Case Note & Summary
The present appeal arose from an order of the Gujarat High Court dismissing a petition under Section 482 CrPC for quashing FIR No. 3 of 2007 registered at PS Mehsana for offences under Sections 420, 406, 419, 467, 468, 379, 465, 475, 120-B and 114 IPC. The appellants had earlier filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 alleging that a cheque for Rs.4,50,000 issued by respondent No.2 was dishonoured. Respondent No.2 then filed a complaint alleging that the cheque along with two others had been misplaced and used fraudulently by the appellants. The Supreme Court noted that both complaints pertained to the same cheque, with the NI Act complaint being earlier in time. Instead of quashing the FIR, the Court held that the interests of justice would be served by transferring the proceedings arising from the FIR to the Judicial Magistrate, Surat, where the NI Act complaint was pending, so that both cases could be heard together to avoid contradictory judgments. The appeal was disposed of with directions for transfer and appearance of parties on 16 March 2020.
Headnote
A) Criminal Procedure - Transfer of Proceedings - Common Issue - Sections 482, 406 CrPC, 1973 - Where two complaints, one under Section 138 NI Act and another under IPC, revolve around the same cheque, the court may transfer the later proceedings to the court where the earlier complaint is pending to avoid contradictory judgments and facilitate common adjudication (Paras 7-9).
Issue of Consideration
Whether the FIR should be quashed or proceedings transferred to avoid contradictory judgments when both complaints revolve around the same cheque.
Final Decision
The appeal is disposed of with direction that proceedings arising out of FIR No. 3 of 2007 PS Mehsana shall stand transferred to the Court of Judicial Magistrate, Surat where proceedings of complaint No. 33537 of 2006 are pending. Both cases shall be heard and decided together. Parties to appear on 16th March 2020.
Law Points
- Transfer of proceedings to avoid contradictory judgments
- Common issue in civil and criminal cases
- Section 482 CrPC quashing not warranted when transfer suffices
Case Details
Criminal Appeal No. 317 of 2020 (Arising out of SLP (Criminal) No. 3431 of 2018)
D.Y. Chandrachud, Hemant Gupta
Shri Pareshbhai Amrutlal Patel & Ors.
The State of Gujarat & Anr.
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Nature of Litigation
Criminal appeal against dismissal of petition for quashing FIR
Remedy Sought
Quashing of FIR No. 3 of 2007
Filing Reason
Appellants sought quashing of FIR alleging misuse of cheques, as they had already filed a complaint under Section 138 NI Act for the same cheque.
Previous Decisions
High Court of Gujarat dismissed the petition under Section 482 CrPC on 11th December 2017.
Issues
Whether the FIR should be quashed when both complaints revolve around the same cheque.
Whether transfer of proceedings is a more appropriate remedy than quashing.
Submissions/Arguments
Appellants argued that the cheque was given to them along with a letter dated 25th November 2002 for contribution of Rs.4,50,000, and the cheque was issued because shares could not be issued.
Respondent No.2 alleged that three cheques were misplaced along with letter heads, rubber stamps, and other documents, and one cheque was used fraudulently by the appellants.
Ratio Decidendi
When two complaints, one under Section 138 NI Act and another under IPC, revolve around the same cheque, it is appropriate to transfer the later proceedings to the court where the earlier complaint is pending to avoid contradictory judgments and facilitate common adjudication, rather than quashing the FIR.
Judgment Excerpts
We find that the issue in both the complaints pertains to cheque No. 567889 which was said to be from the cheque book of the Company of which respondent No. 2 is the officer.
Since the issue in both the cases revolves around the same cheque, therefore, we find that instead of quashing the FIR No. 3 of 2007, the ends of justice would meet if proceedings arising out of FIR No. 3 of 2007 are transferred to the Court of Judicial Magistrate, Surat.
Procedural History
Appellants filed complaint under Section 138 NI Act on 26th July 2005. Respondent No.2 filed complaint under IPC on 17th October 2007, which was forwarded to police under Section 156(3) CrPC, leading to FIR No. 3 of 2007. Appellants filed petition under Section 482 CrPC for quashing FIR, dismissed by Gujarat High Court on 11th December 2017. Appeal to Supreme Court.
Acts & Sections
- Indian Penal Code, 1860: 420, 406, 419, 467, 468, 379, 465, 475, 120-B, 114
- Negotiable Instruments Act, 1881: 138
- Code of Criminal Procedure, 1973: 156(3), 482
