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2025 Supreme(Ker) 2528

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. BADHARUDEEN, J.
Anandan R., S/o. Raghavan S. – Petitioner 
Versus
State Of Kerala, Represented By The Public Prosecutor, High Court Of Kerala, Ernakulam and Anr. – Respondents
Crl.M.C.No.7867 of 2023
Decided On : 06-01-2024

Advocates Appeared:
For the Petitioner: C. Rajendran, B.K. Gopalakrishnan, Manoj Rajagopal, R.S. Sreevidya, Manu M.
For the Respondents: B. Raghunathan, R. Srinath, K. Jaladharan, Public Prosecutor Sri M P Prasanth.

An FIR can be quashed when allegations do not establish a prima facie case for the charges under IPC sections relevant to cheating and criminal breach of trust, highlighting the need for sufficient evidence.

Headnote:(A) Code of Criminal Procedure, Section 482 - Indian Penal Code, Sections 409 and 420 - Quashing of FIR and final report - Accused, as power of attorney holder, allegedly exceeded authority by appointing staff and misappropriating funds - Court found no prima facie case established for charges of criminal breach of trust or cheating due to lack of supporting evidence. (Paras 3, 4, 20)

(B) Criminal Procedure - Quashment of Proceedings - Court may quash an FIR if the allegations do not establish an offence, based on the sufficiency of evidence to meet all necessary ingredients. (Paras 5, 20)

Facts of the case:
The petitioner was accused of exceeding powers as a power of attorney holder by making unauthorized appointments and misappropriating gold entrusted for travel purposes, claims which were contested regarding their basis and evidence.

Findings of Court:
The court determined there was insufficient evidence to sustain charges under Sections 409 and 420 of IPC, leading to the quashing of FIR and further proceedings.

Issues: Whether the allegations against the accused satisfied the legal definitions and elements of criminal breach of trust and cheating?

Ratio Decidendi: The court emphasized the necessity of a prima facie case for serious charges, ruling that contradictory statements and lack of corroborative evidence led to insufficient grounds for trial.

Result: Crl.M.C stands allowed; FIR and further proceedings quashed.

Table of Content
1. overview of the case and allegations. (Para 1 , 3)
2. initial hearing and counsel's details. (Para 2)
3. petitioner's arguments against the charges. (Para 4 , 5 , 7 , 8)
4. explanation of legal standards for ipc sections. (Para 9 , 10 , 11 , 13 , 14)
5. clarification of deception and contractual aspects under ipc. (Para 15 , 16 , 17 , 18 , 19)
6. court's analysis of the case evidence and quashing of charges. (Para 20)

ORDER :

This Criminal Miscellaneous Case has been filed under Section 482 of the Code of Criminal Procedure by the sole accused in C.C.No.315 of 2016 on the files of the Judicial First Class Magistrate Court (Temporary), Sasthamcotta, arose out of Crime No.1102 of 2010 of Sooranadu Police Station, seeking the relief to quash Annexures A1 FIR, A4 final report and further proceedings in the above case.

2. Heard the learned counsel for the petitioner and the learned counsel for the defacto complainant as well as the learned Public Prosecutor in detail. Perused the records available and the decisions placed by the learned counsel for the petitioner.

3. The prosecution case is that the accused, who was appointed as the power of attorney holder of the defacto complainant to manage the day-to-day affairs of SPMUP School, Ayikunnam, exceeded the power he was given as the Power of Attorney Holder and appointed one Rajeev.V, as Peon on 11.06.2007 and obtained Rs.6 lakh from him. The further allegation is that he also misappropriated gold ornaments weighing 90 grams entrusted by the defacto complainant to arrange air ticket for her by pledging the same for excess amount and thereby he committed the offences punishable under Sections 409 and 420 of the INDIAN PENAL CODE (`IPC’ for short).

4. While seeking quashment of the crime, the learned counsel for the petitioner would submit that the entire allegations are false. According to the learned counsel for the petitioner, admittedly the defacto complainant appointed the petitioner as a power of attorney holder to manage the school and as per the power of attorney executed by the defacto complainant in favour of the petitioner, he was authorised to make appointments also. Therefore, the appointment is perfectly justifiable and none of the offences would attract. However, the learned counsel fairly conceded that even though on reading the power of attorney, power of appointment also was given, as per Annexure A7 judgment in W.P(c).No.25919/2007 on 30.06.2009 this Court found that the power of attorney executed by the defacto complainant in favour of the petitioner did not confer the power to make appointments. In view of Annexure A7 judgment in W.P(c).No.25919/2007, the contention raised by the petitioner that he was given power of appointment would not succeed.

5. In addendum, it is submitted by the learned counsel for the petitioner that even when the whole allegations are taken as a gospel of truth, offence under Section 409 of IPC would not attract. According to the learned counsel for the petitioner, the ingredients to attract Section 409 of IPC is not made out, prima facie. Regarding the allegation as to commission of offence under Section 420 of IPC, it is submitted by the learned counsel for the petitioner that initially the allegation of the defacto complainant was that the accused pledged 90 grams of gold ornaments for the purpose of obtaining air ticket in excess of the amount required and misappropriated the money. But later the statement of the defacto complainant is that after her arrival from abroad when she had given money to release the pledged gold ornaments, the accused, after receiving the money, did not utilise the same for the said purpose and thereby cheated her. Since the allegations regarding commission of offence under Section 420 of IPC are contrary in the above line, the said offence also would not attract. The learned counsel placed decision of the Apex Court reported in [2012 KHC 4612 : 2012 (10) SCALE 299 : AIR 2013 SC 181 : 2012 (10) SCC

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