Case Note & Summary
The petitioner, M/s. Fairwinds Asset Managers Ltd., acting as fund manager for Reliance Alternative Investments Fund – Private Equity Scheme I (RAIF), filed a criminal writ petition seeking a direction to the police to register an FIR on a complaint dated 30/4/2015 addressed to the Joint Commissioner of Police, Economic Offences Wing, Mumbai. The complaint alleged that Hitesh Jobalia, Nimesh Shah, and Rahul Desai, directors of Max Flex & Imaging Systems Limited, had misappropriated funds invested by RAIF in the company. The police, through a communication dated 21/1/2016 from Sr. Inspector Arvind N. Wadhankar, informed the petitioner that the complaint was of a civil nature and the enquiry was closed. The petitioner contended that the police were obligated to register an FIR as the complaint disclosed cognizable offences. The court examined the nature of the dispute, noting that RAIF was an investor and shareholder in the company, and the allegations pertained to mismanagement and misappropriation of funds by the directors. The court held that the police have the discretion to assess whether a complaint discloses a cognizable offence and to close the enquiry if it appears civil. The court found no reason to interfere with the police's decision, as the petitioner had alternative civil remedies. The petition was dismissed, and rule was discharged.
Headnote
A) Criminal Procedure Code - Direction to Register FIR - Power of Police to Close Enquiry - The petitioner sought a direction to register FIR on a complaint alleging misappropriation of funds by directors of a company. The police closed the enquiry stating the dispute was civil. The High Court held that the police have the discretion to close an enquiry if the complaint is civil in nature, and no direction to register FIR is warranted unless a cognizable offence is disclosed. (Paras 1-4) B) Criminal Procedure Code - Section 156(3) - Inherent Power under Section 482 - The court declined to interfere with the police's decision, noting that the petitioner had alternative civil remedies available. The petition was dismissed. (Paras 5-6)
Issue of Consideration
Whether the High Court should direct the police to register an FIR on a complaint that the police had closed as being of civil nature.
Final Decision
The petition is dismissed. Rule discharged.
Law Points
- Direction to register FIR
- Power of police to close enquiry
- Civil vs criminal dispute
- Section 156(3) CrPC
- Section 482 CrPC
