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2023 Supreme(P&H) 2596

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMAN CHAUDHARY, J.
Naurati Lal – Petitioner
Versus
State of Haryana & Anr. – Respondents
CRM-M NO. 13042 of 2008 (O&M)
Decided On : 21-02-2023

Advocates Appeared:
Ms. Vibhuti Narania, Advocate and Mr. Vishal Pundir, Advocate; For the Petitioners
Ms. Aditi Girdhar, AAG, Haryana.
Mr. Divay Sarup, Advocate for Respondent No.2.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Quashing of FIR - The petitioner sought to quash FIR No.336 under Sections 406, 420, 500, and 506 IPC related to installation and service issues of air conditioning equipment - The allegations were deemed insufficient to constitute a criminal offense, primarily concerning civil nature and contract violations - The court emphasized that merely alleging criminal intent without evidence does not suffice for prosecution. (Paras 6, 10, 14, 18, 22)

(B) Criminal Proceedings - Abuse of process - Criminal proceedings cannot be instituted merely to harass an accused when issues primarily arise from contractual disputes - The High Court's inherent powers may intervene to prevent such abuses. (Paras 7, 18, 21)

Facts of the case:
The petitioner was accused of improper installation of air conditioning equipment leading to a criminal complaint for cheating and intimidation; the complainant initially sought resolution through civil channels under the Consumer Protection Act but shifted to criminal complaint without completing the civil suit process.

Findings of Court:
The FIR was quashed due to a lack of evidence indicating fraudulent intention or dishonest actions by the petitioner, proper jurisdiction under Section 482 was exercised.

Issues: Whether the allegations in the FIR constitute a criminal offense or are purely civil matters.

Ratio Decidendi: It is essential that allegations substantiate criminal conduct; mere contractual disputes are insufficient for criminal prosecution, stressing the need for evidence of fraudulent or dishonest intention at the transaction's inception.

Result: Petition allowed; FIR quashed.

Table of Content
1. allegations regarding installation and service deficiencies. (Para 1 , 2 , 20)
2. arguments on criminal liability vs. civil issues. (Para 4 , 5)
3. court's power to quash fir under section 482 crpc. (Para 6 , 7 , 8)
4. safeguarding against misuse of criminal law for civil disputes. (Para 9 , 10 , 11)
5. distinction between breach of contract and criminal cheating. (Para 12 , 13 , 14 , 15)
6. elements of criminal intimidation defined. (Para 16 , 17)
7. standard for quashing proceedings to prevent abuse of court. (Para 18 , 19)
8. categorical parameters for quashing power of high court. (Para 21)
9. final order quashing the fir and all proceedings. (Para 22)

JUDGMENT

Aman Chaudhary, J.

The present petition under Section 482 Cr.P.C. has been filed for quashing of FIR No.336 dated 08.07.2005, registered under Sections 406 , 420, 500 and 506 IPC at Police Station Civil Lines, Karnal and the consequential proceedings arising therefrom.

2. Briefly put, the allegations as made in the complaint is that the air condition was installed by the petitioner in the building of the complainant after causing harassment to him i.e. not settled within the time frame and even the entire work was not completed. The safety control was connected and thereafter, connected with the compressor directly with malafide intention to cause harm to the complainant's building. The warranty card was also not supplied.

3. Initially, respondent No.2 had filed a complaint under section 12 of the Consumer Protection Act to which, the petitioner filed written statement, Annexure P-2, whereafter the same was withdrawn by him vide Annexure P-3 after pursuing the same for 2 years, with liberty to file a civil suit. Besides the aforesaid, he also filed a criminal complaint dated 15.06.2005, Annexure P-4 under Section 156(3) Cr.P.C. before the Chief Judicial Magistrate, Karnal, upon which, FIR No.336 dated 08.08.2005 was registered under Sections 406 , 420, 500, 506 IPC at Police Station Civil Lines, Karnal against the petitioner and the Managing Director of Blue Star limited, with same very allegations as averred in the complaint. The final report under Section 173 Cr.P.C. was presented in the Court on 10.10.2006, whereby Mathew Varghese, working as Deputy General Manager of M/s Blue Star Ltd was not challaned, whereas the petitioner being the installer was challaned. Consequently he was wrongly charge-sheeted vide order dated 18.09.2006 by the learned trial Court.

4. Learned counsel has contended that the challan was submitted without any basis. It is apparent that the virtually the entire complaint was reproduced in the final report submitted by the police. No evidence had been collected to substantiate the ingredients of the offences. He submitted that the complainant initially filed a complaint before the Consumer Form with regard to the deficiency in service, which was dismissed as withdrawn and liberty to file a civil suit within a period of two months from the date of withdrawal of the said complaint, however, instead of filing the civil suit, for which he was granted liberty, the complainant filed a criminal complaint. The allegation primarily made against the petitioner pertains to deficiency in service regarding installation of the Air-conditioning plant which is purely a matter of civil nature being an execution of a contract but has been given a criminal colour only to harass and pressurize the petitioner. Thus the proceedings are unjust, unfair and by way of an abuse of the process of law, there are no allegations that right from the beginning of the transaction the petitioner had any dishonest intention of cheating. Still further there is no evidence with regard to any offence under Section 506 IPC. To bolster his submissions, he has placed reliance on the judgment of this Court in case titled as Kuljive Mahajan v. State of Haryana and another, CRM-M- 18224-2014, decided on 18.10.2022.

5. On the other hand, learned counsel for respondent No.2 has

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