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2024 Supreme(MP) 479

IN THE HIGH COURT OF MADHYA PRADESH
Subodh Abhyankar, J.
Shabbir Bhai Palanpurwala v. State of M. P.
Miscellaneous Criminal Case No. 39742 of 2023 (I); Decided on 12.11.2024*

Advocates:
Surendra Singh with Manikant Sharma for applicants;
Ms. Mridula Sen, Government Advocate for respondent No. 1/State;
Varun Shukla and Jerry Lopez for respondents No. 2 and 3.

The High Court has jurisdiction to quash criminal proceedings when a dispute is fundamentally civil and does not disclose a distinct criminal offense, preventing misuse of legal processes.

Headnote:(A) Criminal Procedure Code - Section 482 - Indian Penal Code - Sections 420, 467, 468, 34 - Quashing of cognizance order - Petition filed to quash order taking cognizance against petitioners under various IPC sections for alleged fraud related to the sale of Waqf property. The Court found the dispute to be purely civil in nature, stemming from property rights and agreements. (Paras 19 and 20)

(B) Jurisdiction - High Court's discretion to quash criminal proceedings - The Court emphasized that the power under Section 482 must be used to prevent the abuse of legal processes, highlighting that a civil dispute should not be cloaked as a criminal offense - If civil remedies suffice, they should be pursued rather than criminal proceedings. (Paras 12 and 18)

Facts of the case:
The petitioners allegedly misled complainants regarding the legitimacy of a sale transaction involving Waqf property, resulting in claimed fraud and subsequent criminal charges. They received payments under the pretense of having authority to sell the property but were accused of using forged documents. (Paras 3-6)

Findings of Court:
The Court determined that the complaints arise from civil transactions that could and should be resolved in civil courts. It criticized the continuation of criminal proceedings as potentially an abuse of process if no distinct criminal offense can be substantiated. (Paras 19-20)

Issues: The key issues included whether the allegations constituted a criminal offense or were merely civil in nature and the appropriateness of quashing the cognizance order. (Paras 18-19)

Ratio Decidendi: The Court held that a dispute of civil nature should not give rise to criminal proceedings, particularly when civil remedies are available and should be exhausted first. Continuation of the case as a criminal matter is inappropriate if the foundation is civil. (Paras 19-20)

Result: Petition allowed; the order of cognizance and subsequent proceedings quashed.

Table of Content
1. allegations of fraud in property sale. (Para 3 , 4 , 5 , 6 , 7 , 8)
2. arguments on civil vs criminal nature of dispute. (Para 9 , 10 , 11)
3. arguments against petitioners and their implications. (Para 12 , 13 , 16 , 17)
4. court’s analysis of civil and criminal jurisdictions. (Para 18 , 19 , 20)
5. court's conclusion to quash criminal proceedings. (Para 21 , 22 , 23)

ORDER

1. Heard finally, with the consent of the parties.

2. This petition has been filed by the petitioners under section 482 of Cr.P.C. for quashing the order of cognizance dated 10.2.2022 passed in Case No.UNCR No.62 of 2020 by Judicial Magistrate First Class, Ujjain as also the subsequent proceedings in the form of case No.RCT 217 of 2022 under sections 420, 467, 468 read with section 34 of IPC pending in the Court of J.M.F.C., Ujjain.

Brief Facts:

3. In brief, the facts of the case are that a private complaint dated 13.2.2019 has been filed by Shabbir Hussain and Hakimuddin respondent Nos.2 and 3herein before the Judicial Magistrate First Class, Ujjain alleging commission of offence under sections 420, 403, 406, 467, 468, 471, 34, 120(b), 506, 323 and 294 of IPC by Shabbir and Shaikh Mustafa (present petitioners), as also against Mohsin, Khuzaima and Ishak.

4. It was alleged that both the parties are of the same community, and the disputed property, situated at 3/1237 (New No.36) at Mohalla Kamari Gali No.1, Chhota Teliwada Gali, Ujjain was owned and possessed by Mazar-e-Nazmi, which is a registered Waqf at Serial No.32 with Waqf Board, Bhopal. The case against the petitioners is that petitioner No.1 Shabbir Bhai Palanpurwala, and co-accused Mohsin told the respondent Nos. 2 and 3 that for the sale of the said building, petitioner No.2 has been authorized. Petitioners were working for Mazar-e-Nazmi, and hence, respondent Nos. 2 and 3 trusted them and expressed their interest to purchase Medavala Building. It has been further averred that petitioner No.2 also showed letter dated Q/SDWJ/313 dated 11.9.2013, whereby permission to sell the aforesaid building had been granted by Waqf Board, and it was told to thecomplainant that original letter is lying with petitioner No.1 and coaccused Mohsin Bhai. Since the aforesaid property belonged to respondent Nos.2 and 3's Guru Syedna Sahab, hence, they agreed to purchase the said property.

5. It has been further alleged, that petitioners and co-accused Mohsin Bhai took Rs. 20,00,000/- cash as security against which receipt on the letter pad of Mazar-e-Nazmi was issued, and the respondent Nos.2 and 3 paid sale consideration of Rs.23,00,000-, via Cheques. Thus, the Sale deed dated 27.11.2015 was executed with regard to the aforesaid property. It is further alleged that the Petitioners and other accused persons did not give the original letter dated 11.9.2013, to the complainant on the pretext that there is only one original letter and it contains description of other properties as well and assured of giving its certified copy at a future date. It is alleged that thereafter, the respondent Nos. 2 and 3 made several attempts to procure the said letter but could not obtain the same.

6. It has been further alleged that respondent Nos.2 and 3 received summons from Waqf Tribunal regarding a Civil Suit filed by the Chief Executive Officer, Waqf Board seeking relief of declaration of the aforesaid sale deed dated 26.11.2015, as null and void as the same was alleged to be executed on the basis of forged Letter dated 11.9.2013,and only after receiving such information that the respondent Nos.2 and 3 learnt that they have been cheated, as they have been sold a property, which the petitioners were not entitled to sell. When the respondent Nos.2 and 3 confronted co-accused person, Khuzema and Ishaq with regard to the aforesaid facts they did not entertain them and on the contrary abused them by stating that nothing wrong has been done, and the petitioners and other co-accused persons denied taking the cash amount, and are furt

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