18.12.2025 SB CRR 4049 of 2025 Umesh Agarwal & Anr.

Vs.

The State of West Bengal & Anr.

Mr. Karan Dudhwewala Mr. Mukesh Pandey …for the Petitioners Mr. Rahul Poddar Mr. Riddhiman Mukherjee Mr. Souvik Banerjee Mr. Ayush Singhania …for the O.P. no. 2 This is an application wherein the petitioners have prayed for quashing of the impugned proceeding being G.R. case no. 1295 of 2023, presently pending before the learned Judicial Magistrate, 16th Court at Calcutta.

Petitioners’ contention are that according to the FIR, the complainant was convinced with the proposal made by the petitioners and thereby they induced him to pay them a sum of Rs. 1,06,00,000/-.

Learned counsel for the petitioners being aggrieved by the aforesaid proceeding, submits that they have partially paid the said loan amount and the outstanding amount as it stands on 20th August, 2025 is about 80,70,000/-.

Relying upon the judgment of the Apex court in Satishchandra Ratanlal Shah Vs. State of Gujarat and another reported in (2019) 9 SCC 148, learned counsel for the petitioners submits that in the aforesaid loan transaction, there was no entrustment at all which he dishonestly converted for his own use so as to satisfy the ingredients to Section 405 punishable under Section 406 IPC. He further submits that since the petitioners have repayed the substantial portion of the loan amount, there appears to be no deception at the time of inception and as such, the ingredients of Section 420 of the IPC does not attract in respect of the present petitioners. Furthermore, it is now well settled that the instant proceeding under Section 420 and 406 of the IPC cannot run concurrently in respect of the self-same cause of action.

In such circumstances, learned counsel for the petitioner submits that the opposite party herein has tried to criminalise a purely civil dispute and therefore, continuance of proceeding any further will be a mere abuse of process of the court. Accordingly, he prays for quashment of the aforesaid proceeding.

Having heard learned counsel for the petitioners, the application is admitted.

Petitioners are directed to serve a copy of the application upon the State through the office of Public Prosecutor, High Court, Calcutta and leaned counsel appeared for the opposite party no. 2.

Let the matter appear in the Monthly list of February, 2026 under the heading “Contested Application”.

Learned counsel for the petitioners prays for stay of the impugned proceeding.

Having heard learned counsel for the petitioners and that the petitioners had made out an arguable case which requires adjudication on merit, let the impugned proceeding being G.R. case no. 1295 of 2023, presently pending before the learned Judicial Magistrate, 16th Court at Calcutta be stayed for a period of twelve weeks or until further order, whichever is earlier.

Liberty is given to the opposite party no. 2 to file vacating application, if any as sought for.

Urgent Photostat certified copy of this order, duly applied for, be given to the parties upon compliance of all requisite formalities.

(Dr. Ajoy Kumar Mukherjee, J.)