IN THE HIGH COURT OF MADHYA PRADESH
J.P. GUPTA, J.
Mahesh Dudhani and Others – Petitioners
Versus
State of M.P. and Another – Respondents
M. Cr. C. No. 11686 of 2014
Decided On : 27-03-2017
Quashing - Criminal Proceedings - Indian Penal Code - 406, 420, 467, 468, 448, 120-B
Fact of the Case:
The petitioners sought quashment of criminal proceedings against them for offences under sections 406, 420, 467, 468, 448, and 120-B of the Indian Penal Code. They claimed innocence and argued that the allegations were baseless and malicious.
Finding of the Court:
The court found that the evidence did not disclose the commission of any offence by the petitioners. It concluded that the complaint was made maliciously with an oblique motive, falling under the categories of 3 and 7 as discussed in the case of State of Haryana vs. Bhajan Lal, 1992 Supp. (1) SCC 335. The court allowed the petition and quashed the proceedings against the petitioners.
Issues: The issues revolved around the alleged criminal breach of trust, cheating, forgery, and fraud by the petitioners in relation to the auction sale of industrial property.
Ratio Decidendi: The court held that the evidence did not support the allegations and that continuation of the criminal proceedings against the petitioners would be an abuse of the process of the court.
Final Decision: The petition was allowed, and the proceedings against the petitioners in Criminal Case No. 364/2013 were quashed.
ORDER :
1. This petition under section 482 of the Code of Criminal Procedure has been filed by the petitioners for quashing and setting aside the proceedings pending in the Court of Judicial Magistrate First Class, Pipariya, District Hoshangabad against them in Criminal Case No. 364/2013 arising out of the Crime No. 367/2011 for offences under sections 406, 420, 467, 468, 448 and 120-B of the Indian Penal Code registered at Police Station Pipariya, District Hoshangabad.
2. Facts of the case in narrow compass are that the petitioners are the purchaser of the industrial property belonging to the respondent No. 2 - M/s Kabra Agro Industries Limited, which was purchased in the year 2002 through auction sale conducted by the Commercial Tax Department of the Government of M.P. with regard to recovery of the dues of the tax amount. The aforesaid property was also attached by the M.P. Finance Corporation and the M.P. State Electricity Board with regard to recovery of their dues. The aforesaid Kabra industry was also declared a Sick industry by the B.I.F.R. on 5-3-1999. On receiving complaint regarding illegality and impropriety conducted in the auction procedure, the Collector Hoshangabad by exercising powers under section 50 of the M.P. Land Revenue Code vide order dated 23-12-2013 set aside the auction procedure and directed for initiation of the criminal proceedings against the persons responsible. The Managing Director of the M/s Kabra Agro Industries Ltd. i.e. respondent No. 2 submitted a complaint under section 156 (3) of the Criminal Procedure Code before the JMFC, Piparia, District Hoshangabad alleging that the accused persons by entering into a criminal conspiracy and by playing fraud established a firm in the name of M/s Arjun Palia Banskheda which tried to grab the said property by illegal means and with mala fide intention; and the accused persons with the connivance of the officers of the Commercial Tax Department and by hatching into criminal conspiracy prepared forged documents and Panchnama with intention to cheat the complainant. It is also alleged in the complaint that the applicants with the connivance of the officers of the Commercial Tax Department purchased the property on very low price and the officers of the Commercial Department without considering the fact that the property was also attached by the other departments and was declared sick industry, took possession forcefully and misappropriated some property of the industry. The complaint was sent to the Police Station Piparia and the Police submitted report before the concerned JMFC on 7-3-2011 that in the preliminary inquiry, only some procedural errors have been found in the auction sale of the property and no cognizable offence is made out against anybody. This report was not accepted by the Court concerned and the Police was further directed to record FIR and make afresh investigation. After that, on completion of the investigation, a charge sheet for the offence under sections 406, 420, 467, 468, 448 and 120-B of the Indian Penal Code has been filed against the applicants.
3. The petitioners seek quashment of the aforesaid charge sheet and further proceedings on the ground that they are innocent. They have not hatched any conspiracy with the officers of the Commercial Tax Department. The property was auctioned by the Commercial Tax Officer and in the public auction, the petitioners had purchased the said property by putting the highest price in the auction. They have not prepared any forged document and have not committed any fraud with anybody. After issuing sale certificate, they got possession in the legal manner but the Collector, Hoshangabad has set-aside the auction procedure on account of so called irregularities and disobeying the directions of this Court issued on 3-12-2001 in the Writ Petition No. 4325/2001 and considering the sale price very low in comparison to the actual price of the property. According to the order of the Collector it is foun
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