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IN THE HIGH COURT OF ORISSA AT CUTTACK
CHITTARANJAN DASH
Sudhamayee Das – Appellant
Versus
State of Orissa – Respondent
| Table of Content |
|---|
| 1. petitioner requests to quash fir and proceedings. (Para 1 , 2) |
| 2. petitioner claims dispute is civil, not criminal. (Para 3 , 4) |
| 3. petitioner argues improper actions by the bank. (Para 5 , 6) |
| 4. covenant in mortgage bond does not indicate criminality. (Para 7) |
| 5. court quashes fir, stating civil nature of the dispute. (Para 8) |
JUDGMENT :
Chittaranjan Dash, J.
1. By means of this application, the Petitioner seeks to quash the FIR under Annexure-1 and the further proceeding in G.R. Case No.468 of 2015 pending before the learned S.D.J.M., Karanjia.
2. The background facts of the case are that the Petitioner had availed a cash credit loan of Rs.47.00 lakhs and Term Loan of Rs.57.00 lakhs, thus a total loan of Rs.1.04 Crores, from the Mayurbhanj Central Co-operative Bank Ltd., Karanjia Branch for installation of a cold storage under the name and style of M/s. Allied Cold Storage Pvt. Ltd. The Petitioner in order to create the loan furnished landed properties with building as collateral security besides mortgaging the plant and machineries in favour of the Bank. The Petitioner, being the Managing Director of the cold storage, executed necessary bonds In this regard to secure
A civil dispute regarding loan recovery cannot form the basis for criminal proceedings; hence, such proceedings should be quashed to prevent judicial abuse.
Redundant criminal proceedings should not be allowed to continue.
The High Court held that funds retained as a result of a failed contract should be released when criminal proceedings are improperly employed in a civil dispute.
A breach of contract does not constitute cheating unless fraudulent intent is proven at the outset of the agreement, as established in relevant legal precedents.
The absence of fraudulent intention at the inception of a transaction negates charges of cheating under Section 420 of the IPC, distinguishing civil disputes from criminal offences.
Settlement of monetary disputes does not automatically justify the quashing of criminal proceedings in cases involving serious allegations of criminality.
When a complaint is sought to be quashed, it is permissible to look into the materials to assess what the complainant has alleged and whether any offence is made out even if the allegations are accep....
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