Back
IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Gh. Hasnain Massodi, J.
Refex Refrigerants Ltd. - Appellant
Versus
Kolane Refrigerants - Respondent
561-A No. 71/2007
Decided On : 08 April, 2010
Inherent Powers - Criminal Procedure - Section 420 of Ranbir Penal Code - [561-A Code of Criminal Procedure] - The court discussed the inherent powers under Section 561-A of the Code of Criminal Procedure and emphasized that these powers are to be exercised sparingly and with utmost circumspection to prevent abuse of process of the court or secure the ends of justice. The court referred to relevant case law to support the limited exercise of inherent powers.
Fact of the Case:
The complainant alleged that the accused induced him into a business relationship, made false representations, and cheated him of a significant amount of money. The accused disputed the jurisdiction of the Trial Magistrate and claimed that the dispute was of a civil nature.
Finding of the Court:
The court found that the material prima facie disclosed the commission of the offence of cheating by the accused. It held that the order taking cognizance of the offence was not an abuse of process of the court and directed the Trial Magistrate to proceed further in the matter.
Issues: The issues involved the jurisdiction of the Trial Magistrate, the nature of the dispute between the parties, and whether the complaint disclosed the commission of the offence of cheating.
Ratio Decidendi: The court emphasized that the exercise of inherent powers under Section 561-A of the Code of Criminal Procedure should be limited to prevent abuse of process of the court or secure the ends of justice. It also highlighted that the pendency of a civil action does not justify the quashing of criminal proceedings.
Final Decision: The petition was dismissed, and the Trial Magistrate was directed to proceed further in the matter in accordance with the law.
2. The complainant - respondent herein on 25.6.2007, filed a complaint against the present petitioners/ accused in the court of Judicial Magistrate (Ist Class) Pulwama, alleging commission of offence punishable under section 420 & 407 RPC against petitioners/ accused.
3. The complainants case was that the complainant has been running a factory at Industrial Complex Lassipora Pulwama and is doing business of refilling refrigerant gases. The complainant alleged that the petitioners/accused No.2 to 4, Directors of the business concern of M/s Refex Refrigerants Limited, approached the complainant/ respondent in second week of November 2006 at respondents factory at Lassipora, Pulwama and made the complainant to believe that the petitioners/accused were dealing in import and marketing of refrigerant gases in India. The complainant alleged that the petitioners/accused induced the complainant/respondent that the petitioner/accused was having business with complainants wife at Delhi and persuaded the complainant to enter into a business relationship with him. The petitioners/accused, it was alleged, are assured to import refrigerant gases for the complainant from China on the condition that the complainant agreed to finance the purchase of such gases by opening a letter of credit in favour of the manufacturer of gases from China. The petitioners/accused are alleged to have made the complainant to opt for High Sea Sales that did not require the complainant to have any export - import license. The petitioners/accused are also said to have further induced the complainant to place an order for 14 ton tanks with the petitioners/accused and agreed to supply 14 ton tanks at the price of Rs.3.00 lacs. The petitioners/accused by acting in the aforesaid manner are said to have induced the complainant to pay an amount of Rs.22.00 Lacs to the petitioners/accused and to have pursuant to the preplanned conspiracy cheated complainant of the said amount. The complainant alleged that petitioners/accused induced him to open a letter of credit for 45000 USD in favour of M/s Jiangsu Kangtai Flourine Chemical Co. Ltd. China - CIF Value for purchase of 18000 Kgs of refrigerant gases and also made the complainant to pay an amount of Rs. 3.00 Lacs as full and final payment of 14 ton tanks through a Cross Cheque No.112355 drawn on Union Bank of India, favouring Refex Refrigerants Limited, that the petitioners/accused promised to deliver within 20 days. The complainant is said to have on inducement made further payment of Rs.1.30 Lacs through DD No. 520922, on 15th March 2007, to the petitioners/accused, to be adjusted by the petitioners/accused against the sale price of refrigerant gases. It was alleged that the petitioner/accused were found to have no facility for manufacturing ton tanks nor to have placed any order for 140 ton tanks for onward supply to the complainant and to have received 18000 Kgs of Refrigerant Gases from Chennai Customs and to have not made the payment of sale proceeds including the profit amount promised to the complainant. The complainant alleged that the intention of the petitioners/ accused was fraudulent from the very beginning and that the petitioners/accused had, through false representation, induced the complainant to part with Rs.22.00 Lacs and thus cheated the complainant.
4. Learned Judicial Magistrate (Ist Class) Pulwama on receipt of complaint as also documents (Annexure A to K), recorded statement of the complainant and one witness, and proceeded to make the impugned order, taking
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
