ORDER :

In this criminal miscellaneous petition, the petitioner has prayed for quashing the First Information Report, registered as Bokaro Steel City Police Station Case No.321 of 2018 for offences alleged under Sections 420, 406, 506 and 34 of the Indian Penal Code.

2. After hearing the parties at length, order was reserved in this case on 22.02.2021.

3. Counsel for the petitioner submitted that by no stretch of imagination, a criminal offence is made out, which would be apparent from bare perusal of the First Information Report. He submits that a business transaction has been given color of a criminal case. He further submits that the parties agreed to invest in a joint venture business. Sharing of the profit or loss cannot come within the purview of a criminal offence. He submits that in view of the proposition of law settled by the Hon’ble Supreme Court in the case of State of Haryana & Others versus Bhajan Lal & Others, reported in 1992 Supp(1) SCC 335, no offence is made out, thus, the First Information Report needs to be quashed.

4. Counsel for the opposite party No.2 and the counsel for the State submits that the informant has been cheated. He was induced to invest in the business and thereafter the petitioners misappropriate the funds and committed breach of trust. It has been stated that no profit from the distribution of rights of films was provided to the complainant, which itself is an offence.

5. I have gone through the First Information Report. The First Information Report has been instituted by the opposite party No.2, stating therein that this petitioner, who is the owner of PEN Films, met the complainant along with one Pawan Sharma, owner of PUN Films. On their convincing, the complainant paid Rs.10 lakh as advance to start a movie “Wah Taj” with 50% share holding in the film. An agreement was signed and thereafter the complainant states in the complaint that he was forced to pay Rs.2.25 crore in the name of expenses in shooting the film as 50% of the shooting was complete in February 2013 itself. It has been alleged that despite asking for reconciliation of accounts, no details were provided, rather, Rs.1.15 crore was further extracted from the complainant. Further, in April, 2014, an agreement was signed between Spider Wave Films, PUN Films and PEN Films, having hare holding of 45%, 45% and 10% respectively (be it noted that Spider Wave Films belongs to the complainant). It is stated that further Rs.30 lakh was paid by the complainant to get subsidy from the Uttar Pradesh Government. Complainant, thereafter, found that the film was completed only spending Rs.2.50 crore, thus, the petitioner and others have defalcated a huge amount, which was invested by the informant. It has been stated that the subsidy amount was also defalcated and the profit was not distributed to the complainant. It has been mentioned that Rs.20 crore was defalcated. Lastly, the complainant states that whenever he goes to the office of PEN Films or PUN Films, the accused threatens to kill him.

6. From the aforementioned facts narrated in the First Information Report, I find that there was a business agreement between the parties and the informant’s company was 45% share holder. Admittedly, there was an agreement between the parties. The said agreement is a part of the First Information Report and is on record. From the agreement, it is clear that all the parties, i.e., PUN Films Pvt. Ltd., Spider Wave Films (informant’s company) and PEN Films entered into an agreement for making a film titled as “Wah Taj”. From the agreement, I find that the petitioner, who is one of the directors, approached the assignee, i.e., PEN Films to invest money in marketing and distribution of films. Thus, it is the informant, who has approached the accused to invest money as PEN Films is the organization of the accused. In view of the aforesaid admitted fact, which is part of the First Information Report, itself, it cannot be said that the petitioner has induced th