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2023 Supreme(Ori) 266

IN THE HIGH COURT OF ORISSA AT CUTTACK
G.SATAPATHY, J.
Babi Panda – Appellant
Versus
State of Orissa and Another – Respondents
CRLMC No. 1897 of 2016
Decided On : 20-03-2023

Advocates Appeared:
For the Appellant : C.A. Rao
For the Respondent: S.S. Pradhan

A complaint under Section 156(3) must be supported by an affidavit; failure to provide it can lead to quashing of criminal proceedings based on insufficient evidence.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Indian Penal Code, 1860 - Sections 406 and 420 - Quashing of criminal proceedings - Allegations of cheating and misappropriation concerning Chit Fund Scheme - Absence of supporting affidavit for complaint filing led to procedural deficiencies, warranting quashing of proceedings - None of the materials established the mens rea or intent to defraud necessary for charges of cheating or breach of trust. (Paras 8 and 9)

Facts of the case:
The petitioner initiated a Chit Fund Scheme, but a participant claimed she was not compensated after contributing. Complaint led to police registration for IPC offences. Petitioner sought to quash the proceedings, asserting lack of legal basis.

Findings of Court:
Complaint lacked proper affidavit and prima facie evidence of fraud or misappropriation, leading to the conclusion that the proceedings were an abuse of court process.

Issues: Were the allegations sufficient to constitute an offence under IPC sections cited?

Ratio Decidendi: Procedural deficiencies in the initiating complaint and absence of evidence supporting the claim of intent to defraud warranted quashing of proceedings.

Result: Criminal proceedings quashed.

Table of Content
1. background of the complaint against the petitioner. (Para 1 , 2)
2. arguments regarding the validity of the complaint. (Para 3 , 4)
3. court's observations on procedural validity. (Para 5 , 6)
4. establishment of the legal principles for quashing. (Para 7 , 8)
5. conclusion on quashing the criminal proceedings. (Para 9)

JUDGMENT :

G. SATAPATHY, J.

1. The petitioner by way of this application U/S.482 of Cr.P.C. prays to quash the entire criminal proceeding initiated against her in G.R. Case No.233 of 2012 arising out of Rayagada P.S. Case No.92 of 2012 as a sequel of complaint in 1.C.C. No.30 of 2011 pending in the file of learned S.D.J.M., Rayagada.

2. The background of facts in precise are the petitioner, according to O.P.No.2, started a private Chit Fund Scheme of a group of 20 persons including O.P.No.2 and, accordingly, each of the group members was to deposit a sum of Rs.5,000/- (Rupees Five Thousand) per month and there would be a monthly draw in which the highest bidder would take the amount so deposited by all the 20 members and the tenure of the scheme would be one year. The scheme accordingly ran and O.P.No.2 was regularly paying Rs.5,000/- (Rupees Five Thousand) only per month to the petitioner towards the installment of the scheme and the petitioner was also receiving the said sum by entering the fact in a small book supplied to O.P.No.2 and, in the process, O.P.No.2 paid a sum of Rs.90,000/- (Rupees Ninety Thousand) only with effect from 20.02.2009 till 30.07.2010, but O.P.No.2 never took part in the monthly draws as she wanted to take up the total amount of Rs.1,00,000/- (Rupees One Lakh) for utilizing the same for the marriage of her daughter. While the matter stood thus, the petitioner got transferred from Rayagada to Gunupur as she was working as a Junior Clerk (Government Servant) and, thereby, she acknowledged her liability to pay Rs.1,85,500/- (Rupees One Lakh Eighty Five Thousand and Five Hundred) to O.P.No.2 and one Padma Swain at the time of her transfer, but she subsequently did not pay that amount. On being aggrieved, O.P.No.2 filed a complaint against the petitioner in 1.C.C. No.30 of 2011 before the learned S.D.J.M., Rayagada, who by an order sent the complaint to Police U/S.156(3) of Cr.P.C., which was accordingly registered vide Rayagada P.S. Case No.92 dated 11.06.2012 for offences U/Ss.406/420 of IPC paving the way for investigation in this case which culminated in submission of charge-sheet against the petitioner for offence U/Ss.406/420 of IPC under which the learned S.D.J.M., Rayagada took cognizance and issued summons against the petitioner. In the above backdrop, the petitioner challenges her implication in this case by praying to quash the entire criminal proceeding initiated against her in this application U/S.482 of Cr.P.C.

3. In the course of hearing the CRLMC, Mr. C.A. Rao, learned counsel for the petitioner by relying upon the decision in the case of Anil Kumar Agarwalla @ Mandothia Vs. State of Odisha and another , 2023 (1) OLR 389 and Vitla Venkata Rao and others Vs. Suttapalli Venkata Rao , 1983 CLR 80 submits inter-alia that the complaint sent to police station without being supported with an affidavit, is not at all entertainable by the police and the very inception of the complaint to be registered as a Rayagada P.S. Case No.92 of 2012 is not maintainable in the eye of law and on that score, it is required to be quashed. It is further submitted by him that in Vitla Venkata Rao (supra) which is a similar matter, this Court however, had quashed the proceeding on the ground no offence is being made out against the petitioner.

4. On contrary, Mr. S.S. Pradhan, learned AGA, however, submits that the materials on record definitely disclose the ingredient of offence and, thereby, the criminal proceeding initiated against the petitioner cannot be quashed. None appears for the O.P.No.2 despite being duly noticed as confirmed in postal tracking report.

5. In addressing the rival c

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