Criminal proceedings based on civil disputes should be quashed if no fraudulent intention is established at the inception of the transaction.

Judgment on :

Ajay Kumar Gupta, J:

1. Petitioners have filed this Criminal Revisional application under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of the proceeding of Case No. CN/16012/2017 under Sections 406/409/420/506(II)/120B/34 of the Indian Penal Code, 1860 pending before the Court of the Learned Metropolitan Magistrate, 19 th Court at Calcutta (T.R. 1660 of 2017).

2. The factual matrix of the instant case leading to filing of this Criminal Revisional application is as under:

2a. The Opposite Party herein had lodged a petition of complaint against three accused persons including the Petitioners herein before the Court of the Learned Additional Chief Metropolitan Magistrate at Calcutta alleging, inter alia , that in the 1 st week of June 2012, the Petitioners approached the Opposite Party and sought for financial help after representing them as Directors of M/s. Tantia Agrochemicals Pvt. Ltd. and as the company suffering from financial crisis. To meet the same, they needed financial accommodation of Rs. 3 Crores. It was also agreed to pay the amount of such economic assistance in due course.

2b. On 12.06.2012, the complainant company extended such loan accommodation of Rs. 3 Crores through Real Time Gross Transfer (RTGS) from IDBI Bank, Brabourne Road, Kolkata to the company’s bank account at Axis Bank, Dalhousie, Kolkata and for that the accused persons issued the official receipt acknowledging the receipt of the loan amount.

2c. It was further alleged that out of Rs. 3 Crores, a partial payment was made by the accused persons but they failed to make payment of Rs. 1.75 Crores citing financial stringency and deferred the payment after considerable period of time. The accused persons issued and handed over four A/c payee cheques bearing nos. 177060 for Rs. 25 Lakhs, No. 177061 for Rs. 50 Lakhs, No. 177062 for Rs. 50 Lakhs and No. 177063 for Rs. 50 Lakhs all dated 01.10.2016 and all drawn on State Bank of India, Commercial Branch, Kolkata from the bank A/c of accused no. 1, M/s. Tantia Agrochemicals Pvt. Ltd. and the said cheques were signed by accused No. 2 with a representation that the cheques would be encashed in spite of knowledge very well that they have no funds in their bank account. As a result, the issuance of those cheques was likewise fraud committed upon the complainant.

2d. It was further alleged that the complainant company sent a legal notice on 27.01.2017 but to utter dismay of the complainant and other representatives of the complainant company, have been threatened with dire consequences by the accused nos. 2 and 3 and at their instances by the other local hoodlums and further refused to pay the said amount. As such, accused persons had knowingly and fraudulently made false representation as a trick to get hold of amount as aforesaid without having any intention of repayment on time and subsequent thereto to cheat the complainant company. The accused persons are, therefore, guilty of committing offences of Criminal Breach of Trust, Cheating and criminal intimidation punishable under Sections 406/409/420/506(II) read with Sections 120B/34 of the Indian Penal Code, 1860 .

2e. On the contrary, the case of the petitioners is that dispute actually arose out of a commercial transaction wherein substantial amount has been re-paid by the accused persons.

However, the Learned Additional Chief Metropolitan Magistrate was pleased to take purported cognizance without applying his judicious mind after examining the representatives of the Opposite Party and one witness. The Learned Magistrate issued process under Sections 406/409/420/506(II) read with Sections 120B/34 of the Indian Penal Code, 1860 to the Petitioners and fixed the next date on May 24, 2017 though the Petitioners are innocent and in no way connected with the offence as alleged therein. Hence, the present Criminal Revisional application.

SUBMISSIONS ON BEHALF OF THE PETITIONERS:

3. Learned counsel appearing on behalf of the Petitioner