Civil disputes can escalate into criminal offences if evidence of dishonest intention or misrepresentation is present; mere non-payment does not absolve criminal liability.

JUDGMENT

Mr. Rajbir Sehrawat, J. (Oral)

The present petition has been filed under Section 438 Cr.P.C., seeking anticipatory bail in case FIR No.201 dated 09.10.2023, registered under Sections 406, 420 and 120B IPC, at Police Station Gobindgarh Mandi, District Fatehgarh Sahib.

2. The basic facts, which are involved in the present case, are that the complainant alleges to have supplied metal scrap worth Rs. 2.08 crores approximately, to the firm of the petitioner, named, M/s Jassar Multi Metals. Out of the above-said, an amount of Rs. 30.50 lakh is stated to have been paid by the petitioner through cheques drawn upon his bank account. However, an amount of Rs. 1,77,69,336/- is not paid. When the complainant raised the issue of non-payment with the petitioner, he issued two cheques bearing No.000095 dated 06.10.2022, amounting to Rs. 27,69,336/- of Kotak Mahindra Bank and cheque No.005646 dated 05.05.2023, amounting to Rs. 1,50,00,000/- of Federal Bank. However, out of the said cheques, one cheque defaulted because the payment was stopped by the petitioner and the second cheque defaulted because the petitioner had closed the account itself. Thereafter, the complainant had filed a complaint under section 138 of the N.I, Act, qua default of one cheque bearing No.000095 dated 06.10.2022. At this stage, the petitioner asserted and got lodged a DDR with the police that some of his cheques had got stolen from his car. The petitioner also came up with another story asserting therein that in fact, he had been cheated by one Manish Vijan Pankaj and Balbir Singh. It was further asserted that the goods supplied by the complainant were further supplied to another firm named M/s Amba Shakti Ispat Limited. The said firm made the payments through cheques issued in the name of the firm of the petitioner. However, above said Manish Vijan and Balbir Singh opened a fictitious account in the name of the firm of the petitioner in A.U.Small Finance Bank, Chandigarh. The cheques given by M/s Amba Shakti Ispat Limited were encashed in the said account and thereafter, even the money from the said account was withdrawn by the said persons, and, thereby, the petitioner has been cheated. Alleging the above-said facts, the petitioner had filed CRM-M- 18296-2023 before this Court, in which notice of motion has already been issued. However, after the petitioner had alleged these facts, then the complainant also had moved an application before the police alleging therein that the petitioner was introduced to the complainant by above-said Manish Vijan claiming himself to be authorized representative of the petitioner. Manish Vijan had assured the complainant that the petitioner will pay the price for the metal at a higher rate than the prevalent market rate. On that assurance, the goods were supplied to the firm of the petitioner. However, after making some initial payments, the petitioner and his wife, who were the partners in the firm M/s M/s Jassar Multi Metals, have refused to pay the balance of the sale consideration for the goods supplied. Hence, the complainant has been cheated. On these assertions, in the first instance, the police conducted the preliminary inquiry to find out as to whether the complaint made by the complainant had any substance or not. After finding substance in the complaint raised by the complainant, the police registered the FIR, involved in the present case, under Sections 406, 420 and 120B IPC, against the petitioner and his wife. In the said FIR, the present petition for anticipatory bail has been filed.

3. Arguing the case, counsel for the petitioner has submitted that the case involves purely a civil dispute, which cannot be converted into a criminal case. If the complainant asserts some amount to be outstanding, he is free to file a suit for recovery. It is further submitted that the above-said transactions had happened in April, 2021, whereas, the complaint has been lodged in May, 2023, which was converted into FIR only in Octob