High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE THANGAMANI
Ganesan - Appellant
Versus
State - Respondents
Crl.M.P. No.5182 of 1990
Decided On : 07 October 1994
CRIMINAL PROCEDURE CODE - SECTION 482 - QUASHING OF PROCEEDINGS - COMPLAINT UNDER SECTION 420 IPC - DISHONOUR OF CHEQUES - NO OFFENCE DISCLOSED - PROCEEDINGS QUASHED.
Fact of the Case:
Petitioner Ganesan, a businessman, was accused of cheating Srinivasan by receiving Rs. 1,15,000/- for 50 TV picture tubes but failing to deliver them. Ganesan settled the amount by paying Rs. 52,000/- in cash and issuing two post-dated cheques for Rs. 63,000/-. Srinivasan later filed a complaint under Section 420 IPC for dishonor of cheques.
Finding of the Court:
The court found that the complaint did not disclose any offence under Section 420 IPC. The dishonor of cheques issued for an existing debt did not amount to cheating. There was no evidence of dishonest intention on the part of Ganesan at the time he received the money.
Issues: Whether the complaint disclosed an offence under Section 420 IPC.
Ratio Decidendi: The court held that the mere dishonor of cheques issued for an existing debt did not constitute cheating under Section 420 IPC. There must be evidence of dishonest intention at the time the money was received.
Final Decision: The court allowed the petition and quashed the proceedings in Crime No. 1314/99.
Petition under section 482 Cr.P.C. to call for the records in Cr. No. 1314/89 on the file of Central Crime Branch, Egmore and quash the proceedings therein.
2. Petitioner Ganesan is doing business in electronic goods in the name and style of Sivasakti Electronics at No. 23, Narasingapuram street, Mount Road, Madras. On 10-11-1989 he laid a complaint before the Central Crime Branch, Egmore, Madras against one Kasim, Ismail and Akbar alleging that on 7-10-1989 one Arumugam came to his shop and represented that TV picture tubes were available for sale at No. 48, Vaithinantha Mudali street, Mint, Madras. He also gave out that one Kasim, Ismail and Akbar are his partners. Pursuant to this, he proceeded to this shop along with one Srinivasan and another. He wanted to place the order for the picture tubes only on behalf of the said Srinivasan. In the house at Vaithianatha Mudali street, Arumugam introduced Kasim, Ismail and Akbar to him. He negotiated and fixed the price of 50 picture tubes at Rs. 1,15,000/-. He got Rs. 1,15,000/- from the said Srinivasan and handed it over to them. When he demanded receipt for the same, he was told that the goods as well as the receipt would be delivered at his shop within a short time. Thereafter, he came back to his shop along with Arumugam and Srinivasan. Till 9.00 p.m. they waited in vain. He grew suspicious and again went to the house at Vaithianatha Mudali street. There was nobody and Arumugam also gave a slip. On the next day morning Srinivasan gave a complaint before the Commissioner for the purpose of getting back the money. On that basis, in the presence of Inspector Raj Mohan, he settled the amount due to Srinivasan. His complaint against Kasim and others was registered as a Crime No. 1291/89 under section 420 read with Section 34 IPC. The Inspector of Police took up this for investigation and later on referred the same as mistake of fact.
3. In the meanwhile, on 14-11-1989 at 4.00 p.m. Srinivasan lodged the impugned complaint before the Central Crime Branch, Egmore, Madras which was registered as Crime No. 1314/89 under section 420 read with Section 34 IPC. In this he has stated that he is doing business in TV. and servicing the same at C. B. Puram, Bangalore. On 17-10-1989 he met Ganesan at M/s. Naidu Electronics in Mount Road and informed him that he was prepared to take 50 pieces of TV picture tubes. The price was negotiated and fixed at Rs. 1,15,000/-. Ganesan and his son-in-law as well as one Arumugam represented that the stock was ready at Thiruvottiyur and wanted that payment should be made before taking delivery. All the three took him to Vaigunda Vathiar street in Mint. There they introduced him to one Kasim. Then as desired by all the four, he paid Rs. 1,15,000/- to Ganesan. Ganesan asked him to wait outside. He saw Ganesan receiving some commission from Kasim. He was informed that TV picture tubes would he handed over to him at 4.00 p.m. in the shop of Ganesan. Though he waited there nobody turned up. Ganesan started giving lame excuses. He grew suspicious and reported the matter before City Crime Branch Police. On the next morning of 8-10-1989 Ganesan and his son-in-law issued two post dated cheques to him for Rs. 63,000/- and paid the balance of Rs. 52,000/- in cash. On their request he informed the Police not to take any action. Later on, the two cheques dated 20-10-1989 and 21-10-1989 were dishonoured. All the four have played a calculated fraud on him.
4. In this application Ganesan the accused in Crime No. 1314/89 seeks to quash the proceedings therein by invoking the interest jurisdiction of this court under section 482 Cr.P.C. Thiru Karpagavinayam, learned counsel for the quash petitioner submits that the entire narration of events would reveal that it is Ganesan who was the victim in this episode. Even as per the complaint in Cr. No. 1314/89 Ganesan had settled the amount due to Srinivasan by paying Rs. 52,000/- in cash and issuing two post dated cheques o
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