Civil disputes arising from employment contracts cannot be criminalized unless they disclose clear criminal intent, as held in this case.

ORAL ORDER:-

1 The applicant is the accused in Regular Criminal Case No.163 of 2006, pending before the Chief Judicial Magistrate, Ratnagiri. The case arises on a complaint filed by one Sudhir Gujran, Deputy Manager of the respondent no.1 – Raymond Limited – a Company. incorporated under the Companies Act.

2 By this application invoking the inherent powers of this Court, the applicant is challenging the order issuing process, as passed by the learned Chief Judicial Magistrate, Ratnagiri on 5th October 2006, requiring the applicant to appear and answer to the charge of offences punishable under section 418 and 420 of the IPC . In the alternative, the applicant is praying that the case be transferred to the Court of a Magistrate at Mumbai, as the Chief Judicial Magistrate, Ratnagiri has no territorial jurisdiction to entertain the complaint, and try the alleged offences.

3 I have heard Mr.S.C. Naidu, learned counsel for the applicant. I have heard Mr.Hemang Jariwala, learned counsel for the respondent no.1. I have heard Mrs.S.V.Gajare, learned APP for the State.

4 The applicant is a trained and qualified pilot who had served the Indian Air Force as a 'Jet Fighter and Bomber Pilot' for about 22 years before opting for a premature retirement in the year 1994.

5 The respondent no.1 Company appointed him as a trainee Commander in its aviation division on 1st February 2003. The applicant left the employment of the respondent no.1 Company in August 2006. The complaint in question, came to be filed on 15th December 2006, as aforesaid, by the Dy. Manager, Secretarial Administration, of the respondent no.1.

6 With the assistance of the learned counsel for the parties, I have gone through the application, and the annexures thereto. The learned counsel have relied upon a number of decisions rendered by the Supreme Court of India in support of their respective contentions. I have taken into consideration the propositions laid down in the pronouncements of the Supreme Court relied upon by the learned counsel.

7 The version of the complainant, as appearing in the complaint, in brief, may be stated thus :-

That the respondent no.1 - Raymond Limited - carries on various industrial and business activities all over India, including carriage of passengers, or cargo for hire; and that for this purpose, the Raymond Limited (hereinafter referred to as 'the Company') has maintained a fleet of various types of aircrafts and helicopters, and has also employed various officers and staff pilots to manage the activity and fly the planes. The Company used to impart special training to the pilots by sending them abroad at the expenses of the company. In return, such pilots would have to assure and give undertaking, and execute an indemnity bond in favour of the company, that they would serve the company for atleast seven years. The Company also used to pay special allowance, residential accommodation, and other perquisites to such pilots. That, in response to the company's advertisement for the post of Captain, the accused had made an application on 29th April 2002. After holding a meeting with the accused wherein the terms and conditions of service were explained to him, he was appointed as 'trainee Commander' with effect from 1st February 2003. The accused was informed before appointing him that he would be required to undergo training abroad, and that the Company would bear the expenses, provided the accused assured to the Company that he would serve the Company for minimum 7 years. The accused had assured to the Company that he was desirous of going abroad for training, and if he was to be sent abroad for training at Companies cost, he would serve the company for atleast 7 years after return. The accused had agreed to execute an indemnity bond as per the requirement of the company.

8 After the appointment of the accused, he was sent for training to CAE, Simufleet, USA. The Company incurred an expense of Rs.10,30,925/- for the training and other additional expens