria, J.) :
Heard Mr. P. Sonawal, learned counsel for the petitioner. And also heard Mr. K. Bhattarcharjee, learned counsel for the respondent Nos. 1 & 2.
2. This is an application under Section 482 of Cr.P.C for quashing and setting aside of the order dated 23.11.2022 passed in C.R. Case No. 5768/2022 by the Court of learned Judicial Magistrate First Class, Kamrup Metro, Gauhati, Assam, whereby, the learned Court below took cognizance of the case against the petitioner under Sections 403/ 406/ 417/ 420/ 423/ 465/ 468/ 471/473/506/120(B) of the Indian Penal Code.
3. In brief, the case of the petitioners is that the petitioner No. 1, is a private limited company incorporating under the companies act and a young entrepreneur in the field of liquor business presently engaged in the manufacturing, marketing sale & distribution of liquor products for human consumption, including those manufactured/sold by other manufacturers/companies and is having a very good reputation in the industry. The petitioner Nos. 2 & 3 are employees of the Black Short India Limited and they were appointed by the aforesaid company to look after the work assigned to them as per their post and responsibilities. The respondents filed a complaint against the present petitioners and others alleging inter-alia of cheating, fraud, wrongful loss, criminal breach of trust, forgery, misappropriation of property, threat etc., and also alleged that the Black Short India Limited has received an amount of Rs. 1,02,00,000/-(Rupees One crore two lakhs) from the respondents against their appointment as Carrying and Forwarding Agent (C&F). It is further alleged that the respondents had paid an amount of Rs. 1,02,00,000/-(Rupees One crore two lakhs) to the Black Short India Limited but they did not do any work as promised till May, 2021. It is further alleged that the respondents informed the Black Short India Limited and its employees that he has exhausted all his resources by paying the Black Short India Limited an amount of Rs. 1,02,00,000/- (Rupees One crore two lakhs) and hence, finally the respondents took the decision that they will not continue the business with the Black Short India Limited and asked the company to return an amount of Rs. 1,02,00,000/-(Rupees One crore two lakh) with interest of 10% within 7(seven) to 10(ten) days. But the said company and its employee have forged the signature of the complainant and used the forged documents as genuine to obtain additional amount from the complainant. The respondents have also filed a money suit before the Civil Judge Kamrup(M) which is numbered as Money Suit Case No. 92/2021 for recovery of money which is pending before the Court of learned Civil Judge No. 2.
4. It is further stated by the learned counsel for the petitioners that the allegations leveled against in the complaint by the respondents are vague and does not attract any criminal liability towards the petitioners, inasmuch as the allegations leveled by the complainant are apparently, result of their imagination or perceptions.
5. The actual fact is that the respondent No. 1 requested the Black Short India Limited Company to appoint them as their Carrying & Forwarding Agent (C&F) and considering their request, the respondent No. 1 was appointed as Carrying & Forwarding Agent for the State of Assam. For the aforesaid appointment, the respondent No. 1 had to pay an amount of Rs. 2,00,00,000/-(Rupees Two crore) (non-refundable) excluding confirmation amount of Rs. 3,00,000/-(Rupees Three lakhs) to the said company against the necessary permissions, registration, raw material and stock etc. Accordingly, the respondent No. 1 agreed to the said terms and conditions, he started to pay the said amount in installment basis and the company accordingly started the process for obtaining necessary permissions for the State of Assam and also for purchasing stock of raw material and other manufacturing and bottling products. The agreement in this
The court established that a civil dispute can coexist with criminal allegations, and the mere existence of a civil remedy does not negate the possibility of criminal liability if the complaint discl....
A civil dispute may contain elements of criminal wrongdoing, and the existence of a civil remedy does not bar the initiation of criminal proceedings if the allegations suggest potential criminal offe....
The court upheld the distinction between offences under different sections, ruling that the provisions of Section 210 Cr.PC do not apply when the nature of the offences differs.
Prima facie evidence of cheating under Section 420 of the Indian Penal Code was sufficient for the Trial Court to take cognizance and proceed with the case.
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....
Criminal proceedings should not be used to scuttle legitimate prosecutions and cautioned against criminalizing civil disputes.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
