Order

04/02/2021 The petitioners by this petition has challenged FIR No.40/2020 of Police Station- Gotan (Nagaur) registered against them for offence under secs.420, 406 IPC.

Learned counsel for the petitioners submits that on the basis of aforesaid FIR, no case under sec.406 or 420 IPC is made out against the petitioners in view of law laid down by Hon’ble Supreme Court in State of Haryana Vs Bhajan Lal & others:

(1992) Supp 1 SCC 335.

It is submitted that the petitioners entered into an Agreement for operating of their mine with the complainant, who has subsequently lodged the present FIR, alleging that from the said mine high-quality stone was not recovered and therefore, he has suffered great loss. It is also stated in the FIR that he had spent huge amount of Rs.27 Lacs in development of the mine but the stone of high quality was not recovered from the mine and thus, the petitioners have committed offence under sec.420 and

406 IPC.

Learned counsel for the petitioners submits that the mine admittedly belongs to the petitioners and therefore, there is no case of offence under sec.406 IPC nor can it be said to be a case of offence under sec.420 IPC, as admittedly an Agreement was entered into between the parties relating to operation of the mine, which was handed over to the complainant accordingly.

Learned counsel for the petitioners submits that in the Agreement, there is also a clause for arbitration and a notice has also been sent to the complainant for getting the matter resolved through arbitration but there is no response from the other side.

Per contra, learned counsel appearing for the complainant submits that the complainant has suffered a huge amount on the promise of the petitioners that there would be high quality stone, which can be recovered from the mine and it is the promise made by the petitioners that the complainant had entered into the Agreement with them. Thus, an offence under secs.420 and 406 IPC is made out against the petitioners.

I have considered the submissions made by the parties.

Section 420 IPC reads as under:

“420. Cheating and dishonestly inducing delivery of property.—Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.”

Section 406 IPC reads as under:

“406. Punishment for criminal breach of trust.— Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.”

From the perusal of facts on the record, one hundred acres limestone mine was handed over for mining activity to the complainant by the Agreement and there have been transactions between the parties relating to the mining conducted on the site. It appears that the complainant, being dissatisfied with the quality of limestone recovered from the mine, found that he will suffer loss. It is also to be noticed that the accused-petitioner is a Director in complainant’s firm and there is dispute between the Directors relating to the Agreement and there is also an arbitration clause.

Keeping in view the aforesaid aspects, this Court is of the opinion that the offence under sec.420 IPC alleged against the petitioners can not be said to be made out. From perusal of the FIR, as the mines are admittedly owned by the petitioners, offence under sec.406 IPC also can not be said to be assigned to the petitioners. In view thereof, this petition deserves to be allowed and it is accordingly allowed.

The proceedings initiated against the petitioners in FIR No.40/2020 registered at Police Station- Gotan, District Nagaur are quashed. The bail bonds, if any filed by the petitioners, stand discharged.

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