IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN, BENCH AT JAIPUR
BIRENDRA KUMAR, J.
Kamal Mehta, S/o. Late Shri Mahaveer Chand Mehta - Petitioner
Versus
State Of Rajasthan, Through Public Prosecutor and Anr. – Respondents
S.B. Criminal Miscellaneous (Petition) No. 1433 Of 2022
Decided On : 02-06-2023
Indian Penal Code,1860 - Section 120, 120B, 409, 461, 468 and 471 - Banking Regulation Act, 1949 - Section 22 - Rajasthan Cooperative Societies Act - Section 55 and 104 - Criminal Procedure Code,1973 - Sections 482 and 561A - Rajasthan Co-operative Societies Act - Sections 55 and 57 - Fraudulently dishonesty -Criminal breach of trust - Petitioner was elected Chairman of the Board of Directors Urban Co-operative Bank Limited, from year society was registered Rajasthan Co-operative Societies Act, 2001 - Society had permission/licence from Reserve Bank of India under Section 22 of the Banking Regulation Act, 1949 - Held, FIR inquiry report never got approval by screening committee or any other authority as yet - Inquiry under Section 55 of Act does not permit recommendation for registration of FIR unless and until an opportunity of hearing was given to individuals who were at helm of management of society and after hearing their individual liability is ascertained, which was never done - Petition is allowed.
JUDGMENT :
1. The petitioner has sought for quashment of FIR No. 152/2014 registered with Shyam Nagar, Police Station, Jaipur (south) for offences under Section 120, 120B, 409, 461, 468 and 471 IPC.
2. The main ground of challenge is that statutory provisions were not complied before registration of FIR and the FIR discloses no offence against the petitioner.
The petitioner was elected Chairman of the Board of Directors of Vaishali Urban Co-operative Bank Limited, Jaipur from the year 1998 to 2004 and again from 2006 to 26.6.2009. The said society was registered under The Rajasthan Co-operative Societies Act, 2001. The society had permission/licence from Reserve Bank of India under Section 22 of the Banking Regulation Act, 1949 to commence banking business. From time to time, inspection of the society was made by the Reserve Bank of India. Financial mismanagement and other deficiencies were recorded in the reports dated 6.2.2003 and 11.1.2003. When anomalies were not removed nor financial status of the society was improved, on direction of the Reserve Bank of India, banking facilities of the society was withdrawn and in the year 2009, the Board of Directors was superseded and an administrator was appointed to look after affairs of the society. On 13.1.2012, the Additional Registrar of Co-operative societies conducted an inquiry under Section 55 of the Rajasthan Cooperative Societies Act and made several recommendations to take action against office bearers of the society for recovery of the mismanaged amount and side by side recommendation was made for institution of FIR against erring officers and employees of the society. Accordingly, impugned FIR was registered.
3. The present status of the criminal case is that charge-sheet has been submitted against the petitioner and his wife, whereas, against other named co-accused, a closure report has been submitted vide charge-sheet No. 105 dated 15.7.2022. The FIR contains allegation of defalcation of rupees six crore seventy one lakh twenty thousand eight hundred and sixty five (Rs.6,71,20,865/-). The report of the respondent dated 13.1.2012 was challenged in an appeal under Section 104 of the Act. The petitioner sought for permission of the Registrar for deposit of the aforesaid amount along with his undertaking at Annexure-6. Permission was granted vide order dated 5.12.2018 and communication to this effect was made to the petitioner on 18.12.2018 and the petitioner deposited entire amount which was due of the creditors/depositors.
4. Preliminary objection of the respondents, especially respondent No.2 who is complainant of the FIR is that the petitioner had moved earlier this Court for quashing of the same FIR in S.B. Cr. Misc. Petition No. 517/2015 and the said Misc. Petition was disposed of on 5.9.2017 with the following orders:
5. The respondents are of the view that once the High Court had rejected the petition for quashing the proceedings, it was not competent for the High Court to entertain another petition for the same purpose as that would amount to review of its earlier order which the High Court has no jurisdiction to do.
Learned counsel for the respondent has relied on the judgment of the Hon’ble Supreme Court in Atul Shukla Vs. State of Madhya Pradesh and anr. 2019 (17) SCC 299 & Sunita Jain Vs. Pawan Kumar Jain and Ors. (2008) 2 SCC 705 in support of his submission that entertainment of second petition under Section 482 Cr.P.C for the same cause would amount to review of the earlier order passed on the same prayer under Section 482 Cr.P.C.
On the facts of this case, though these judgments are not helping the respondents as the Court
Atul Shukla Vs. State of Madhya Pradesh and Anr
Sunita Jain Vs. Pawan Kumar Jain and Ors.
Superintendent and Remembrancer of Legal Affairs W.B. Vs. Mohan Singh & Ors.
State represented by DSP, SB CID, Chennai Vs. K.V. Rajendran & ors.
Superintendent of Police, Karnataka Lokayukta and Ors. Vs. B. Srinivas
Central Bureau of Investigation Vs. Jagjit Singh (2013) 10 SCC 686
The court clarified that serious allegations of misappropriation against cooperative society officials justified not quashing the FIR, reinforcing the need for investigations in light of potential cr....
Prior sanction from the Registrar is mandatory for prosecution under the A.P. Co-operative Societies Act, and failure to obtain it invalidates the proceedings.
Criminal proceedings under the A.P. Co-operative Societies Act require prior sanction from the Registrar; failure to obtain such sanction invalidates the prosecution.
The accused has no right to a hearing before the registration of an FIR, and anyone can initiate criminal proceedings unless explicitly barred by law.
FIR quashed when based on biased enquiry report set aside, especially after exoneration in fresh statutory enquiry.
Granting prosecution sanction requires careful consideration of evidence, not merely formal compliance; relevant findings from prior inquiries can substantively justify the decision.
Cheating - Quashing of FIR - Petitioner cannot claim benefits of Section 108A of Act, 1995 - offence committed under Section 61 of Act, 1995 and FIR lodged under Sections 406, 420, 467, 468, 471 and ....
The complaint under Section 156(3) Cr.P.C must disclose the commission of a cognizable offence, and vicarious liability cannot be imposed without proper allegations and evidence.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.