The central legal point established is that when a dispute is found to be purely civil in nature, criminal proceedings may be quashed under Section 482 of the Code of Criminal Procedure.

By means of the this petition, moved Under Section 482 of Code of Criminal Procedure, 1973, the petitioners have sought quashing of the proceedings of criminal case no. 8658 of 2002, State vs. Ratan Singh Bisht and others, relating to offences punishable under section 406, 420, 467, 468, 471 I.P.C, pending in the court of Additional Chief Judicial Magistrate, Haldwani.

2. Heard learned counsel for the parties and perused the affidavit, counter affidavit and rejoinder affidavit on record.

3. Brief facts of the case are that complainant Khushal Singh Rawat moved an application under section 156(3) of Cr.P.C, the Magistrate on the basis of which a First Information Report was lodged against accused/petitioners at Police Station Haldwani, relating to offences punishable under section 406, 420, 467, 468, 471 I.P.C, (Crime No. 382 of 1995). The allegations in the First Information Report are that the complainant started doing some timber business with the petitioner no.1 Ratan Singh Bisht (since deceased). The dispute relates to the period from 25.08.1994 to 19.10.1994. It is alleged by the complainant that the timber entrusted to the petitioner no.1 was misappropriated by him and his workers (petitioner no. 2 to 3). It is further alleged that the complainant was deprived on his share of profits in the business. The investigating officer submitted charge sheet against the petitioners in respect of offences punishable under section 406, 420, 467, 468, 471 I.P.C.

4. Learned counsel for the petitioners submitted that dispute between the complainant and the petitioners is a civil in nature. It is pleaded that admittedly complainant entered into contract that the petitioner no.1 Ratan Singh Bisht (since deceased) in connection with the timber business and he did not get his share of profit. In this connection, attention of this court is drawn to the fact that admittedly suit no. 129 of 1997 was instituted by the complainant Kushal Singh Rawat before Civil Judge (Senior Division), Nainital, against the petitioner no.1 Ratan Singh Bisht. In the counter affidavit filed on behalf of the complainant Khushal Singh Rawat, in this case, it is admitted that said suit was filed by him. Learned counsel for the petitioner referred to the judgment and decree dated 14th of December 2007, passed by the Civil Judge (Senior Division), Nainital, in Civil Suit No. 129 of 1997 whereby, the suit filed by the complainant for recovery of 8,90,699.40 has been dismissed. The counter claim of the petitioner no.1 Ratan Singh Bisht was also dismissed. Copy of said Judgment is annexed as Annexure RA1 to the rejoinder affidavit filed on behalf of the petitioners.

5. Having considered submissions of learned counsel for the parties and after going through the papers on record, this court finds that it is a case of purely civil dispute and as such the criminal proceedings challenged before this court are liable to be quashed. Assuming for a moment that there was a criminal liability, it pertains only to petitioner no.1 Ratan Singh Bisht (since deceased) who was partner in the business of the complainant. Others are admittedly his workers. As to the petitioner no.1 it has come on the record he has already died.

6. In the above circumstances, this petition under section 482 of Cr.P.C is allowed. The proceedings of criminal case no. 8658 of 2002 State vs. Ratan Singh Bisht and others relating to offences punishable under section 406, 420, 467, 468, 471 I.P.C, pending in the court of Additional Chief Judicial Magistrate, Haldwani, are hereby quashed.