When a dispute pertains exclusively to contractual breach or commercial recovery and lacks clear criminal elements such as dishonest inducement or misappropriation, initiation of criminal prosecution acts as an abuse of the process of law, justifying the quashing of proceedings.

JUDGMENT :

Sanjiv Kumar, J.

1. Heard Mr. Ramesh Upadhyay, learned Senior Advocate assisted by Mr. Rajan Upadhyay, learned counsel for the applicants, learned AGA for the State, Mr. Arvind Srivastava, learned Senior Advocate assisted by Mr. Anil Kumar Pandey, learned counsel for opposite party no.2 and perused the record.

2. This application under Section 528 of Bhartiya Nagarik Suraksha Sanhita, 2023 (in short ‘BNSS’) has been filed to quash charge-sheet dated 14.03.2022, summoning order dated 23.03.2022 as well as entire proceedings of Criminal Case No. 582 of 2022 (Anuraj Ratna and others Vs. State of U.P. and another), arising out of Case Crime No. 86 of 2022, under Sections 323, 406, 409, 420, 504, 506 IPC, Police Station Phase-III, Noida, Commissionerate, District Gautam Budh Nagar, pending in the court of learned Civil Judge (Sr. Div.)/ Fast Track Court, Gautam Budh Nagar.

3. Brief facts of the case are that opposite party no.2, Alok Kumar Singh, lodged an FIR against the applicants and others, stating that the first informant is share holder of Kashvi Designs Pvt. Ltd. (herein after referred to as ‘Kashvi Ltd.’), based in C-35, 65 NOIDA, Gautam Budh Nagar. The above company was established in 2011, and is engaged in manufacture and export of garments. In January/February 2021, applicants Anuraj Ratna (Director) and Boris Morgan Denoual (Director) of Keleone Trading Company Pvt. Ltd. (herein after referred to as ‘Kaleone Co.’) approached and proposed to work with him together for a French Brand Leon and Harper (for brevity ‘L&H’), of which they are authorized representatives in India. Thereafter, the first informant started receiving orders. It is alleged that on 09.04.2021, Narendra Sharma, the Production Manager of Keleone Co., surveyed his factory and presented technical specifications. On 16.04.2021, Narendra Sharma submitted an amended purchase order through e-mail and assured that letter of credit would be established shortly. Pursuant thereto, orders worth €80,349.40 (Rs.69,15,000/-) were placed and goods were supplied through Keleon Company. It is further alleged that despite repeated requests for payment, the same was avoided on one pretext or another. On 06.10.2021, Director Naresh Kumar, personally went to the office of applicants, where they started blackmailing him and asked for a discount of €10,000 to make payment and in the evening they started misbehaving, hurled abuses and thrown him out of the office and also threatened him of dire consequences. It is alleged in the FIR that the applicants with a pre-planned conspiracy, have caused first informant’s company a financial loss of €80,349 (Rs.69,15,000/-). After repeated requests, they paid an amount of €47,870, whereas payment of €32,478.60 (Rs.27,50,000/-) is still due upon the applicants. They are asking for discount and commission, to make payments, whereas the informant had written, through e-mail, that commission would be paid after full payment.

4. Upon this information, FIR under Sections 420, 406, 323, 504, 506 Indian Penal Code,1860, (in short ‘IPC’), was lodged and after investigation, charge-sheet was filed against Anuraj Ratna, Boris Morgan Denoual, Narendra Sharma and Abhilash. The matter was investig