Bombay High Court Directs Police to Register FIR Against Sugar Mill Officials for Non-Payment of Sugarcane Price Under Essential Commodities Act, 1955 and Sugarcane (Control) Order, 1966. The court held that failure to pay sugarcane price within prescribed period is a cognizable offence, and police must register FIR under Section 154 CrPC.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The petitioner, Pawan Ramkisan Chandak, a farmer, filed a criminal writ petition before the Bombay High Court, Aurangabad Bench, seeking a direction to the police to register a First Information Report (FIR) against the Chairman, Vice-Chairman, and other officials of NSL Sugar Limited, Majalgaon, for offences of cheating, criminal breach of trust, misappropriation of amount, and offences under the Essential Commodities Act, 1955 read with the Sugarcane (Control) Order, 1966. The petitioner alleged that he had supplied sugarcane to the sugar mill but was not paid the price within the prescribed period. He had made complaints to the Police Inspector, Majalgaon Rural Police Station, the Sub-Divisional Police Officer, the Superintendent of Police, Beed, and the District Collector, Beed, but no FIR was registered. The court considered the legal issue of whether the police are bound to register an FIR when a complaint discloses a cognizable offence. The court held that under Section 154 of the Code of Criminal Procedure, 1973, it is mandatory for the police to register an FIR if the complaint discloses a cognizable offence. The court noted that the failure to pay the price of sugarcane within the prescribed period is a contravention of the Sugarcane (Control) Order, 1966, which is an offence under the Essential Commodities Act, 1955, and also may involve offences under Sections 406 and 420 of the Indian Penal Code. The court directed the police to register an FIR based on the petitioner's complaint and investigate the matter in accordance with law. The court also disposed of the connected Criminal Application No. 3960 of 2019 filed by NSL Sugar Ltd. seeking to intervene, as the main petition was allowed.

Headnote

A) Criminal Procedure Code, 1973 - Section 154 - Registration of FIR - Duty of Police - When a complaint discloses a cognizable offence, the police officer is bound to register an FIR. Failure to do so entitles the aggrieved person to approach the Superintendent of Police under Section 154(3) or file a complaint before the Magistrate under Section 156(3) or Section 200. The High Court can also direct registration under Article 226 of the Constitution. (Paras 4-6)

B) Essential Commodities Act, 1955 - Section 3 - Sugarcane (Control) Order, 1966 - Non-payment of Sugarcane Price - The failure to pay the price of sugarcane supplied to a sugar mill within the prescribed period amounts to a contravention of the Sugarcane (Control) Order, 1966, which is an offence under the Essential Commodities Act, 1955. The police are duty-bound to register an FIR and investigate such complaints. (Paras 2-3, 7)

C) Indian Penal Code, 1860 - Sections 406, 420 - Criminal Breach of Trust and Cheating - Allegations of misappropriation of funds and cheating by the management of a sugar mill in relation to non-payment of sugarcane price may also constitute offences under the Indian Penal Code, and the police must register an FIR if the complaint discloses such offences. (Para 2)

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Issue of Consideration

Whether the police are bound to register a First Information Report (FIR) when a complaint discloses a cognizable offence, and whether the failure to do so can be remedied by a writ petition under Article 226 of the Constitution of India.

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Final Decision

The petition is allowed. The respondents are directed to register the crime on the basis of the complaint made by the petitioner and investigate the matter in accordance with law. Rule is made absolute in those terms. Criminal Application No. 3960 of 2019 is disposed of.

Law Points

  • Duty of police to register FIR when complaint discloses cognizable offence
  • Essential Commodities Act 1955 Section 3
  • Sugarcane (Control) Order 1966
  • Criminal breach of trust
  • Cheating
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Case Details

2020 LawText (BOM) (02) 5

Criminal Writ Petition No. 1293 of 2019

2020-02-17

T. V. Nalawade, M. G. Sewlikar

Mr. S. J. Salunke (for Petitioner), Mr. S. B. Narwade (APP for Respondents), Mr. Aditya N. Sikchi (for Applicant in Criminal Application No. 3960 of 2019)

Pawan Ramkisan Chandak

The State of Maharashtra, The Superintendent of Police, Beed, Sub-Divisional Police Officer, Majalgaon, The Police Inspector, Police Station Majalgaon (Rural)

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Nature of Litigation

Criminal writ petition seeking direction to police to register FIR for offences of cheating, criminal breach of trust, misappropriation, and offences under Essential Commodities Act, 1955 and Sugarcane (Control) Order, 1966.

Remedy Sought

Direction to the respondents (police authorities) to register a crime against the Chairman, Vice-Chairman etc. of NSL Sugar Limited, Majalgaon.

Filing Reason

Petitioner supplied sugarcane to NSL Sugar Limited but was not paid the price within the prescribed period; police failed to register FIR despite complaints.

Issues

Whether the police are bound to register an FIR when a complaint discloses a cognizable offence? Whether the failure to pay sugarcane price within the prescribed period constitutes an offence under the Essential Commodities Act, 1955 and the Sugarcane (Control) Order, 1966?

Submissions/Arguments

Petitioner submitted that he supplied sugarcane to NSL Sugar Limited but was not paid the price within the prescribed period, and despite complaints to various police authorities, no FIR was registered. Respondents (State) submitted through APP that the matter was under inquiry and no FIR was registered.

Ratio Decidendi

Under Section 154 of the Code of Criminal Procedure, 1973, it is mandatory for the police to register a First Information Report (FIR) when a complaint discloses the commission of a cognizable offence. The failure to pay the price of sugarcane within the prescribed period under the Sugarcane (Control) Order, 1966 is a contravention of that Order and constitutes an offence under the Essential Commodities Act, 1955, which is cognizable. Therefore, the police are duty-bound to register an FIR and investigate.

Judgment Excerpts

The present criminal writ petition is filed for relief of direction against the Respondents to register the crime against the Chairman, Vice-Chairman etc. of NSL Sugar Limited, Majalgaon, for the offences of cheating, criminal breach of trust, misappropriation of amount etc. and also for the offences punishable under the Essential Commodities Act, 1955 by using Sugarcane (Control) Order, 1966. When the complaint discloses the cognizable offence, the police officer is bound to register the crime. If the police officer refuses to register the crime, the aggrieved person can approach the Superintendent of Police under Section 154(3) of Cr.P.C. or can file complaint before the Magistrate under Section 156(3) or under Section 200 of Cr.P.C. The High Court can also give direction under Article 226 of the Constitution of India.

Procedural History

The petitioner filed a criminal writ petition before the Bombay High Court, Aurangabad Bench, seeking direction to register FIR. The court issued rule and heard both sides. Connected Criminal Application No. 3960 of 2019 was filed by NSL Sugar Ltd. seeking intervention. The court allowed the petition and disposed of the application.

Acts & Sections

  • Code of Criminal Procedure, 1973 (CrPC): 154
  • Essential Commodities Act, 1955: 3
  • Sugarcane (Control) Order, 1966:
  • Indian Penal Code, 1860 (IPC): 406, 420
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