IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR BEFORE HON'BLE SHRI JUSTICE MILIND RAMESH PHADKE

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ON THE 6 OF OCTOBER, 2025 MISC. CRIMINAL CASE No. 23835 of 2022 RAJESH SHARMA AND OTHERS Versus THE STATE OF MADHYA PRADESH AND OTHERS Appearance:

Shri Vijay Dutta Sharma - Advocate for petitioners.

Shri Shishupal Singh Gurjar - Panel Lawyer for respondent No.1/State.

Shri Nirmal Sharma - Advocate for respondent [R-2].

ORDER This petition under Section 482 of the Code of Criminal Procedure has been filed by the petitioners seeking quashment of the FIR bearing Crime No. 124/2022, registered at Police Station Thatipur, District Gwalior, on 04.03.2022, for offences punishable under Sections 420, 406, and 34 of the Indian Penal Code, 1860, and all other consequential proceedings arising therefrom.

2. As per the prosecution case, the complainant, Avadhesh Sharma, son of Munni Ram Sharma, aged 37 years, resident of B-353, Suresh Nagar, Thatipur, Gwalior, proprietor of S.S. Construction, submitted a written complaint alleging that Gauri Construction Company, through its authorized partners Rajesh Kumar Sharma and Anupama Sharma, misappropriated and cheated him of a sum of Rs.12,14,000/-. It is alleged that in the year 2020, Signature Not Verified Signed by: YOGENDRA Gauri Construction Company was awarded a boring work contract by Gwalior Municipal Corporation. The complainant, who is closely related to the petitioners through his in-laws’ side, was requested to provide financial assistance with assurance of repayment upon receipt of funds. Relying upon this assurance and family relations, the complainant transferred Rs.17,70,000/- by RTGS on 23.09.2020 and subsequently advanced Rs.13,75,000/- in cash between 09.10.2020 and 26.10.2021, making a total of Rs.31,45,000/-.

3. It is further alleged that the petitioners issued cheque No.000142 dated 05.01.2022 for Rs.19,31,000/- drawn on Bank of Baroda, Shivpuri Branch, and another cheque No.005946 dated 08.01.2022 for Rs.12,14,000/- drawn on Vijaya Bank, Shivpuri, towards repayment. The first cheque was dishonoured, and proceedings under Section 138 of the Negotiable Instruments Act are pending. The second cheque was returned unpaid as Vijaya Bank had already ceased operations due to its merger with Bank of Baroda. The complainant alleges that the petitioners, having knowledge of the said merger, issued a cheque from a closed bank account with dishonest intention to defraud and misappropriate his funds.

4. Learned counsel for the petitioners submitted that during the pendency of the present petition, the charge-sheet has been filed. It is urged that Gauri Construction is a duly constituted partnership firm comprising five partners; however, only two partners, namely Rajesh Kumar Sharma and Anupama Sharma, have been selectively implicated in the present criminal proceedings, leaving out the remaining partners without justification. It is Signature Not Verified Signed by: YOGENDRA contended that the transactions in question were purely commercial and financial in nature, arising out of business dealings between the parties. The cheque amounting to Rs.19,31,000/- was issued with the clear understanding that it would be presented only after the petitioners received payment from the Gwalior Municipal Corporation. Contrary to such understanding, the complainant prematurely presented the said cheque, which consequently got dishonoured. It is further submitted that another cheque amounting to Rs.12,14,000/- of Vijaya Bank was issued by the petitioners towards part payment; however, as Vijaya Bank had already merged with Bank of Baroda, the said cheque could not be honoured upon presentation. The complainant, despite being aware of such merger, deliberately presented the cheque only to initiate criminal prosecution against the petitioners. It is thus submitted that the dispute between the parties is essentially civil in nature, arising out of monetary transactions, but has been maliciously given a criminal col