SATYEN VAIDYA
Meena – Appellant
Versus
Sanjay Kumar – Respondent
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. T
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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