Point of Law : Cheating - Settlement Agreement – Fir quashed - Parties having settled disputes amongst themselves and dispute arising from commercial transactions amongst themselves with no loss to State Exchequer – Hence no fruitful result would emerge from continuing criminal proceedings.

ORDER :

Meenakshi Madan Rai, J.

1. The Petitioners have filed the present Petition under Section 482 of the Code of Criminal Procedure, 1973 (for short, “Cr.P.C.”) seeking quashing of FIR bearing No.0007, dated 13.04.2021, lodged at the Police Station-CID, East Sikkim and all proceedings arising therefrom, including Notice under Section 160 Cr.P.C. bearing No.453/POL/CID/2021, dated 23.04.2021, issued to the Petitioner No.1. The present Petition is filed through Petitioner No.2 on behalf of herself and as the Power of Attorney Holder for the Petitioner No.1. The Petitioner No.3 Company is represented by one Balakrishnan Jaikumar (Authorized Representative and Managing Director of Petitioner No.3 Company).

2.(i) Learned Senior Counsel for the Petitioners No.1 and 2 submitted that the FIR, dated 13.04.2021, was registered pursuant to a written Complaint filed by one Joseph Lourduraj (Director of Petitioner No.3 Company) before the State-Respondent through the Investigating Officer, Police Station CB-CID, Police Headquarters, East Sikkim. The facts which led to the lodging of the FIR are that, M/s Shiga Energy Pvt. Ltd. was awarded the Contract to construct a Hydro Power Project at Tashiding, West Sikkim by the State of Sikkim on a Build-Own-Operate-Transfer (BOOT) basis. As per the Contract with the State, the Company was to provide a portion of the electricity generated free of cost to the State and at the end of the term (thirty five years), the Project would be transferred free of cost to the State of Sikkim, which was not liable to pay any monies to the Company in relation to the said Project. M/s Shiga Energy Pvt. Ltd. entered into a Contract with the Petitioner No.3 Company on 28.03.2011 and on 13.06.2011, the Petitioner No.3 Company decided to sub-contract the works under the Main Contract to Nirman Vridhi Constructions Pvt. Ltd. (NVCPL) vide Sub-Contract Agreements. The Project was completed in November, 2017. NVCPL and its 100% subsidiary, Indian Ocean Energy Pvt. Ltd. (IOEPL) which is registered in Singapore, also made investments into a related Company of the Petitioner No.3. Investment and Share Subscription Agreements were executed in 2014 and 2015 between and amongst the Petitioner No.3 Company, NVCPL and IOEPL, which led to the latter two entities invoking Arbitration before the Singapore International Arbitration Centre. The Award, dated 24.05.2019, was accordingly passed and by way of this Award, the Petitioner No.3 Company/Balakrishnan Jaikumar were jointly and severally liable to pay certain sums to NVCPL and IOEPL.

(ii) That, the Petitioner No.3 Company/Balakrishnan Jaikumar filed an Appeal against this Award before the High Court of Singapore which was dismissed on 13.03.2020. Further, Appeal was filed before the Court of Appeals, Singapore which is currently pending. On 27.01.2021, NVCPL and IOEPL preferred a Petition before the Hon’ble High Court of Delhi under Chapter I of Part II of the Arbitration and Conciliation Act, 1996 (for short, the “Arbitration Act”) read with Order XXI and Section 151 of the Code of Civil Procedure, 1908 (for short, the “CPC”), for the enforcement and execution of the Final Foreign Award. Petitioner No.3 Company/Balakrishnan Jaikumar filed their Objections under Section 48 of the Arbitration Act. On 12.04.2021, the Petitioner No.3 Company, through its Director Joseph Lourduraj, filed a Criminal Complaint against the Petitioners No.1 and 2, who were Directors of M/s Shiga Energy Pvt. Ltd., leading to the registration of the FIR supra. The concerned Police authorities consequently issued the Notice under Section 160 Cr.P.C., dated 23.04.2021, to the Petitioner No.1. Meanwhile, the Hon’ble High Court of Delhi, vide Order, dated 27.05.2021, in the Enforcement Proceedings, directed the matter to be listed before the Delhi High Court Mediation and Conciliation Centre. During the course of Mediation, all parties involved, agreed to resolve their disputes, both present and past, by way of