The main legal point established in the judgment is that the court cannot quash a complaint at a premature stage of investigation and must consider all the circumstances before concluding the culpability of the accused.

This petition has been filed seeking to call for the records in Crime No.602 of 2011 on the file of the 1st respondent-police and to quash the same.

2. The petitioner herein is the accused in the case in Crime No.602 of 2011 registered by the 1st respondent-Police for the alleged offence under Section 420 IPC. The complaint was lodged by the 2nd respondent herein/defacto-complainant as against the petitioner herein alleging that the petitioner herein had cheated him by grabbing the property worth about Rs.70 lakhs.

3. The averments in the complaint given by the 2nd respondent/defacto-complainant are as follows:-

3(a). The 2nd respondent herein / defacto-complainant is running a company involved in manufacturing baniyans. The defacto-complainant used to borrow loan very often from the petitioner herein for his urgent business needs. On 20.02.2009 the defactocomplainant borrowed a sum of Rs.1,25,000/-as loan from the petitioner herein. The petitioner herein, after adjusting a sum of Rs.2,000/-towards interest, advanced a sum of Rs.1,23,000/- as loan to the defacto-complainant. Further, as security for the said loan amount, the 2nd respondent/defacto complainant has handed over title deeds of the property owned by his mother Rasambal worth about Rs.15 lakhs, apart from executing a pro-note signed by his mother. The defacto-complainant has also handed over six signed blank papers, two signed twenty rupees stamp papers as additional security to the said loan. The defacto-complainant paid a sum of Rs.22,500/-to the petitioner herein towards interest from 01.03.2009 to 31.05.2009 in respect of the said loan amount.

3(b). Once again, on 26.05.2009 & 28.05.2009 the defactocomplainant has received another sum of Rs.9,93,000/-from the petitioner herein as a loan and as security for the said loan amount, the defacto-complainant executed a sale deed in favour of the petitioner's wife viz., Thamizh Selvi, in respect of his property worth about Rs.60 lakhs, besides giving four signed twenty rupees stamp papers, twelve signed blank papers, two pro-notes and two cheques signed by him bearing No.482481 & 482482 drawn on HDFC Bank. The defacto-complainant has paid a sum of Rs.5,04,000/- towards interest at the rate of Rs.36,000/-per month, for the loan amount of Rs.9,93,000/- between 01.06.2009 to 31.07.2010. That apart, the defactocomplainant has also paid another sum of Rs.82,000/-towards the expenses for the execution of the sale deed in favour of the petitioner's wife and also to transfer the name in the revenue records. Further, as a security for the said loan amount, the respondent/defacto complainant issued 2 blank cheques singed by him. The defacto complainant has also handed over 4 signed stamp papers, 12 signed blank papers, 2 pro-notes in favour of the petitioner. In spite of the security furnished by the defactocomplainant, the petitioner herein pressurised the defacto-complainant to pay the entire balance amount of Rs.12 lakhs immediately.

3(c). Hence, the respondent/defacto-complainant had handed over the title documents of his property worth about Rs.70 lakhs owned by him and asked the petitioner to sell the said property and requested the petitioner, after appropriating a sum of Rs.12 lakhs towards the loan amount from the sale consideration, to pay the balance amount to him. The petitioner herein had also agreed for the same. Hence, on 27.07.2010 the defactocomplainant has also given a Power of Attorney in favour of the petitioner. But, the petitioner herein in order to cheat the defacto-complainant with a mala fide intention sold the property worth about Rs.70 lakhs, only for a meagre amount of Rs.10 lakhs to one Saravanan and threatened the petitioner to pay another sum of Rs.22 lakhs towards the balance loan amount, stating that if the defacto-complainant fails to pay the said amount, he would take action against him by using the blank papers and other stamp papers, which were signed & handed over by the defacto-comp