IN THE HIGH COURT OF JHARKHAND AT RANCHI
Sanjay Kumar Dwivedi, J.
Mukesh Kumar Sinha, S/o. Shri Gopi Krishna Sinha - Petitioner
Versus
The State of Jharkhand, Anr. - Opposite Parties
Cr. M.P. No. 3227 of 2017
Decided On : 11-07-2022
Quashing of Criminal Proceedings - Agreement - Indian Penal Code - Section 406, 420 - Consumer Protection Act - Forum Shopping
Fact of the Case:
The petitioner filed a petition to quash the order taking cognizance against the petitioner under Section 406 and 420 of the Indian Penal Code in connection with a case related to an agreement for purchase of a Duplex.
Finding of the Court:
The court found that the case arose from an agreement for the purchase of a Duplex and that the opposite party had already filed a consumer case under the Consumer Protection Act. The court also emphasized the disapproval of settling civil disputes through criminal prosecution and the distinction between breach of contract and cheating as a criminal offense.
Issues: The issues involved the quashing of criminal proceedings based on an agreement, the approach to consumer cases, and the distinction between civil disputes and criminal offenses.
Ratio Decidendi: The court decided to quash the criminal proceedings, citing the abuse of process of law and the disapproval of settling civil disputes through criminal prosecution.
Final Decision: The court allowed the petition and quashed the entire criminal proceedings, while making it clear that the decision did not opine on the merit of the civil proceeding.
JUDGMENT :
1. Heard Mr. Navneet Sahay, learned counsel for the petitioner, Mr. Rakesh Ranjan, learned counsel for the State and Mr. Sanjay Kumar, learned counsel for opposite party no.2.
2. This petition has been filed for quashing the order dated 08.04.2016 whereby cognizance under Section 406 and 420 of the Indian Penal Code has been taken against the petitioner in connection with Ormanjhi P.S. Case No. 104/2015 corresponding to G.R. No.3431/2015, pending in the court of the learned Judicial Magistrate, 1st Class at Ranchi.
3. The informant lodged the FIR alleging therein that the informant in the year 2009 entered into an agreement with one Samridhi Creative Pvt. Ltd. for the purpose of having purchase of a Duplex in the project 'Rainbow 7' which was under construction. The informant gave Rs.18,90,000/- to one Mr. Rohan Kumar. Subsequently, the informant learnt that the entire work and responsibility of construction and bonafide ownership has been shifted on the shoulders of one Mr. Mukesh Kumar Sinha. It was further alleged that the informant has been asking for the possessions of that flat since long and the accused person is not giving the possession of the Duplex.
4. Learned counsel for the petitioner submits that opposite party no.2 entered into an agreement with Samridhi Creative Pvt. Ltd. for purchase of Duplex and subsequently that firm was taken over by this petitioner. He further submits that out of Rs.21,90,000/-, the amount of Rs.18,90,000/- was paid to earlier owner of the company and subsequently only Rs.3 Lakhs has been paid to this petitioner, who was handed over the work and responsibility of the firm in question, later on. He also submits that the complex has already been completed and for certain remaining work, this case has been filed. He further submits that the case is arising out of an agreement and if there is breach of an agreement, opposite party no.2 was required to file specific performance suit before the competent court, however criminal case has been filed. He also submits that the petitioner has already filed Consumer Complaint Case No.51/2015 before the Consumer Forum, Ranchi. On this background, he submits that entire criminal proceeding may be quashed by this Court.
5. Mr. Sanjay Kumar, learned counsel for opposite party no.2 submits that the petitioner has already taken the liability of the said firm and that is why the petitioner is liable to complete the entire work.
6. The Court has gone through the materials on the record and finds that the case is arising out of an agreement for purchase of Duplex/flat and for non-completion of certain work, this case has been filed. Opposite party no.2 has already filed a consumer case under the Consumer Protection Act. It is well settled that once forum is instituted, the parties are required to follow the statute of that forum and the forum cannot be practiced as shopping centre. A classic example of forum shopping is when litigant approached one Court for relief but does not get the desired relief and then approached another Court for the same relief. A reference may be made to the judgment rendered by the Hon'ble Supreme Court in the case of Vijay Kumar Ghai & others v. State of West Bengal & others, reported in 2022 SCC OnLine SC 344. Paragraphs 33 and 36 of the said judgment are quoted herein below:
“33. Predominantly, the Indian Judiciary has time and again reiterated that forum shopping take several hues and shades but the concept of ‘forum shopping’ has not been rendered an exclusive definition in any Indian statute. Forum shopping as per Merriam Webster dictionary is: —
“The practice of choosing the court in which to bring an action from among those courts that could properly exercise jurisdiction based on determination of which court is likely to provide the most favourable outcome”
36. Forum shopping has been termed as disreputable practice by the courts and has no sanction and paramountcy in law. In spite of this Court condemning the practice
AI
The central legal point established is the disapproval of settling civil disputes through criminal prosecution and the distinction between breach of contract and cheating as a criminal offense.
A mere breach of contract does not constitute a criminal offence under IPC without evidence of fraudulent intent; the matter remains civil, permitting the aggrieved party to seek redress through civi....
A breach of contract does not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction.
Once a forum is chosen, the parties are not allowed to choose a new forum, and the nature of the case should be considered before initiating criminal proceedings.
The main legal point established in the judgment is that if criminality is made out, civil and criminal cases can proceed simultaneously.
Criminal proceedings should not be used as an instrument of harassment or for seeking private vendetta.
The main legal point established in the judgment is that a criminal proceeding can be quashed if it is manifestly attended with mala fide and maliciously instituted with an ulterior motive.
The central legal point established in the judgment is the requirement for prima facie evidence of criminal intent before taking cognizance of a case and the relevance of contractual obligations in d....
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