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IN THE HIGH COURT OF ORISSA AT CUTTACK
CHITTARANJAN DASH
Pravakar Samanta – Appellant
Versus
State of Odisha – Respondent
| Table of Content |
|---|
| 1. factual background of dispute and fraud claim. (Para 1 , 2 , 3 , 4) |
| 2. arguments regarding maintainability and fraud allegations. (Para 5 , 6) |
| 3. court analysis on retention and contractual nature. (Para 7 , 8 , 9 , 12 , 13) |
| 4. legal standards for quashing proceedings. (Para 10 , 11) |
| 5. interim order for release of funds. (Para 14 , 15) |
Judgment :
Chittaranjan Dash, J.
1. By means of this application, the Petitioner seeks to quash the order the order dated 04.01.2021 passed by the learned S.D.J.M., Bhubaneswar in C.T. No.4259 of 2019 and judgment dated 19.03.2021 passed by the learned Addl. Sessions Judge-cum- Special Judge, CBI-II, Bhubaneswar in Criminal Revision No.22 of 2021.
2. In the aforesaid order and judgment, the learned court below declined to release the sum of Rs.30,00,000/- deposited in the form of Standby Letter of Credit (SBLC) with the banker of the accused Opposite Party i.e. State Bank of India, Commercial Bank, IDCOL House, Ashok Nagar, Bhubaneswar as against the security for awarding proposed dealership of retail outlet for Indizel and products purported to have been seized in connection with the investigation of the case in CID Crime Branch P.S. Ca
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.
Point of law: Criminal cases involving offences which arise from commercial, financial, mercantile, partnership or similar transactions with an essentially civil flavour may in appropriate situations....
A civil dispute regarding loan recovery cannot form the basis for criminal proceedings; hence, such proceedings should be quashed to prevent judicial abuse.
Settlement of monetary disputes does not automatically justify the quashing of criminal proceedings in cases involving serious allegations of criminality.
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