9911796707
TMI Blog2025 (4) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... adganj, Nagpur, was refused. Genesis of the case: 3. The 2nd non-applicant (respondent no.2 herein) - Nitin, S/o Murlidhar Agrawal, took out an application under Section 156(3) of the Code of Criminal Procedure, 1973, before the Judicial Magistrate First Class (Nagpur) alleging as follows:- a) The appellant/accused approached the 2nd non-applicant and represented himself as a 'reputed, trustworthy and creditworthy' businessman. On such representation, between 20th November, 2015 and 02nd June, 2017, the 2nd non-applicant sold coal to the appellant and raised invoices, which carried a credit period of 15 days. In respect of the few initial invoices, the appellant made payments. Subsequently, he failed to make payments and a large amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t stage, the appellant had met him in his office and the notarized agreement came to be signed, which has not been honoured by the appellant. 6. In conclusion of investigation, a charge-sheet came to be filed against the appellant alleging commission of offence punishable under Section 420 IPC. Proceeding before the High Court : 7. The appellant assailed the charge-sheet before the High Court in Criminal Application (APL) No. 506 of 2022. The High Court refused to quash the proceeding inter alia holding the allegations prima facie divulging ingredients of offence under Section 415 IPC. 8. The High Court held the case did not divulge a purely commercial dispute and the 2nd non-applicant had not given the dispute a cloak of criminality. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y a police officer without an order of a Magistrate as contemplated under Section 155(2) of the Code. (5) Where the allegations made in the FIR or complaint are so absurd and inherently improbable on the basis of which no prudent person can ever reach a just conclusion that there is sufficient ground for proceeding against the accused. (6) Where there is an express legal bar engrafted in any of the provisions of the Code or the concerned Act (under which a criminal proceeding is instituted) to the institution and continuance of the proceedings and/or where there is a specific provision in the Code or the concerned Act, providing efficacious redress for the grievance of the aggrieved party. (7) Where a criminal proceeding is manifes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of IPC which reads as follows: "(f) A Intentionally deceives Z into a belief that A means to repay any money that Z may lend to him and thereby dishonestly induces Z to lend him money, A not intending to repay it. A cheats." 14. There is no cavil that in some cases a commercial dispute may give rise to a criminal offence in addition to a civil cause of action. The test to determine whether a case would attract penal consequences is as follows:- "Did the offending party make dishonest representation at the inception of the transaction and induce the other party to part with property, or act in a manner which but for such representation, the latter would not have done Hridaya Ranjan Prasad Verma and Ors vs State of Bihar and Anr, (200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tend additional loans. Nothing is placed on record to disclose utter insolvency or bankruptcy of the appellant, which he had knowingly suppressed and persuaded the 2nd non-applicant to enter into the commercial arrangement. The High Court erred in not taking into consideration these relevant aspects, which shows the representation of the appellant that he was a creditworthy businessman cannot be labelled as 'deception' merely on the ground that the appellant had failed to honour the terms of the subsequent agreement. The High Court came to the conclusion that the appellant had intention to deceive from the inception of the transaction. This reasoning is wholly fallacious. Mere breach of promise to repay per se does not infer dishonest inten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contract the circumstances of the accused were such that he must have known that it was practically impossible that he would be able to pay for the goods " Nothing has been placed on record to demonstrate the appellant was in dire financial straits at the time when the 2nd non-applicant had supplied coal. 22. In Khoda Bakhsh vs Bakeya Mundari 1905 SCC OnLine Cal 170, the accused had deceived the complainant to part with money on the assurance to liquidate a mortgage debt and utilized the money to repay another debt which he had suppressed. No such divergence of funds/ goods is made out in the factual matrix to show 'deception' by the appellant. 23. For the aforesaid reasons, the impugned order is set aside and the proceeding arising ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
