Point of Law: Court has time and again drawn attention to the growing tendency of the complainants attempting to give the cloak of a criminal offence to matters which are essentially and purely civil and contractual in nature.

ORDER :

Both these Crl.M.Cs have been filed to quash Annexure A FIR in Crime No.51/2020 of Vellayil Police Station u/s 482 of Cr.P.C.

2. The petitioners in Crl. M.C.No.1250/2021 are the accused Nos.1 to 4, 6, 7, 9 and 12. The petitioners in Crl. M.C. No. 4828/2020 are the accused Nos.10 and 13. The 2nd respondent in both Crl.M.Cs is the de facto complainant.

3. The offences alleged are punishable under Sections 406, 420, 465, and 471 r/w 34 of IPC.

4. Annexure A FIR was registered based on Annexure C complaint given by the 2nd respondent to the State Police Chief. 4th

5. The 4th accused, BMW India Private Limited, a company registered under the Indian Companies Act, is the manufacturer of vehicles under the brand name BMW. The 1st accused is the Global Chairman of the BMW group. The 2nd accused is the General Director of the 4th accused company in charge of Asia-Pacific and Australian countries. The 3rd accused was the previous Managing Director of the 4th accused company and is currently the Chairman of Indian Operations. The 5th accused is the present President and CEO of the 4th accused company. The 6th accused is the acting president of the 4th accused company, who was the president and CEO during the year 2018-2019. The 7th accused is the Director who deals with the dealers, including their appointment. The 8th accused was the Managing Director and CEO of BMW India Financial Services Pvt. Ltd, a financial institution of the 4th accused company. The 9th accused is the Company Secretary and Legal Administration of the 4th accused company. The 10th accused is the Head-Risk and Controlling, BMW India Financial Services Pvt. Ltd. The 12th accused was the Former President of the 4th accused company. The 13th accused is BMW India Financial Services Pvt. Ltd.

6. M/s Platino Classic Motors (India) Pvt. Ltd, a company incorporated under the Indian Companies Act, 1956 (for short, M/s Platino), was appointed as the dealer of the 4th accused company for the sales and service of the vehicles manufactured by it. The 2nd respondent is the Managing Director of M/s Platino.

A dealership agreement was executed between M/s Platino and the 4th accused. Annexure D is a copy of the dealership agreement. The said agreement was extended periodically from the year 2007 till the end of 2018. The dealership was started without any term loans. A Deferred Payment Agreement (DPA) was executed between M/s Platino, the 4th accused, and the 13th accused. As per the DPA, a credit line was given to M/s Platino by the 13th accused, against which the dealer has to purchase BMW vehicles from the 4th accused for sales. The agreement stipulates that M/s Platino has to pay interest to the 13th accused for the amount utilized. The above-mentioned credit line to M/s Platino was agreed to be determined from time to time based on the estimated sales of the vehicles manufactured by the 4th accused and based on the risk classification determined by the 4th accused and 13th accused periodically.

7. The 2nd respondent in Annexure C complaint alleged that as per the terms of the DPA, before increasing the credit line, the confirmation, acceptance and acknowledgement are to be obtained from M/s Platino, but the 4th accused company kept on changing the credit line based on the sales achievement without its request. It is further alleged that even though this was objected to by the 2nd respondent at several meetings with various representatives of the 4th accused, there was no change in the attitude of the 4th accused, including the accused Nos.3 and 5 to 11. Consequently, a huge number of vehicles were unnecessarily invoiced to M/s Platino against the allocated credit line, which is not intended by the DPA. It is also alleged that the dumping of vehicles by misutilising and misappropriating the credit line limits mentioned in the DPA resulted in unwarranted pressure in the sales of vehicles besides causing unnecessary accrual of bank interest on M/s Platino due to tough competition