IMPORTANT POINT
Criminal proceedings cannot be initiated for mere breach of contract; allegations must disclose a criminal offence to justify prosecution.

JUDGMENT :

Heard Mr. S. H. Sikdar, learned counsel for the petitioner. Also heard Ms. S. Mere, learned P.P. for the State and Mr. P. Surien, learned counsel for the respondent Nos. 2 to 5.

2] By way of this petition, under Section 482 of the Code of Criminal Procedure, 1973, the petitioner is seeking quashing of entire criminal proceeding in respect of GDE No.09/2023 dated 12.07.2023 of Sub-Urban Police Station, Dimapur, Nagaland.

3] The facts of the case is that the respondent Nos. 2 to 5 lodged a complaint dated 12.07.2023 before the Officer-in-Charge Sub-Urban Police Station Dimapur Nagaland alleging that the accused/petitioner and the Directors of the 4 proprietorship firm of which the respondent Nos. 2 to 4 are proprietor has entered into an agreement whereby the accused/petitioner was required to supply electrical products to the warehouses of the respondents. It is alleged in the complaint that though initially the delivery was made as agreed however, later on the delivery was stopped. It is further alleged that despite repeated reminders, the accused/petitioner failed to deliver the agreed products and in this manner it is alleged that the accused/petitioner has intentionally cheated the respondents/complainants. Accordingly, GDE entry was made as GDE No.09/dated 12.07.2023. Thereafter, the Investigating Officer of the jurisdictional Police Station on 01.08.2023 issued notice to the accused/petitioner under Section 41-A Cr.PC to appear before the Investigating officer of the case along with all the relevant documents. Upon receipt of the aforesaid notice issued under Section 41-A Cr.PC, the petitioner/accused approached this Court by filing the present criminal petition seeking quashing of the criminal proceeding initiated in respect of the aforesaid GD entry i.e GDE 09/2023.

4] Mr. S.H. Sikdar, learned counsel for the petitioner submits that the allegation as contented in the complaint does not constitute any criminal offence whatsoever and as such, the continuation of the criminal proceeding based on such complaint is not justified. He further submits that if the averment made in the complaint is taken at its face value, the same at best is purely a civil wrong. He further submits that under the subject Memorandum of Understanding (MOU) there is an arbitration clause and hence, the complainants instead of taking recourse to the said arbitration clause has filed the complaint only as a pressure tactics and therefore, is a total abuse of the Court process.

In support of the aforesaid submission, he relied upon the decision of the Apex Court in the case of V.Y.Jose and another vs State of Gujarat and Anr. reported in (2009) 3 SCC 78.

5] Per contra, Mr. P. Surien, learned counsel for the respondent Nos. 2 to 5 submits that the act of criminality is apparent on the face of the allegations of the complaint lodged by the complainants. He further submits that even if the allegation pertains to civil in nature, the allegation also involves criminality, and that, the criminal proceedings cannot be scuttled at the threshold. He submits that the prayer for quashing the criminal proceeding is at pre-mature stage and the same ought not to be entertained by this Court. He further submits that since the statements are yet to be recorded and charge-sheet is also not filed, this Court should restrain from quashing the criminal proceeding while exercising inherent jurisdiction under Section 482 of the Cr.PC. He submits that the criminal prosecution cannot be thwarted merely because the dispute pertains to be civil.

6] He further submits that existence of an arbitration clause is also not a sufficient ground for quashing the complaint filed by the respondents/complainants. He further submits that quashing of the complaint is not justified on the ground that the complaint discloses a commercial or civil transactions. He further submits that many a time cheating is committed in the course of the transactions which is the exact situation of the p