IN THE HIGH COURT OF ALLAHABAD
Saurabh Shyam Shamshery, J.
Smt. Shiela Gupta - Applicant
Versus
State of U.P. and Another - Opposite Party
Application U/S 482 No. 11657 Of 2022
Decided On : 26-09-2022
Indian Penal Code, 1860 – Section 420, 406, 120-B, 409, 405, 415 – Criminal Procedure Code, 1973 – Section 482 – Death of criminal proceedings – Committing offence – Quash the criminal proceedings – Allegations are frivolous – Exceptionally rare cases – Dispute in present case is arising out of a Committee of Management Maternity Hospital, Meerut Trust Society – Undisputedly, applicant was appointed by a resolution of society as a Chairman of said hospital and she remained on said post thereafter, one was appointed as a Chairman of said hospital – Held, Court has to see whether ingredients of Section 420 I.P.C. (cheating and dishonestly inducing delivery of property) are made out or not – During investigation, it has come that applicant was not authorized to execute a lease, however, she misrepresented herself to be a trustee of hospital whereas admittedly she was a Chairman of hospital at relevant point of time and lease deed was executed at throw away price without any termination clause and as such it was wrongful loss to society and therefore, prima facie ingredients of cheating and dishonesty are present and as such offence under Section 420 I.P.C. is also prima facie made out – Court cannot exercise inherent powers which will cause sudden death of criminal proceedings – Facts and circumstances of present case, therefore, do not fall under category that ‘allegations are frivolous’ or ‘do not disclose any offence’ and therefore, it does not fall under ‘exceptionally rare cases’ wherein exercise of inherent powers is warranted – Ordered Accordingly.
JUDGMENT :
Saurabh Shyam Shamshery, J.
1. Dispute in the present case is arising out of a Committee of Management of Sushila Jaswant Rai Maternity Hospital, Meerut under Jaswant Rai Churamani Trust Society. Undisputedly, the applicant was appointed by a resolution of society dated 02.10.2001 as a Chairman of said hospital and she remained on the said post till 15.02.2019, thereafter, one Rajiv Kumar Gupta was appointed as a Chairman of the said hospital.
2. It is a case of complainant (one of trustee/chairman of the Trust) that said new committee came to know in July, 2020 that applicant in connivance with other accused persons prepared a lease deed by misrepresenting herself to be a trustee of said hospital and executed in favour of Shreya Medicare Private Ltd. through its Director Mridul Sharma w/o Dr. Malay Sharma and handed over major part of hospital to them and thereby caused unlawful loss to society and to hospital and unlawful gain in favour of accused persons.
3. In these circumstances, an F.I.R. was lodged by complainant against the applicant and other accused persons on 07.10.2020 bearing Case Crime No. 676 of 2020 under Sections 420, 467, 468, 471 at Police Station- Civil Lines, District Meerut. The Investigating Officer conducted investigation and recorded statements of witnesses and came to a conclusion that there were sufficient evidence against applicant and other accused persons for committing offence under Section 420, 406 I.P.C. by applicant and offence under Section 420, 406, 120-B I.P.C. by other accused persons, viz., Mridul Sharma and Dr. Malay Sharma, and a charge sheet was filed, whereof cognizance was taken and summons were issued to applicant and other accused persons. The applicant is aggrieved by above referred criminal proceedings, charge sheet and its cognizance and therefore she is before this Court.
4. Sri Dileep Kumar Pandey, learned counsel for applicant submitted that she is an old lady, who has served as a Chairman of hospital for a long period and acted only for benefit of hospital and trust. She became a trustee as per resolution dated 13.08.1995 and in furtherance of later resolution dated 01.10.2001, she was looking after the affairs of hospital also. Therefore, the applicant has not made any misrepresentation while executing the lease deed. The F.I.R. was filed after six years and there was no explanation for such huge delay. The purpose of lease deed was to meet out day to day expenses of hospital and therefore the purpose was for benefit of hospital and society. There was no wrongful gain to applicant or other accused or wrongful loss to hospital.
5. Learned counsel also pointed out that in the lease deed, it was also specifically mentioned that applicant was Chairman of Management of Committee of hospital at the relevant time, therefore, the applicant has not misappropriated any property nor by cheating and dishonestly, induced any person to deliver any property.
6. Learned counsel also submitted that offence under Sections 406 and 420 I.P.C. cannot go together being an antihesis.
7. The applicant has also lodged an F.I.R. against one Rajiv Gupta and others of complainant side alleging that they have manufactured fictitious documents and forged her signature and present criminal proceedings were counterblast to it. The applicant is presently 90 years old and is suffering from cancer and other old age ailments.
8. The above submissions are vehemently opposed by Sri Srijan Pandey holding brief of Sri Swetashwa Agarwal, learned counsel for opposite party No.2 that during the period of applicant, being Chairman of hospital, not only the lease was executed on throw away price but huge money was also siphoned and for that a separate F.I.R. was lodged on 17.11.2021 against applicant and other accused persons under Section 409 I.P.C.
9. He further submitted that by way of lease, the applicant and other accused persons wanted to encroach upon the property of hospital in order provide monetary
State of Haryana Vs Bhajan Lal
Zandu Pharmaceutical Works Ltd Vs Mohd Sharaful Haque
Joseph Salvaraja A v. State of Gujarat
Sushil Sethi and another Vs The State of Arunachal Pradesh and others
Sau. Kamal Shivaji Pokarnekar v. The State of Maharashtra
State of Karnataka v. M. Devendrappa
Indian Oil Corporation v. NEPC India Ltd. & Ors.
M/s Neeharika Infrastructure Pvt. Ltd Versus State of Maharashtra and Others
Vijay Kumar Ghai and others vs. State of West Bengal and others
R.K. Dalmia vs Delhi Administration
SupremeToday
Section 409 IPC deals with criminal breach of trust by public servant or by banker, merchant or agent.
A mere breach of contract, characterized by a pending civil dispute between landlord and tenant, cannot be converted into a criminal prosecution for cheating or breach of trust unless fraudulent inte....
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.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.