Case Note & Summary
The petitioners, including a public trust and its present and former managing committee members, sought quashing of FIR No. 31/2011 registered with the Economic Offences Wing, Crime Branch, Mumbai, for offence under Section 420 read with Section 34 of the Indian Penal Code. The respondent no. 5, authorized signatory of Smt. Kamala Raheja Foundation, had lodged the complaint alleging that the foundation donated substantial sums totaling Rs. 1,20,00,000 to the trust for construction of vocational institutes, with an agreement that the foundation would have nominees on the managing committee. The foundation alleged that the trust misappropriated the funds and failed to comply with the terms of the agreement, including not allowing the foundation's nominees to participate in management. The petitioners contended that the dispute was purely civil in nature and no criminal offence was made out. The court, after hearing arguments, held that the allegations in the FIR prima facie disclose the commission of a cognizable offence and there are disputed questions of fact which cannot be adjudicated in writ jurisdiction. The court noted that the investigation was almost complete and dismissed the petition, refusing to quash the FIR.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC - Disputed Questions of Fact - Petition seeking quashing of FIR for cheating - Court held that where the allegations in the FIR prima facie disclose commission of a cognizable offence and there are disputed questions of fact, the High Court should not quash the FIR in exercise of its inherent powers - Held that the matter requires investigation and trial (Paras 5-8). B) Indian Penal Code - Cheating - Section 420 read with Section 34 IPC - Ingredients of Offence - Allegations of misappropriation of funds and breach of agreement - Court observed that the complaint prima facie shows that the petitioners induced the complainant to part with money on false promises and subsequently misappropriated the funds - Held that the FIR cannot be quashed at the threshold (Paras 6-7).
Issue of Consideration
Whether the FIR registered for offence under Section 420 read with Section 34 IPC should be quashed on the ground that the dispute is purely civil in nature and no criminal offence is made out.
Final Decision
The petition is dismissed. Rule discharged.
Law Points
- Quashing of FIR
- Section 482 CrPC
- Disputed questions of fact
- Cheating
- Breach of trust
- Civil dispute
- Criminal proceedings
