IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Satyen Vaidya, J.
Meena - Petitioner
Versus
Sanjay Kumar – Respondent
Cr.MMO No. 509 of 2021
Decided On : 09-12-2022
Criminal Procedure Code, 1973 - Section 156 (3) – Indian Penal Code, 1860 - Section 420 - Quashing of Complaint - Violation of Terms of Agreement - Possession of Vehicle - Petitioner has prayed for quashing of Complaint It can simply be a case of violation of terms of agreement but it cannot be said to be a case of cheating and thereby dishonestly inducing the other to deliver any property to any person – Para 9.
Finding of the Court:
Respondent as evidence before learned trial Court, it was averred that original agreement to sell was executed at Shimla - Copy of agreement placed on record as Ext. CW-1/B also evidences same fact that agreement was executed - Stamp paper for preparation of agreement to sell was purchased on same date from District Treasury and in view of such admission and otherwise proved fact on record, contradictory plea of respondent that agreement was executed orally at office of AU Small Finance Bank Ltd Lunapani in District had no meaning and could not be taken into consideration for holding that part of offence was committed within jurisdiction of learned Judicial Magistrate 1st Class - No prima-facie case under Section 420 of IPC is made out in facts of case against petitioner - In alternative, even if such offence is presumed to have been committed, no part of it has been shown to have been committed within jurisdiction of learned trial Court - Simply because respondent has residence within jurisdiction of learned trial Court will not vest such court with jurisdiction to proceed in matter over which it otherwise had no jurisdiction - Complaint titled Sanjay Kumar vs. Meena and others pending before learned Judicial Magistrate, 1st Class, Mandi along with order as also all subsequent orders passed in aforesaid complaint are quashed and set aside.
Result: Petition succeeds.
JUDGMENT :
Satyen Vaidya, J.
By way of instant petition, petitioner has prayed for quashing of Complaint No.3 of 2021, titled as Sanjay Kumar vs. Meena & others and all subsequent proceedings pending before the learned Judicial Magistrate, 1st Class, Court No.3, Mandi, H.P.
2. Brief facts necessary for adjudication of petition are that the petitioner had purchased a vehicle (Innova Crysta) for plying the same as taxi and had obtained financial assistance from AU Small Finance Bank. Petitioner entered into an agreement to sell dated 11.8.2020 with respondent, whereby the aforesaid vehicle was agreed to be transferred to respondent against total consideration of Rs. 21,44,000/-. Out of the aforesaid consideration amount, a sum of Rs. 2,30,000/- was paid to the petitioner and remaining amount of Rs. 19,14,000/- was to be paid to the financer AU Small Finance Bank in equal monthly installments of Rs. 33,000/-. Possession of the vehicle was handed over to the respondent. Allegedly, respondent defaulted in payment of installments to the AU Small Finance Bank. Petitioner re-possessed the vehicle. Before possessing the vehicle, petitioner had issued a legal notice to respondent on 5.3.2021. The notice was replied on behalf of the respondent vide reply dated 23.3.2021 and it was mentioned that as per agreement, the vehicle could be repossessed only on default of three consecutive installments. 3. Respondent filed an application before learned Chief Judicial Magistrate, Mandi under Section 156 (3) of Cr.P.C., seeking direction to the SHO, Police Station, Sadar to lodge FIR against the petitioner. The grievance of the respondent was that despite his depositing the overdue amount of Rs. 63,404/- with interest, the petitioner on 18.3.2021 had taken forcible possession of the vehicle at Shimla. Respondent had filed complaint to the police at Shimla but no action was taken. Respondent further alleged that later the vehicle was found at Manali and the respondent had made a request for handing over the vehicle to him and on his request, the vehicle was in fact handed over to him. However, on complaint of the petitioner, the vehicle was taken in possession by police and was wrongly released in favour of the petitioner.
4. Petitioner by way of instant petition has contended that though from perusal of contents of application, filed by respondent, no offence was made out against the petitioner, still learned Judicial Magistrate, 1st Class, Court No.3, Mandi has treated the application as complaint and has taken cognizance against the petitioner for commission of offence under Section 420 of IPC. It has further been contended on behalf of the petitioner that without admitting the commission of offence, the taking of cognizance by learned Judicial Magistrate, 1st Class, Court No.3, Mandi in aforesaid matter was without jurisdiction, as no offence was even alleged to have been committed within the jurisdiction of said Court.
5. I have heard the learned counsel for the parties and have also gone through the record carefully.
6. Perusal of application filed under Section 156 (3) of Cr.P.C. by respondent before learned trial Court reveals that reference has been made to agreement dated 11.8.2020 executed between the parties and on the basis of such agreement, respondent claimed right to possess of the vehicle. It was admitted in the application that an amount of Rs. 63,404/- had become due and payable to AU Small Finance Bank. Respondent further averred that he had received the legal notice from petitioner and thereafter he had cleared the overdue amount but despite of such clearance, the vehicle was re-possessed by petitioner at Shimla on 18.3.2021. Respondent further alleged that he had reported the matter to police at Shimla but no action was taken. It was further submitted that the respondent had found the vehicle at Manali and had made a request for handing over its possession to the petitioner. His request was acceded to but the petitioner lodged onlin
Jurisdiction of this Court under Section 482 Cr.P.C. though is restrictive but can always be exercised in order to stop abuse of process of law.
The main legal point established in the judgment is the application of vicarious liability in criminal law and the legality of actions taken by a finance company in relation to loan defaults.
The main legal point established is that a complaint must disclose an offense and the magistrate must apply judicial mind before taking cognizance and issuing process.
Once a contract of sale is complete, the seller cannot take back the sold property without consent, as it would amount to theft under Section 378 RPC.
The complaint must establish fraudulent or dishonest intention for an offense under Section 420 of the IPC, and territorial jurisdiction is crucial.
The rights and obligations in a hire purchase agreement, including the lender's right to repossess the vehicle, were central to the court's decision.
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