IN THE HIGH COURT OF JHARKHAND AT RANCHI
Ananda Sen, J.
Sanjay Kumar Sharda - Appellant
Versus
State Of Jharkhand & Ors. - Respondent
W.P. (Cr.) No. 395 of 2019
Decided On : 18-06-2020
FIR Quashing - Criminal Breach of Trust - Section 406, 420, 34 IPC - The court analyzed the FIR and found that the allegations did not satisfy the elements of criminal breach of trust and cheating as per Sections 405 and 415 IPC. The court referred to relevant Supreme Court judgments to establish that civil liability cannot be converted into criminal liability and that criminal proceedings are not a shortcut for other remedies. The court concluded that the continuation of the criminal proceeding would be an abuse of the process of the court and quashed the FIR under Article 226 of the Constitution of India.
Fact of the Case:
The petitioner filed a petition under Article 226 of the Constitution of India seeking to quash the entire criminal proceeding, including the First Information Report (FIR) in connection with a case registered for the offence under Section 406, 420, and 34 IPC. The respondent alleged criminal breach of trust and cheating in a business transaction.
Finding of the Court:
The court found that the allegations in the FIR did not satisfy the elements of criminal breach of trust and cheating as per Sections 405 and 415 IPC. The court concluded that the continuation of the criminal proceeding would be an abuse of the process of the court and quashed the FIR under Article 226 of the Constitution of India.
Issues: The issues involved the interpretation of Sections 405 and 415 IPC in the context of the allegations in the FIR and the application of relevant Supreme Court judgments regarding the abuse of the process of law in converting civil liability into criminal liability.
Ratio Decidendi: The court applied the principles established by the Supreme Court, emphasizing that civil liability cannot be converted into criminal liability and that criminal proceedings are not a shortcut for other remedies. The court found that the allegations in the FIR did not satisfy the elements of criminal breach of trust and cheating as per Sections 405 and 415 IPC.
Final Decision: The court quashed the FIR in connection with the case registered for the offence under Section 406, 420, and 34 IPC, concluding that the continuation of the criminal proceeding would be an abuse of the process of the court.
JUDGMENT
1. The lawyers have no objection with regard to the proceeding, which has been held through video conferencing today at 10:30 A.M. They have no complaint in respect of the audio and video clarity and quality.
2. By way of filing this petition under Article 226 of the Constitution of India, the petitioner has prayed for quashing of the entire criminal proceeding including the First Information Report in connection with Ramgarh P.S. Case No. 300 of 2018, registered for the offence under Section 406, 420 and 34 I PC, pending before the court of learned Chief Judicial Magistrate, Ramgarh.
3. Heard the counsel for the parties.
4. Counsel for the petitioner submits that from perusal of the FIR, it will be clear that no criminal offence is made out. He further submit that there was on going business transaction between the parties and if for some breach of contract or because of some misunderstanding between the parties, the business transaction fails, it cannot be said that criminal cause of action arises for initiating a criminal proceeding. He submits that FIR was registered at the pressure of "Mukhya Mantri Jansanbad Kendra" (the Chief Minister Public Hearing Cell), which is a non-statutory authority and no direction can be given by such authority to register the FIR. He also submits that the action of the said Cell is absolutely bad, when there is procedure laid down in the Code of Criminal Procedure as to what steps are to be taken, and in what manner, if an FIR is refused registration by police.
5. Mr. Anil Kumar, learned senior counsel for respondent No. 5 submits that the petitioner has cheated the respondent No. 5, as some of the materials have been kept/withhold by the petitioner and thus, offence under Section 406 I PC is made out. He further submits that when an offence is made out, FIR cannot be quashed.
6. This is a petition in which, an FIR is sought to be quashed. The law is well settled on this issue. The Hon''ble Supreme Court in the case of State of Haryana and Ors. vs. Bhagan Lal and Ors. reported in (1992) Suppl. 1 SCC 335 (2014) 3 SCC 151 has held that when an offence is made out, the FIR cannot be quashed. The Court has to see as to whether from perusal of the FIR, any offence is made out or not.
7. I have gone through the FIR. The informant has stated in the FIR that he had a business relationship with M/s Kameshwar Alloys & Steel Pvt. Ltd., Gola. He submits that the petitioner is the director of M/s Kameshwar Alloys. It is further stated that he was having business transaction with the accused persons since the year 2010 till January-2015. He stated that 40 pieces of Oxygen Cylinder and 26 pieces of commercial Gas Cylinder have been kept by the petitioner, which have not been returned. The value of the materials would be Rs.6,60,000/-. He also submits that neither the amount has been paid nor the cylinders have been returned. This is the sum and substance of the written report, on whose basis, FIR has been registered.
8. From perusal of the aforesaid written report, it is clear that there was business relationship between the parties. This business relationship continued from the year 2010. The materials were kept by the petitioner, valued at Rs.06,60,000/-. It is the case of the informant that the said amount has not been paid to him by the petitioner. FIR has been registered under section 406, 420 and 34 IPC.
9. Section 406 IPC prescribes punishment for criminal breach of trust. Criminal breach of trust is defined under Section 405 IPC, which reads as under.
"405. Criminal Breach of Trust- Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or wil
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