ORDER:

The present Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.), praying to call for the records pertaining to C.C.No.84 of 2017 on the file of the Judicial Magistrate of First Class, Kovur, and to quash the same.

2. On perusal of the record, the 2nd respondent, who is the de facto complainant, has lodged a report to the police accusing the petitioners/ A1 and A2, i.e., Kambamsetty Vijayalakshmi and her husband Kambamsetty Srinivasulu are maintaining Sri Harsha Chits and they used to collect chits from others in their village and the de facto complainant being one of the subscriber has joined in the chit and paid the entire installments. Despite he being the paid subscriber (quantum of money relating) on even repeated demands, though lapse of one year from the prized date, the accused for one reason or the other, postponing the payment of the prized chit amount on false words and therefore he sought to take action against the petitioners/accused.

3. On receiving the said report, Kovur Police registered the crime as F.I.R.No.154 of 2014 for the offences under Sections 406 and 420 I.P.C. and Section 5 of the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999, and Section 76 of the Chit Funds Act, 1982. After completion of investigation, the police have forwarded the charge sheet under Section 173(2) Cr.P.C. to the jurisdictional Magistrate to punish the accused for the offences under Sections 406 and 420 I.P.C. by deleting the special Acts referred supra i.e., Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 and the Chit Funds Act, 1982.

4. The learned Magistrate has taken cognizance of the case for the offences under Sections 406 and 420 I.P.C. by an order dated

10.04.2017 and registered the case as C.C.No.84 of 2017.

5. The aforesaid C.C. was assailed in the present Criminal Petition on the ground that the entire dispute is a civil dispute and in order to give cloak of criminal offence, the 2nd respondent-de facto complainant has filed a false complaint to the police and on entire reading of the alleged transactions, they do not disclose the dishonest intention except bald allegations and no other details like, date of payment, mode of payment, ,place and time of payment were absent in the charge sheet and the statements under Section 161 Cr.P.C. and the charge sheet does not disclose specific role of the petitioners and without there being any specific allegations against each of the petitioner in the report, the police made the petitioners as accused. As there are no specific allegations, which attracts ingredients of Sections 406 and 420 I.P.C. and it amounts to abuse of process of law, and rigmarole of trial. Therefore, it is urged to quash the C.C.No.84 of 2017 on the file of the Judicial Magistrate of First Class, Kovur.

6. Heard Sri Posani Venkateswarlu, learned senior counsel appearing for Sri Marri Venkata Ramana, learned counsel for the petitioners and the learned Special Assistant Public Prosecutor appearing for the State.

7. Aggrieved by order of taking cognizance of case in C.C.No.84 of 2017, the petitioners have filed the above Criminal Petition under Section 482 of Code of Criminal Procedure, to quash the C.C. 84 of 2017.

8. The petitioners /accused A-1 and A- 2 in the above criminal case have run unauthorized chit fund transaction and they have collected money from the de facto complainant and others and thereafter did not pay the prized money, to the de facto complainant. The cognizance will be taken against the offence and not offender. The word 'offence' means an act committed by the accused. Here the act committed by the accused is collection of money on a promise and ultimately failed to keep the promise. Therefore, this will amount to an offence punishable under Section 420 of Indian Penal Code.

9. To constitute an offence under Section 420 IPC, there must be cheating within the meaning of Section 415 of IPC. T