Allegations of cheating and criminal breach of trust must have clear evidence of deception and betrayal of trust; mere payment disputes arising from contracts do not constitute a criminal offense.

ORDER

The petition is to quash the impugned FIR registered for the offences under Sections 296(b), 318(4) 316(2), 351(2) of the BNS (corresponding to 294(b) 420, 405 and 506(ii) of the IPC).

2 (i). The gist of the allegation in the FIR is that M/s.Sivaraj Spinning Mills (P) Ltd., (hereinafter referred to as 'the petitioner company') have a group of companies and among which M/s.Shanmugavel, Spinning Mills Limited had entered into an agreement with the company viz., F.Robin Power Solution Pvt. Ltd., (hereinafter referred to as 'defacto complainant company') in which the defacto complainant is the Manager for erection of 20MW solar power plant; that the total consideration was fixed as Rs.1,25,18,00,000/- [Rupees One Hundred and Twenty Five Crores and Eighteen Lakhs Only]; that thereafter the petitioner company, in which the 1^st petitioner is the Managing Director had requested for installation of a 16MW solar power plant; that on 27.12.2021 the respondent had given an invoice for a sum of Rs.1,02,00,12,160/- [Rupees One Hundred and Two Crores Twelve Thousand One Hundred and Sixty Only]; that a purchase order was issued on the same day; that on 29.12.2021, the petitioner company gave a sum of Rs.1,00,00,000/- [Rupees One Crore Only] as an advance; that after the solar power plant was installed the petitioner company had given a further sum of Rs.1,00,15,66,000/- [Rupees One Hundred Crores Fifteen Lakhs and Sixty Six Thousand Only] and failed to pay the balance sum of Rs.1,84,46,160/- [Rupees One Crore Eighty Four Lakhs Forty Six Thousand One Hundred and Sixty Only]; that on 05.10.2023, a notice was sent for payment of the said sum; that the petitioner company also had gained a sum of Rs.12,36,95,160/- [Rupees Twelve Crores Thirty Six Lakhs Ninety Five Thousand One Hundred and Sixty only] as a GST waiver and in spite of the same, they had not paid the said sum of Rs.1,84,46,160/- [Rupees One Crore Eighty Four Lakhs Forty Six Thousand One Hundred and Sixty Only]; that inspite of several reminders they did not make payment; that inspite of completing the project, the petitioners had given a false complaint against the defacto complainant's company and its Directors making it appear that in spite of the receipt of the money they had not erected the solar power plant and the petitioners have been continuously harassing the defacto complainant by giving several false complaints; and hence they had committed the aforesaid offences.

(ii) It is further the case of the prosecution that the respondents initially did not register the FIR and the defacto complainant had approached the learned Magistrate under Section 175(3) of the BNSS for registration of the FIR and on the directions of the learned Magistrate, the impugned FIR was registered.

3. The learned counsel for the petitioner would submit that the impugned FIR is a gross abuse of process of law; that the petitioners and the defacto complainant had several transactions; that even admittedly out of Rs.102 crores, the defacto complainant had paid Rs.101 Crore and odd and the alleged balance is only Rs.1,84,46,160/- [Rupees One Crore Eighty Four Lakhs Forty Six Thousand One Hundred and Sixty only] and the allegation that the petitioners are liable to make the said payment would not be a subject matter of cheating or criminal breach of trust; that in fact the respondents had also filed a suit for recovery of the mone