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2025 Supreme(Mad) 4321

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.Nirmal Kumar, J.
Shibu K - Petitioner
Versus
C.S.Padam Chand And Ors. - Respondents
Crl.R.C.No.1422 of 2024 and CRLM.P.No.12004 of 2024
Decided On : 31-01-2025


Advocates:
Advocate Appeared:
For the Petitioner: Mr.N.Manokaran
For the Respondent: Mr.C.P.Sivamohan, Mr.A.Damodaran, Additional Public Prosecutor

Suppression of material facts in legal proceedings renders orders obtained non est in law, emphasizing the need for transparency in judicial processes.

Headnote:(A) Criminal Procedure Code, 1973 - Section 156(3) - Order by Metropolitan Magistrate directing investigation into a complaint - Petitioner, a film producer, alleges fraudulent agreements and seeks to quash the order allowing investigation into the complaint filed by the first respondent - The court found that the complaint was filed with suppression of material facts and was merely a commercial dispute dressed as a criminal matter. (Paras 6, 16)

(B) Judicial Procedure - The court emphasized that suppression of facts in legal proceedings undermines the integrity of judicial process, and orders obtained under such circumstances are non est in law. (Paras 8, 16)

Facts of the case:
The petitioner produced a film and entered into distribution agreements, but the first respondent claimed unpaid dues, leading to a series of legal actions including a complaint for fraud.

Findings of Court:
The court determined that the first respondent did not disclose crucial information regarding ongoing criminal proceedings and that the complaint was an attempt to criminalize a commercial dispute.

Issues: The main issues were the validity of the complaint under Section 156(3) and whether the first respondent suppressed material facts.

Ratio Decidendi: The court ruled that the order allowing investigation was flawed due to the suppression of facts by the first respondent, affirming that such conduct cannot be condoned in judicial proceedings.

Result: Criminal Revision Case allowed, and the order dated 23.07.2024, was set aside.

ORDER :

M.Nirmal Kumar, J.

The Criminal Revision Case is filed against the order, dated 23.07.2024, in Crl.M.P.No.17288 of 2024, passed by the learned Metropolitan Magistrate For Exclusive Trial of CCB Cases (Relating to Cheating Cases in Chennai) and CBCID Metro Cases, Egmore, Chennai- 08.

2. Mr.N.Manokaran, the learned counsel appearing for the petitioner would submit that the petitioner is a Film Producer. In 2018, he produced a film titled, 'Saamy 2,' directed by Hari and acted by Vikram. He invested a lot for the production of the said film. Thereafter, he gave area wise distribution right to various distributors who approached him to buy the film. The petitioner gave Chengalpat area to one M/s.Volmart rep. by Mr.Sai Baba for the consideration of Rs.6,00,00,000/-. For that purpose, a Minimum Guarantee Agreement, dated 27.08.2018, was executed with him. The 1st respondent also entered into a Minimum Guarantee Agreement, dated 05.09.2018, with the petitioner's Thameems Films for distribution of “Saamy 2” in Chennai City area. Similarly, the petitioner entered into an agreement dated 20.09.2018 with C.S. Padam Chand by giving him distribution right of the said film for the areas of Coimbatore, Erode, Nilgiris and Tiruppur District for Rs. 4.50 crores, and 1st respondent paid Rs. 2,00,00,000/- only. He failed to pay the balance Rs.2,50,00,000 as agreed under the said agreement. The petitioner is not having a copy of the said agreement, since it was signed during late night on 20.09.2018 and retained by the 1st respondent.

3. The petitioner submits that later, he demanded the outstanding dues from the 1st respondent in person and by e-mail. While so, M/s. HR Pictures produced a film titled as 'Thugs' acted by the petitioner's son as a hero. On smelling that, the 1st respondent appears to have issued a Notice for Arbitration, dated 18.02.2023, to the petitioner's previous office address, which was closed in April, 2019 itself, wherein the 1st respondent referred Clause 17 of the bogus Temporary Transfer of Copy Rights Agreements, dated 20.09.2018. It was not served on the petitioner due to wrong address given by the 1st respondent. In order to prevent the release of the film 'Thugs', the 1st respondent filed O.A. Nos.130 and 131 of 2023 before this Court against the petitioner, projected two different fraudulent Temporary Transfer of Copy Rights Agreements, dated 20.09.2018. In which, he prayed for an order of interim injunction restraining the petitioner from releasing the film 'Thugs'. This Hon'ble Court was pleased to grant an order of exparte ad interim injunction on 21.02.2023. Immediately, after receipt of the notice, the petitioner filed a counter affidavit inter alia disputing the agreement dated 20.09.2018 relied upon by the 1st respondent, as forged and Impersonated.

4. The petitioner's wife Mumthas Muhammad, Managing Partner of M/s. HR Pictures filed Application Nos.70 and 71 of 2023 to Implead herself and also to vacate the order of interim injunction dated 21.02.2023 made in O.A. Nos.130 and 131 of 2023 and the said petitions were allowed on 23.02.2023. Aggrieved against, the 1st respondent filed OSA (CAD) No.18 of 2023 before the Division Bench and conditional orders have been passed. Subsequently, the Division Bench was pleased to pass an order dated 14.03.2023, by partly allowing OSA(CAD)No.18 of 2023 on 24.03.2023, and directed the parties to go before the Arbitrator. Pursuant to the order dated 27.07.2023 in Arb.O.P. (Com. Div) No.319 of 2023, this Court was appointed The Hon'ble Mr.Justice V.Bharathidasan, as the sole Arbitrator. Soon after receiving the interim injunction order dated 21.02.2023, the petitioner came to know the fraudulent creation of the document dated 20.09.2018 containing Arbitration Clause. Immediately, the petitioner gave a complaint dated 13.03.2023 to the 2nd respondent, who in turn, forwarded the complaint to the SHO, Valasaravakkam PS. The Inspector enquired forwarded the petitioner's comp

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