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Appeal against order quashing FIR under Sections 406, 420, and 120B IPC; Jurisdiction under Article 226 and Section 482 CrPC; Examination of partnership agreement and business dispute; Analysis of cheating and breach of trust allegations; Interpretation of partnership property rights; Comparison of civil and criminal jurisdiction in such disputes. Analysis: The appeal was filed against the order quashing the FIR under Sections 406, 420, and 120B IPC, which was registered for business-related offenses. The petition, although styled as an Article 226 petition, was essentially under Section 482 of the CrPC, which empowers the High Court to prevent abuse of process or secure justice. The court examined a partnership agreement for manufacturing and sale of goods, noting equal profit-sharing but eventual business disputes leading to the FIR. The judge emphasized the need for guilty intention for cheating under Section 415 IPC, citing precedents and the importance of initial inducement with dishonest intent. The examination of the partnership deed revealed no indication of entrustment of partnership property dominion, allowing partners to deal with the property unless restrained by agreement. The judge highlighted that money received belonged to the partnership unless specified otherwise, negating fiduciary capacity claims. The court referenced decisions deprecating criminal jurisdiction in civil disputes, emphasizing the need for specific allegations of dishonest intention in FIRs for cheating offenses. The judge dismissed the appeal, noting the inappropriate invocation of criminal jurisdiction in a primarily civil matter, citing relevant Supreme Court decisions. In conclusion, the High Court upheld the order quashing the FIR, emphasizing the distinction between civil and criminal jurisdiction in business disputes and the necessity of specific allegations for cheating offenses. The court's decision was based on a detailed analysis of the partnership agreement, business allegations, and legal precedents, highlighting the importance of intent and proper jurisdiction in such cases.
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