Bombay High Court Quashes Second Criminal Complaint in Partnership Dispute Due to Settlement of First Complaint — Principle of Constructive Res Judicata Under Section 300 CrPC Applied. Second Complaint on Same Cause of Action Held Not Maintainable as Abuse of Process of Court.

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

The petitioners, Kamlesh and Ankur Mehta, and respondent no.2, Rajanand Sarde, entered into a partnership on 29th January 2004 to manufacture self-net for refrigerators. A dispute arose, and respondent no.2 filed a criminal complaint (Regular Criminal Case No.660 of 2005) on 7th June 2005 alleging illegal withdrawals and seeking prosecution under sections 420, 468, 471, 506 read with section 34 of the Indian Penal Code. The Magistrate directed police investigation under section 156(3) CrPC. Subsequently, the parties resolved the dispute, and the police reported the settlement to the Magistrate, who on 30th August 2005 disposed of the complaint noting that the matter was settled out of court. Thereafter, the petitioners issued a public notice terminating the partnership from 30th September 2005, preceded by a registered notice dated 22nd September 2005. Respondent no.2 then filed a second criminal complaint (Regular Criminal Case No.1571 of 2005) on the same cause of action. The petitioners sought quashing of the second complaint. The court considered whether a second complaint on the same cause of action is maintainable after the first was disposed of as settled. The court held that the second complaint is not maintainable as it amounts to an abuse of the process of court, applying the principle of constructive res judicata under Section 300 CrPC. The court quashed the second complaint and all proceedings therein.

Headnote

A) Criminal Procedure Code - Constructive Res Judicata - Section 300 CrPC - Second Complaint on Same Cause of Action - The court held that a second criminal complaint for the same cause of action is not maintainable when the first complaint was disposed of as settled between the parties, as it would amount to an abuse of the process of court. The principle of constructive res judicata applies to criminal proceedings under Section 300 CrPC. (Paras 1-10)

B) Partnership Dispute - Criminal Complaint - Quashing - Abuse of Process - The petitioners and respondent no.2 entered into a partnership, and a dispute arose leading to a criminal complaint. After the first complaint was disposed of as settled, the respondent filed a second complaint on the same cause of action. The court quashed the second complaint as it was an abuse of the process of court. (Paras 2-10)

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Issue of Consideration

Whether a second criminal complaint based on the same cause of action is maintainable after the first complaint was disposed of as settled between the parties.

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Final Decision

The court allowed the petition and quashed the second criminal complaint (Regular Criminal Case No.1571 of 2005) and all proceedings therein.

Law Points

  • Principle of constructive res judicata
  • Section 300 CrPC
  • abuse of process of court
  • quashing of criminal proceedings
  • second complaint on same cause of action
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Case Details

2016 LawText (BOM) (10) 6

Criminal Writ Petition No.624 of 2006

2016-10-13

N.W. Sambre

Mr Sandesh Hange holding for Mr R.A. Tambe for petitioners; Mr K.D. Munde, Addl. Public Prosecutor for respondent no.1; Mr A.R. Vaidya holding for Mr Hiraji Gaikwad for respondent no.2

Kamlesh s/o Harivallabh Mehta and Ankur s/o Kamlesh Mehta

The State of Maharashtra and Rajanand s/o Raosaheb Sarde

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Nature of Litigation

Criminal writ petition seeking quashing of a second criminal complaint on the ground that it is based on the same cause of action as a previously settled complaint.

Remedy Sought

The petitioners sought a declaration that the second criminal complaint is not maintainable and quashing of the said proceedings.

Filing Reason

The petitioners filed the petition because respondent no.2 filed a second criminal complaint on the same cause of action after the first complaint was disposed of as settled between the parties.

Previous Decisions

The first complaint (Regular Criminal Case No.660 of 2005) was disposed of by the learned Magistrate on 30th August 2005 as settled out of court.

Issues

Whether a second criminal complaint on the same cause of action is maintainable after the first complaint was disposed of as settled between the parties.

Submissions/Arguments

The petitioners argued that the second complaint is an abuse of the process of court and not maintainable as the first complaint was already disposed of as settled. The respondent no.2 likely argued that the second complaint is based on fresh cause of action or that the settlement did not cover all aspects.

Ratio Decidendi

A second criminal complaint on the same cause of action is not maintainable when the first complaint was disposed of as settled between the parties, as it amounts to an abuse of the process of court. The principle of constructive res judicata under Section 300 CrPC applies.

Judgment Excerpts

By present petition, the petitioners have sought a declaration that the second criminal complaint, for the same cause, is not maintainable and sought quashing of the said proceedings. Hence the complainant's case disposed.

Procedural History

The first complaint (RCC No.660/2005) was filed on 7th June 2005, investigated under section 156(3) CrPC, and disposed of as settled on 30th August 2005. The second complaint (RCC No.1571/2005) was filed thereafter. The petitioners filed Criminal Writ Petition No.624 of 2006 seeking quashing of the second complaint.

Acts & Sections

  • Indian Penal Code, 1860: 420, 468, 471, 506, 34
  • Code of Criminal Procedure, 1973: 156(3), 300
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