IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MALASRI NANDI, J.
Marnya Chiram S/o Lt. T. Chiram – Appellant
Versus
Vijay Kumar Agarwala and Anr – Respondent
Crl.Pet. 1026 of 2015
Decided on : 21-08-2024
Quashing - Criminal Proceedings - Section 406, 420 IPC; Section 482 CrPC - The Court discussed the provisions of IPC regarding criminal breach of trust and cheating, emphasizing the necessity of a prima facie case for cognizance and the distinction between civil and criminal disputes.
Fact of the Case:
The petitioner sought to quash criminal proceedings against him related to a complaint alleging criminal breach of trust and cheating in a contractual dispute over road construction payments, asserting he acted in his official capacity and had no personal liability.
Finding of the Court:
The Court found that the complaint made out a prima facie case under the relevant IPC sections, and the allegations could not be dismissed as merely civil in nature, thus upholding the trial court's cognizance.
Issues: Whether the criminal proceedings should be quashed on the grounds of lack of jurisdiction, absence of sanction, and the nature of the allegations being civil rather than criminal.
Ratio Decidendi: The Court reiterated that a complaint can only be quashed if it does not disclose any cognizable offence, and the mere existence of a civil dispute does not preclude criminal liability if the allegations meet the necessary legal criteria.
Result: The criminal petition is dismissed, allowing the trial Court to proceed with the case.
JUDGMENT :
MALASRI NANDI, J.
Heard Mr.R.Hussain, learned counsel for the petitioner and Mr. B.Sarma, learned Additional Public Prosecutor for the State/respondent No.2. None appears for the respondent No.1.
2. By filing this application under Section 482 CrPC, the petitioner has prayed for quashing of the criminal proceeding in connection with Complaint Case No. 94c/2015 under Section 406/420/447/294/506 IPC pending in the court of learned Judicial Magistrate, 1st Class, Tinsukia.
3. The fact of the case, in brief, is that proforma opposite party being proprietor of M/S Huto Trading Agency, entered into an agreement with Government of Arunachal Pradesh for construction of works and maintenance of road from old Abali to Ingino via Harupahar, Arango and Denlo, Arunachal Pradesh under PMGSY by the Executive Engineer, Rural Works Department, Roing, Arunachal Pradesh and accordingly, an agreement was executed to do that work.
3. The proforma opposite party No. 2 Teli Kechi executed irrevocable power of attorney in favour of opposite party No.1 and both the opposite parties entered into an agreement to complete the balance works. Thereafter, the opposite party No. 1 approached the petitioner for making payment to him in respect of the work done on the basis of power of attorney and the petitioner subsequently made payment to power of attorney holder i.e. opposite party No. 1. The further case of the opposite party No. 1 is that on 31.08.2015, at about
4. 30 pm, while he was sitting in his shop, the petitioner threatened him and accordingly, the opposite party No.1 filed a complaint against the petitioner and the opposite party No.2.
4. It was urged by the learned counsel for the petitioner that on bare perusal of the complaint filed by the opposite party No.1, it reveals that no case is made out under Section 406/420/447/294/506/34 IPC. But the learned trial court erroneously took cognizance of the same. It is further submitted that the petitioner is a government employee and discharged the official duty at the relevant time and as such, he is not personally liable even if any case is made out by opposite party No.1.
5. Learned counsel for the petitioner has further argued that the Government of Arunachal Pradesh through the Executive Engineer RWD entered into a contract with M/S Huto Trading Agency of Arunachal Pradesh in the year 2007. The opposite party No.1 is a stranger to that agreement. The complaint petition of opposite party No.1 disclosed that the original contractor (opposite party No.2) sub-let some portion of the work to him without any authority of law despite prohibition in the contract. The payments for work had also not been made to any other person except the contractor in terms of the agreement clause. As the opposite party No.1 is stranger to the agreement, as such, he has no such right to demand for payment from the Government or from the petitioner. If the opposite party No.1 has any grievance relating to payment, then he may claim either from the contractor or from the Government of Arunachal Pradesh but he has no right to make any claim against the petitioner who discharged his official duty and not acted in his personal capacity. Accordingly, the complaint of the opposite party No.1 is baseless and based on concocted story and filed with malafide intention to extract the public money from the petitioner as well as Government of Arunachal Pradesh.
6. It is also the submission of learned counsel for the petitioner that the opposite party filed the complaint case against the petitioner by suppressing the material facts and also making false statements therein inasmuch as the opposite party No.1 despite the knowledge, has not disclosed that the contractor i.e. opposite party No.2 has cancelled the power of attorney given to him and appoint another attorney holder namely, Rajju Lenggi. In absence of challenging the power of attorney, the opposite party No.1 has no legal right to make any claim in relation to the contract
A.C. Narayanan vs- State of Maharashtra
Indian Oil Corporation vs- NEPC India Ltd. & Ors.
K. Ashoka –vs- N.L.Chandrashekar & Ors reported in (2009) 5 SCC 199
R.Kalayani vs- Janak C.Mehta reported in (2009) 1 SCC 516
R.P.Kapur vs. State of Punjab reported in AIR 1960 SC 866
Rajeshwar Tiwari & Ors. Vs- Nanda Kishore Roy
AI
A complaint alleging criminal breach of trust and cheating can proceed even if it arises from a contractual dispute, provided it meets the prima facie standard for criminal offences.
The Court reaffirmed that a complaint can only be quashed if it does not disclose a prima facie case of an offense, emphasizing the distinction between civil and criminal matters.
The Court held that the essential ingredients of the offences alleged against the petitioners are not present. The Court also noted that the dispute between the parties is essentially civil in nature....
Criminal proceedings cannot be sustained when the allegations do not constitute a criminal offence and are primarily civil in nature.
Criminal proceedings cannot be initiated for civil disputes; a prima facie case must exist to avoid abuse of legal processes.
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