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2009 Supreme(Ori) 115

2009 (I) OLR — 826
B.K. PATEL, J.
Lilasons Breweries Limited and another...Petitioners
Versus
Sujata Manjari Pati...Opp. Party
CRLMC No.1253 of 2008
Decided on 27th March, 2009.

Advocates:
For Petitioners:M/s. Ashok Ku. Das, D. P. Pradhan, R. Mohapatra, K. K. Sahoo, S. K. Sahoo and S. Padhy
For Opp. Party:M/s. Ulash Ch. Mohanty, S. Mohanty, S. K. Behera and B. Ganthia

Headnote:1. PENAL CODE, 1860 - Secs. 420 and 406 - Cr.P.C. - Sec. 482 - Cognizance of offence under Sec. 420 and 406, IPC and issuing summons to petitioners - Quashing of - Existence of dishonest intention is one of the essential ingredients of offence of cheating punishable under Sec. 420, IPC as well as misappropriation punishable under Sec. 406 IPC - Discussing the facts, contention and findings held, in absence of any material on record or even any allegation to the effect that the accused persons fraudulently or dishonestly deceived, or dishonestly misappropriated or converted to their own use or used, or disposed of any amount, the impugned order of taking cognizance is found to have passed without application of mind - Continuance of the proceeding would amount to abuse of process of Court - To secure ends of justice the impugned order as well as the criminal proceeding are liable to be quashed.

       (Para - 6)

       2. CRIMINAL PROCEDURE CODE, 1973 - Sec. 202 (1) - Mandatory on the part of the Magistrate to postpone the issue of process against the accused in a case where the accused is residing beyond the area in which the learned Magistrate exercise his jurisdiction and to either enquire into the case himself or direct an investigation to be made by a police officer or by such other person as he thinks fit, for the purpose of deciding whether or not there is sufficient ground for proceeding. (Para - 5)

JUDGMENT

B.K. PATEL, J. — Petitioners, who are the accused persons in I.C.C. No.11 of 1993 of the Court of learned S.D.J.M., Bhuba¬neswar instituted by the opposite party-complainant, have made prayer in this application under Section 482 Cr.P.C. to quash the order dated 12.3.2007 taking cognizance of offences under Sec¬tions 420 and 406 I.P.C. and issuing summons to the petitioners.

2. Case of the opposite party-complainant is that accused No.1 is a registered company engaged in manufacture and sale of breweries in the brand name of “Khajuraho Super Strong Lager Beer: and accused No.2 is the Managing Director of the Company. The company is situated and the opposite party No.2 is residing at Bhopal in the State of Madhya Pradesh. They entered with an arrangement with the complainant by letter dated 24.12.2000 for the purpose of marketing and sales promotion of their product through the Orissa State Beverage Corporation. As per the ar¬rangement, the complainant was to deposit Rs.24 lakhs with the accused persons as security deposit which was to be refunded within 20 days from the date of termination of the agreement along with any other dues payable to the complainant. As per the agreement/arrangement the complainant is to receive commission at the rate of Rs.28/- on sale of each case of beer. As required by the accused persons the complainant deposited Rs.24 lakhs through bank draft. In between 2000-01 to 2004-05 the complainant carried out marketing and sales promotion entitling her to receive Rs.30,38,000/- as commission. However, she is yet to receive Rs. 8,15,375/- out of the commission due to her. As the accused persons discontinued supply of products to Orissa, the complain¬ant decided to withdraw from the arrangement and accordingly intimated the accused No.1. Accused No.1 remitted Rs.13 lakhs on 7.12.2005 towards refund of security deposit. On 9.12.2005 the complainant sent a letter to accused No.2 demanding refund of balance amount of Rs.19,15,375/- i.e. balance security of Rs.11 lakhs and balance commission of Rs.8,15,375/-. It is alleged that accused No.1 sent letter dated 31.12.2005 admitting the claim of the complainant but expressed inability to pay the amount on the ground that dues from Orissa State Beverage Corporation have not been received. The complainant sent a lawyer’s notice on 16.6.2006 to which the accused persons sent reply dated 5.7.2006 stating that balance claim amount of Rs.11 lakhs would be paid soon after the amount is refunded by the Orissa State Beverage Corporation. In the background of such factual averments it is alleged in the complaint petition that the accused persons in¬duced the complainant to accept the promotionship of their product as it was lucrative in the market and as per their in¬ducement the complainant had deposited Rs.24 lakhs with the Orissa State Beverage Corporation. However, with ulterior motive accused persons stopped payment of the balance security of Rs.11 lakhs and commission amounting to Rs.8,15,375/- for which they are liable to be proceeded for commission of offences of cheating under Section 420 I.P.C. and misappropriation under Section 406 I.P.C. On receipt of the complaint petition on 7.2.2007 learned S.D.J.M., Bhubaneswar posted the case to 26.2.2007 for recording of initial statement of the complaint. On 26.2.2007 complainants initial statement was recorded and the case was posted for en¬quiry to 12.3.2007 on which date the case was adjourned for enquiry to 20.3.2007. On 20.3.2007 the complainant declined to adduce any evidence in the enquiry and the case was posted for order on 21.3.2007 when the impugned order was passed.

3. In assailing the legality of the impugned order learned counsel for the petitioners raised two contentions. Firstly, it was contended that as the petitioners accused persons resided at a place beyond the area in which the learned S.D.J.M. Bhubaneswar exercises his jurisdiction, issue of processes against the ac¬cused persons without





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