Case Note & Summary
The applicants, Navneet Kumar Aggarwal, Naresh Aggarwal, and Ramawatar Goel, filed an application under Section 482 of the Code of Criminal Procedure, 1973 before the Bombay High Court, Nagpur Bench, seeking quashing of FIR No. 127/2017 registered at Police Station Hudkeshwar, Nagpur for offences under Sections 406 and 420 read with Section 34 of the Indian Penal Code, 1860. The FIR was lodged by respondent no. 2, Shiv Jagdishchandra Gupta, proprietor of M/s B. B. Minerals and Metals, alleging that the applicants, who were business associates, had failed to pay an outstanding amount of Rs. 48,09,018/- for charcoal supplied. The applicants contended that the dispute was purely civil in nature, arising from business transactions, and that the respondent could have filed a civil suit instead of initiating criminal proceedings. The court, after hearing the parties, observed that the allegations pertained to a business transaction and did not disclose any criminal offence. The court held that the dispute was civil in nature and that the FIR was an abuse of the process of law. Consequently, the court allowed the application and quashed the FIR.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Inherent Powers - Section 482 CrPC - Dispute arising out of business transactions for supply of charcoal - Allegations of cheating and criminal breach of trust - Held that the dispute is purely civil in nature and no criminal offence is made out - FIR quashed (Paras 2-6).
Issue of Consideration
Whether the FIR alleging offences under Sections 406 and 420 IPC can be quashed when the dispute is purely of a civil nature arising out of business transactions.
Final Decision
The court allowed the application and quashed FIR No. 127/2017 registered at Police Station Hudkeshwar, Nagpur.
Law Points
- Civil dispute cannot be converted into criminal offence
- Quashing of FIR when allegations are purely civil in nature
- Section 482 CrPC inherent powers
Case Details
2018 LawText (BOM) (02) 144
Criminal Application (APL) No. 200 of 2017
R. K. Deshpande, M. G. Giratkar
Harish V. Thakur for applicants, A. M. Deshpande for respondent no. 1, Linkan S. Bande h/f S. A. Chaudhari for respondent no. 2
Navneet Kumar s/o Naresh Aggarwal, Naresh s/o Mangiram Aggarwal, Ramawatar s/o Phoolchand Goel
The State of Maharashtra, Shiv Jagdishchandra Gupta
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Criminal application under Section 482 CrPC for quashing of FIR
Remedy Sought
Quashing of FIR No. 127/2017 registered at Police Station Hudkeshwar, Nagpur
Filing Reason
Allegations of cheating and criminal breach of trust in business transaction for supply of charcoal
Issues
Whether the FIR alleging offences under Sections 406 and 420 IPC can be quashed when the dispute is purely of a civil nature arising out of business transactions.
Submissions/Arguments
Applicants submitted that the dispute is civil in nature and the respondent could have filed a civil suit.
Respondent no. 2 alleged that the applicants cheated to the tune of Rs. 48,09,018/-.
Ratio Decidendi
Disputes arising out of business transactions which are purely civil in nature cannot be converted into criminal offences. The FIR was an abuse of the process of law and liable to be quashed under Section 482 CrPC.
Judgment Excerpts
The applicants have challenged the registration of First Information Report (FIR) No. 127/2017 dated 24-2-2017 by Police Station, Hudkeshwar, Nagpur for the offences punishable under Sections 406 and 420 read with Section 34 of the Indian Penal Code.
It is submitted by the applicants that allegations levelled against the applicants are in respect of business transactions and it is of civil nature, the respondent no. 2 could have filed civil suit and, therefore, prayed to quash the FIR registered against the applicants.
Procedural History
The applicants filed Criminal Application (APL) No. 200 of 2017 under Section 482 CrPC before the Bombay High Court, Nagpur Bench, challenging FIR No. 127/2017 dated 24-2-2017. The court heard the parties and passed judgment on 6-2-2018.
Acts & Sections
- Indian Penal Code, 1860: 406, 420, 34
- Code of Criminal Procedure, 1973: 482
