IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

290 Date of decision: 22.01.2026 Rajesh and another ...Petitioner(s)

VERSUS State of Punjab and another ...Respondent(s)

CORAM : HON'BLE MR. JUSTICE VINOD S. BHARDWAJ Present :- Ms. Shivya Sehgal, Advocate, for the petitioners.

Mr. Saurav Verma, Addl. AG, Punjab.

Ms. Rajinder Kaur, Advocate, for respondent No.2.

VINOD S. BHARDWAJ, J. (Oral)

Prayer in the present petition is for quashing of FIR bearing No.298 dated 15.11.2023, registered under Sections 420 and 120-B of the Indian Penal Code, 1860 at Police Station Phillaur, Jalandhar, along with all subsequent proceedings arising therefrom on the basis of the settlement agreement/compromise dated 31.05.2024 (Annexure P-2).

2. Briefly summarized, the aforesaid FIR was registered on the statement of Nikhil Bhuchchar, Director of Cremica Food Industries Limited, Phillaur, District Jalandhar, relevant part of which is extracted as under:-

To the Senior Superintendent of Police Jalandhar (Rural). Punjab. Sub: Complaint of cheating, Fraud, Misrepresentation & Criminal Breach of trust under sections 403, 405, 406, 409, 420 of the Indian Penal Code by and on behalf of Cremica food Industries Limited a Company duly incorporated under the provisions of the Companies Act, 1956 having its office at Theing Rd, Phillaur, Punjab 144410 (hereinafter referred to as "Complainant Company") against the following accused persons: 1. M/s avni foods having its office at Plot No.FP 2 & 3 MIDC, Butibori Nagpur ("Accused No.1"), 2 Mr. Rajesh Rathi, Partner/Proprietor of M/s Avni foods having its office at Plot No. FP 2 & 3 MIDC, Butibori, Nagpur("Accused No.02'), 3. Mr. Sanjay Rathi, Partner/Proprietor of M/s Avni foods having its office at Plot No. FP 2 & 3 MIDC, Butibori, Nagpur ("AccusedNo.03') (Hereinafter jointly referred to as "Accused Persons"), who with an ulterior motive and dishonest intention defrauded, induced and cheated the complainant company and committed the offence of cheating fraud, misrepresentations & Criminal breach of trust to the tune of Rs. 1,89,20,989/- (Rupees One Crore Eighty nine Lakhs Twenty Thousand Nine Hundred and Eighty Nine only) with the complainant company, Respected Sir, The grievance which leads to the filing of the present complaint is as under: 1. That the above named Accused No.1 is a proprietorship/partnership firm of Accused No.2 to 3. Accused No.2 and 3 being the proprietor/partners of the Accused No.1, are in-charge of the day-to-day affairs of the Accused No.1, 2. That Accused No.1 to 3 in collusion and connivance with each other had targeted the Complainant, with the malafide intent to cheat and defraud the Complainant for a sum of Rs.1,89,20,989/-(Rupees One Crore Eighty Nine Lakhs Twenty Thousand Nine Hundred and Eighty Nine only). The detailed sequence of events is enumerated as follows: (A) In the month of November, 2021 the above named Accused No.1to 3 has approached and induced the complainant Company to purchase spray cheese powder being manufactured by them. The Complainant was induced to believe that the food products being manufactured and sold by Accused persons was upto the Standards and as per the required specification of the Complainant Company. Copy of the documents exhibiting agreed standards and specifications are annexed herewith as ANNEXURE-A(B). Based on the representation and assurances given by the Accused Persons and without being aware of the malafide intentions of Accused No.1 to 3, the Complainant Company has agreed to place an order with the Accused Persons. It is pertinent to mention here that the Accused No.1 to 3 have jointly persuaded the Complainant Company to purchase bulk quantities and represented that their products would be superior quality and based on such repeated assurances, the Complainant Company placed a bulk order of 8000 KG with the Accused persons. Copy of the relevant PO's are annexed herewith as ANNEXURE-B. (C). That the material supplied by the Accused Persons w