Case Note & Summary
The applicant, Deepak Jaiswal, a director of M/s D.J. Enterprises Ltd., filed a criminal application under Section 482 of the Code of Criminal Procedure, 1973, challenging the order dated 24 October 2018 passed by the Judicial Magistrate First Class, Tirora, rejecting his discharge application in Regular Criminal Case No. 11 of 2016. The case arose from a report lodged by Omprakash Bhardwaj, Project Officer of Adani Power Maharashtra Limited, on 10 April 2013, leading to registration of Crime No. 135 of 2013 on 11 September 2013 for an offence under Section 420 of the Indian Penal Code, 1860. The prosecution alleged that the accused, with dishonest intention, induced the informant-company to enter into a lease agreement for land admeasuring 36.52 acres, knowing that he was not in possession and had no title to the property. The land was originally possessed by M/s Lan Eseda Industries Limited as a lessee, which had obtained a loan from the Industrial Finance Corporation of India. The Corporation filed proceedings for recovery of Rs.81,41,124/- and obtained a recovery certificate. The accused claimed that he had acquired rights through the recovery certificate. The court considered whether the allegations made out a prima facie case of cheating. The court held that the essential ingredient of dishonest intention at the inception was missing, as the accused had a recovery certificate and the dispute was essentially civil in nature regarding title and possession. The court found that continuing criminal proceedings would be an abuse of process. The court allowed the application, quashed the order rejecting discharge, and discharged the accused from the offence under Section 420 IPC.
Headnote
A) Criminal Procedure Code - Section 482 CrPC - Inherent Powers - Quashing of Criminal Proceedings - The High Court can exercise inherent powers to prevent abuse of process of court when the allegations do not make out a prima facie case of cheating. (Paras 1, 10)
B) Indian Penal Code - Section 420 IPC - Cheating - Essential Ingredients - For an offence under Section 420 IPC, dishonest intention must exist at the time of making the inducement. Mere breach of contract or civil dispute does not constitute cheating. (Paras 5-7)
C) Criminal Law - Lease Agreement - Civil Dispute - Criminal Proceedings - Where the dispute pertains to title and possession of property under a lease agreement, and the accused had a recovery certificate, the matter is essentially civil in nature and criminal proceedings are an abuse of process. (Paras 8-9)
Issue of Consideration
Whether the order rejecting the discharge application of the accused under Section 420 IPC is sustainable when the dispute primarily involves civil rights and lacks evidence of dishonest intention at the inception of the transaction.
Final Decision
The court allowed the criminal application, quashed the order dated 24 October 2018 passed by the learned Judicial Magistrate First Class, Tirora, and discharged the applicant from the offence under Section 420 IPC in Regular Criminal Case No. 11 of 2016.
Law Points
- Section 482 CrPC
- Section 420 IPC
- Cheating
- Dishonest intention
- Lease agreement
- Civil dispute
- Criminal proceedings
- Abuse of process
Case Details
2023 LawText (BOM) (06) 191
Criminal Application (APL) No. 1071 of 2018
Mr. R.L. Khapre, Senior Advocate a/b. Mr. Pushkar Deshpande, Advocate for the Applicant; Mr. S.A. Ashirgade, APP for Non-applicant No.1/State; Mr. M.R. Joharapurkar, Advocate for Non-applicant No.2.
Deepak S/o. Ramdeo Jaiswal
State of Maharashtra through Police Station Officer, Tiroda, and Adani Power Maharashtra Ltd.
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Nature of Litigation
Criminal application under Section 482 CrPC challenging rejection of discharge application in a case under Section 420 IPC.
Remedy Sought
The applicant sought quashing of the order rejecting his discharge and discharge from the offence under Section 420 IPC.
Filing Reason
The applicant was accused of cheating by inducing the informant-company to enter into a lease agreement for land he allegedly did not possess or have title to.
Previous Decisions
The learned Judicial Magistrate First Class, Tirora, rejected the discharge application on 24 October 2018.
Issues
Whether the allegations in the complaint make out a prima facie case of cheating under Section 420 IPC.
Whether the dispute is essentially civil in nature and criminal proceedings are an abuse of process.
Submissions/Arguments
The applicant argued that the dispute is civil in nature regarding title and possession, and there was no dishonest intention at the inception.
The prosecution contended that the accused induced the company to enter into the lease agreement knowing he had no title or possession.
Ratio Decidendi
For an offence under Section 420 IPC, dishonest intention must exist at the time of making the inducement. Where the dispute is essentially civil in nature regarding title and possession under a lease agreement, and the accused had a recovery certificate, criminal proceedings are an abuse of process and liable to be quashed under Section 482 CrPC.
Judgment Excerpts
In this criminal application filed under Section 482 of the Code of Criminal Procedure, 1973, the applicant-accused has questioned the correctness of the order dated 24th October, 2018, passed by the learned Judicial Magistrate First Class, Tirora, whereby the learned Magistrate rejected the application made by the applicant-accused for his discharge in Regular Criminal Case No.11 of 2016.
It is the case of prosecution against the accused that he with dishonest intention induced the informant-company to enter into a lease agreement knowing fully well that the accused was not in possession of the property as well as had not acquired title to the property.
Procedural History
On 10 April 2013, a report was lodged by Omprakash Bhardwaj, Project Officer of Adani Power Maharashtra Limited, leading to registration of Crime No. 135 of 2013 on 11 September 2013 for an offence under Section 420 IPC. After investigation, a charge sheet was filed and Regular Criminal Case No. 11 of 2016 was initiated. The applicant filed a discharge application, which was rejected by the learned Magistrate on 24 October 2018. The applicant then filed the present criminal application under Section 482 CrPC before the High Court.
Acts & Sections
- Code of Criminal Procedure, 1973: Section 482
- Indian Penal Code, 1860: Section 420
