Calcutta High Court
M.S. Banga vs State Of West Bengal And Anr. on 26 July, 2004
Equivalent citations: (2004)3CALLT1(HC), 2005(1)CHN92
JUDGMENT Sankar Prasad Mitra, J.
1. This is an application under Section 482 of the Code of Criminal Procedure, 1973 filed by the petitioner praying for quashing the proceeding of G.R. Case No. 1301 of 2002 and all orders passed therein, including orders dated 23.5.2003 and 6.6.2003 pending before the learned SDJM, Burdwan arising out of Burdwan (Sadar), P.S. Case No. 570 of 2002 dated 11.11.2002 in which charge sheet under Sections 406, 467, 468, 420/120B was filed against the present petitioner being Chairman including a host of others connected with Hindustan Liver Ltd.
2. The O.P. No. 2 lodged a complaint on 7.10.2002 before the learned SDJM, Burdwan against the present petitioner including others seeking direction from the Court to refer the matter to the concerned P.S. under Section 156 for registering the case and on receipt of the said complaint, Burdwan (Sadar) P.S. registered the case No. 570 of 2002 dated 11.11.2002 under Sections 406, 467, 468, 420/120B of Indian Penal Code treating the said complaint as FIR. In due course investigation was started and the Investigating Officer after completion of investigation submitted charge sheet against the present petitioner including others under Sections 406, 407, 468, 420/120B Indian Penal Code and thereupon the learned Magistrate took cognizance of the offence and the issued warrant of arrest against the present petitioner including others. It is alleged in the complaint that O.P. No. 2 (complainant) between 1990 and 1991 started dealership of ice-cream in the Sub-Division of Asansol and its adjacent areas under an agreement with the M/s. Kwality Ice-Cream India Pvt. Ltd. and during continuance of such business in the year 1995 the business of Kwality Ice-Cream India Pvt. Ltd. was taken over by M/s. Brook Bond Lipton India Ltd., a sister concern of M/s. Hindustan Liver Ltd., Calcutta and as a result, the security deposit of M/s. Kwality Ice-Cream India Pvt. Ltd. was transferred to M/s. Brooke Bond Lipton India Ltd. and O.P. No. 2 continued this business under M/s. Brooke Bond Lipton India Ltd. till the end of the year 1998. Thereafter the Regional Commercial Manager of Hindustan Liver Ltd. issued a letter on 6.2.1998 and appointed M/s. Bengal Agency run by the proprietor O.P. No. 2 as the authorised distributor of Ice-Cream in the District of Burdwan, Purulia, Bankura and Birbhum. Thereafter by the end of 1998 petitioner was called at the office of M/s. Brooke Bond Lipton India Limited and Hindustan Liver Ltd. and advised by them to invest substantial fund for development of infrastructure so that they could earn huge profit. The petitioner O.P. No. 2 being convinced initially invested Rs. 10 lacs and thereafter invested another Rs. 15 lacks by borrowing from Bank for development of the said business. Unfortunately the business run by him suffered loss and in the meantime the discount allowed to him was curtailed from 15 percent. Since the business of the O.P. No. 2 ran at loss, he approached the accused persons for rectification of its road map, plan etc. For development of his business earning the profit. But O.P. No. 2 was asked to continue the business till any further approval was obtained from the Head Office of the H.L.L. However, inspite of continuing the business the O.P. No. 2 suffered huge loss as the Hindustan Liver Ltd. did not settle the dues or credit notes of O.P. No. 2 and return the security deposit amount of Rs. 15 thousand. The O.P. No. 2 complainant on several occasions moved the company for taking immediate steps but, suddenly distributorship of the O.P. No. 2 was cancelled unilaterally and it was given to M/s. Khaitan Agency of Asansol. The accused persons named in the complaint persuaded the O.P. No. 2 (complainant) to continue with its distributorship making false promises which at that point of time they had no intention to honour and thereby they had committed breach of trust. That apart, agreement entered into by O.P. No. 2 (complainant) with the accused persons was never made over to him. On the contrary various terms were incorporated in such agreement in hand writing in the year 2001 by tampering the same with an ulterior motive to evade their responsibility of making payments to O.P. No. 2 complainant (agreement annexure H). So prayer was made in the said complaint for prosecuting the accused persons under Sections 406, 467, 468, 420/120B of the Indian Penal Code.
3. The Investigating Officer after completion of the investigation on the basis of this complaint filed by O.P. No. 2 submitted a charge sheet against the present petitioner including others stating that the complainant invested Rs. 25 lacs for the business of distributorship of Kwality Ice-Cream but, the Hindustan Liver Ltd. did not pay the profit assured to the complaint inspite of several reminders. On the contrary the distributorship was given to M/s. Khaitan of Asansol without any notice to him and as a result complainant (O.P. No. 2) suffered a loss of Rs. 1.5 lacs.
4. Learned advocate Mr. Ghosh appearing on behalf of the petitioner drawing my attention to the complainant lodged by O.P. No. 2 as also C.S. filed in the case submits that in charge sheet nothing has been said about forgery and document of forgery was not seized by the police. According to him annexure 'H' is non est and therefore, the question of tampering with the said document by making alterations or interpolations does not arise and in fact the present petitioner is in no way connected with the said offences under Sections 467 and 468 and there is even no whisper against the petitioner in this regard in the complaint or in the C.S.
5. Mr. Ghosh submits that with regard to the offence of cheating under Section 420 of Indian Penal Code there is no whisper in the complaint that the present petitioner made false representations to the complainant (O.P. No. 2) for the purpose of what role was played by the petitioner with regard to the offence of cheating. On the contrary the C.S. discloses element of breach of contract for which the complainant (O.P. No. 2) suffered loss and for that petitioner a Chairman of the company cannot be held responsible. He further submitted that the complainant (O.P. No. 2) invested money for running his own business and he ultimately suffered loss although under an agreement he made security deposit after observing necessary formalities the breach of which gives rise to Civil Suit and such breach of contract in absence of mens rea from the very inception cannot be said to be an offence of cheating. It is further submitted by Mr. Ghosh that in the charge sheet there is no allegation that a promise not kept was a promise that resulted from initial deception. According to him there is practically no whisper against the present petitioner that he had committed any breach of trust not to speak of anything about criminal conspiracy as enumerated in Section 120B of Indian Penal Code. It is also submitted that there is no ingredient to implicate the present petitioner with the offence under Section 406 of Indian Penal Code since there is nothing in the complaint that the petitioner was ever entrusted with any property belonging to the complainant (O.P. No. 2) and in due course the petitioner misappropriated the same. Save and except general bald allegation, there is no specific complaint against the present petitioner. Mere omnibus statement alleging offences under Sections 406, 467, 468, 420/120B in absence of specific allegation cannot create any liability implicating the petitioner as offender. It is further submitted by Mr. Ghosh that the petitioner is the Chairman of HLL but at the relevant point of time he was not the Chairman of the company. That apart under the Penal Law, there is no concept of vicarious liability unless the said statute covers the same within its ambit.
6. Mr. Ghosh clarified in his argument that three civil suits bearing T.S. No. 1969 of 2001, renumbered as E.O.S. of 2003, C.S. No. 9/ 2002 and C.S. No. 10/2002 are pending between the complainant (O.P. No. 2) and Hindustan Liver Limited before this Hon'ble Court in respect of the subject matter arising out of business transaction between the parties. Moreover, O.P. No. 2 in discharge of his liabilities in connection with the business transaction issued two cheques in favour of Hindustan Liver Ltd. but, those cheques were dishonoured and as a result Hindustan Liver Ltd. instituted two cases under Section 138 of N.I. Act against O.P. No. 2 (complainant) which are pending before the Metropolitan Magistrate Court, Calcutta.
7. According to him, the complainant O.P. No. 2 in order to put a pressure upon Hindustan Liver Ltd. hoisted a criminal case against the present petitioner including others for settlement of civil dispute in his favour and thus, the civil dispute has been given a cloak of criminal offence by the (complainant) O.P. No. 2. Criminal proceedings are a short cut of other remedies available in law. Therefore, before issuing process, a Criminal Court has to exercise a great deal of caution. It is further submitted by Mr. Ghosh that a judicial forum of Court should not be allowed to be utilised for any motive to wreck vengeance in the hands frustrated or vindictive litigants.
8. Mr. Ghosh further submitted that a purely civil dispute has been brought to Criminal Court by the complainant O.P. No. 2 against the present petitioner including others and neither the complainant or the charge sheet discloses any prima facie material to show that a present petitioner had committed offences under Sections 406, 467, 468, 420/120B of Indian Penal Code. Therefore, taking of cognizance and issuance of process against the present petitioner by the learned SDJM Burdwan should be held illegal and this Court should quash the proceeding against the present petitioner under Section 482 of Code of Criminal Procedure because continuation of the proceeding against the petitioner would be sheer abuse of the process of Court. Learned advocate Mr. Ghosh in support of his contention relied upon the following decisions:
1. S.W. Palanitkar and Ors. v. State of Bihar and Anr., (2002)2 SCC 241.
2. Hriday Ranjan Prasad Varma v. State of Bihar and Anr., (2004)4 SCC 168.
3. Trilok Singh and Ors. v. Satya Deo Tripathi, .
4. Charanjit Singh Chadha and Ors. v. Sudhir Mehra, .
5. Pepsi Food Ltd. and Anr. v. Special Judicial Magistrate and Ors., .
6. Ashok Chaturvedi and Ors. v. Shitul H. Chanchani and Anr., .
7. S.G. Sagar Suri and Anr. v. State of Uttar Pradesh and Ors., .
8. State of Karnataka v. L. Muniswamy and Ors.,
9. Dr. Sharada Prasad Sinha v. State of Bihar, .
10. Madhabrao Jiwajirao Scindia and Ors. v. Sambhajirao Chandrojirao Angre and Ors., (1998)1 SCC 692.
11. Ajay Misra v. State of Madhya Pradesh and Ors., JT 2003(1) SC 418.
12. U. Dhar and Anr. v. State of Jharkhand and Anr., .
13. Hiralal Harilal Bhagwati v. CBI, New Delhi, .
9. Learned counsel Mr. D. Roy appearing on behalf of O.P. No. 2 submitted before me that since C.S. has been submitted after completion of investigation on the basis of the complaint lodged by the complainant, there is hardly any scope to quash the proceedings under Section 482 of Code of Criminal Procedure by calling for the C.D. According to him petitioner should come with a specific case which is wanting in this case and as such, attention should be confined to FIR. Mr. Roy further contended that the complainant was given a rosy picture to earn huge profit by investing substantial amount of money by the accused persons and the complainant having fallen upon such trap invested Rs. 25 lacs for running distributorship business of Kwality Ice-Cream but, ultimately, he suffered loss of Rs. 13 lacks. It is indicated that H.L.L. called the complainant and gave a rosy picture and they prepared road map, plans and formulated guidelines with dishonest intention from initial stage and, therefore, there are sufficient materials to constitute offences under Sections 420/406/467/468/120B of Indian Penal Code. According to him the FIR itself substantially makes out offences referred to above and the petitioner could have agitated all the points taken in this application at the time of consideration of charge before the trial Court. According to him the decisions cited by the learned advocate of the petitioner in this case are not applicable and the distributorship earlier given to the O.P. No. 2 (complainant) was cancelled with dishonest intention without giving any notice to him, which was preceded by reduction of commission. It is, therefore, submitted by the learned advocate Mr. Roy that considering the facts and circumstances, the application filed by the petitioner praying for quashing the proceedings under Section 482 of Code of Criminal Procedure should be dismissed, as it has no merit.
10. Learned advocate Mr. Roy further submitted that when charge-sheet has been submitted in this case this Court should not usurp the jurisdiction of trial Court by exercising its power under Section 482 of Code of Criminal Procedure. According to him face value of the charge sheet should be accepted without raising any question because the petitioner will get ample opportunity to canvass his grievance before the trial Court at the time of consideration of charge. Learned advocate Mr. Roy in support of his contention has relied upon the following decisions:--
1. S.M. Dutta v. State of Gujarat and Anr., .
2. Kamaladevi Agarwal v. State of West Bengal and Ors., (2001)4 All India Cr LR 675.
3. Rajlakshmi Mills v. Shakti Bhakoo, .
4. State of Madhya Pradesh v. Awadh Kishore Gupta and Ors., 2004 SC(Cr) 353.
5. Radhey Shyam Khemka and Anr. v. State of Bihar, .
and Nand Kishore Tulsain v. State of Bihar and Anr., .
6. Suresh Chandra Bahri v. State of Bihar, 1995 SCC (Cr) 60.
and Gurbachan Singh v. State of Bihar, 1995 SCC (Cr) 60.
and Rajpal Sharma v. State of Bihar, 1995 SCC (Cr) 60.
7. Hardeo Singh v. State of Bihar and Anr., 2000 SCC (Cr) 1008.
8. Mohammad Usman Mohammad Hussain Mariyar and Ors. v. State of Maharashtra, 1981 SCC (Cr) 47.
11. Mr. S.S. Roy learned counsel for State (O.P. No. 1) in course of his argument submitted that on the basis of complaint lodged by O.P. No. 2 the case was started by police and the I.O. after completion of investigation submitted a charge sheet against the present petitioner including others with a view to prosecuting them under Sections 467, 468, 406, 420 and 120B of Indian Penal Code. It is also submitted by him that inspite of existence of civil suits between the parties there is no bar to proceed with a criminal case against the petitioner including others. He, therefore, submits in the circumstances this Court should not quash the proceeding as prayed by the petitioner by invoking its inherent power under Section 482 of Code of Criminal Procedure.
12. In disposing of an application under Section 482 of Code of Criminal Procedure Court should keep in its mind the guidelines given by the Apex Court in Bhajanlal's case. In State of Haryana v. Bhajanlal in 1992 supp (1) SCC 335 the Apex Court observed that this power could be exercised either to prevent abuse of the process of the Court or otherwise to secure the ends of justice, making it clear that it may not be possible to lay down in the precise, clearly defined and sufficiently channelised and inflexible guidelines or rigid formulae and give an exhaustive list to myriad kinds of cases wherein such power should be exercised.
13. The decisions cited by the learned advocates of both parties give us an idea about negative as well as positive application of inherent power of Court under Section 482 of Code of Criminal Procedure depending upon facts and circumstances of each case. The parties who are at draggers drawn came to be acquainted on the basis of contractual rights and obligations. A plain reading of the complaint does not disclose ingredients of offences of criminal conspiracy, criminal breach of trust and cheating alleged to have been committed by the petitioner. The complaint also does not disclose what role was played by the petitioner with regard to offence of forgery of valuable security for the purpose of cheating. The charge-sheet submitted in this case pursuant to an investigation in connection with the complaint lodged by the complainant (O.P. No. 2) does not disclose that the alleged forged document (annexure H) was seized by the police. On the other hand the report submitted in the charge-sheet by the Investigating Officer discloses that the complainant invested Rs. 25 lacs for the purpose of distribution of Kwality Icecream but Hindustan Liver Ltd. did not pay the profit assured to the complainant inspite of several reminders. On the contrary the distributorship was given to Mrs. Khaitan of Asansol without any notice to complainant (O.P. No. 2) and as a result the complainant (O.P. No. 2) suffered a loss of Rs. 15 lacs. The charge-sheet discloses contractual obligation and breach thereof for which remedy is available in Civil Court. There is no prima facie material to show that the present petitioner committed offences under Sections 406, 467, 468, 420 and 120B of Indian Penal Code. The nexus between offences committed and the offender is found absent in the charge sheet. The concept of vicarious liability is also not found under the Indian Penal Code. In the circumstances, I find that the continuation of criminal proceeding pending against the present petitioner will be sheer abuse of the process of Court. Therefore, I find sufficient material to invoke the inherent power under Section 482 of Code of Criminal Procedure so as to quash the proceeding.
14. As such the application under Section 482 of Code of Criminal Procedure filed by the petitioner is allowed.
15. The criminal proceeding pending against the petitioner in connection with G.R. Case No. 1301 of 2002 before SDJM Burdwan arising out of Burdwan (Sadar) P.S. Case No. 570 of 2002 dated 11.11.2002 under Sections 406, 467, 468, 420/120B is hereby quashed.
Urgent xerox certified copy of this order by given to the parties immediately, if applied for.