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Delhi District Court

Of Gulab Chand Upadhyay vs . State Of Up. 2002 Crl. Lj 2907, It Has ... on 3 December, 2015

                                                                            CC No. 76/1/15
                                M/s Vishwanath & Sons V. M/s Esjaypee Impex Pvt. Ltd & Ors.
                                                                           PS Lahori Gate


03.12.2015

Present :        Complainant with counsel.


                 Vide this order, I shall decide the application u/s 156(3) Cr.PC filed on behalf of
the complainant for registration of FIR against the proposed accused person as mentioned in
his complaint and to investigate the case.
                 The case of complainant is that complainant is a registered partnership firm and
accused no. 1 is a private limited company. Accused no. 2 to 4 approached the complainant
at Delhi office informed that accused no. 1 deals in spices and pulses and is a reputed
importer of spices and pulses and gives its best rate in the market. It was also represented by
them that accused no. 2 is managing director and accused no. 3 and 4 are directors of
accused no. 1. Accused no. 2 to 4 also represented that accused no. 1 can supply 5 fcl Tur
Lemon 2014 Crop as it was imported from Burma (Myanmar) and same is lying at the
Mumbai Port and same can be delivered to the complainant on advance payment of Rs.
56,50,000/-. Believing on the representation and assurances of the accused persons,
complainant made an advance payment of Rs. 56,50,000/- by RTGES on 30.10.2014 in the
bank account of accused no. 1, however, he did not receive any delivery even after making
the advance payment. Complainant received e-mail dated 20.11.2014 and written undertaking
dated 21.11.2014 from the accused persons pertaining to transactions in question but goods
were not delivered. Thereafter, accused no. 3 with the consent, knowledge and approval of
accused no. 2 and 4 for and on behalf of accused no. 1 issued certain cheques drawn on
Kotak Mahindra Bank to the complainant but aforesaid cheques were returned unpaid on their
presentations with the remarks "payment stopped by the drawer". Thereafter, complainant
had telephonic discussion in this regard with the accused persons whereupon accused
persons assured payments of dishonoured cheque within short span but again they failed to
make the payment and complainant issued legal demand notice dated 12.03.2015 to the
accused persons but of no avail. Thereafter, complainant lodged complaint dated 13.04.2015
with the SHO PS Lahori Gate but no action was taken by the police officials. Hence, the

CC No. 76/1/15              M/s Vishwanath & Sons v. M/s Esjaypee Impex Pvt. Ltd. & Ors.   Page 1 of 6
 present application.
                 ATR filed by the IO wherein it is stated after investigation it was revealed that
dispute is of civil nature and no police action is required.
                 I have given my thoughtful consideration to the contentions of the complainant
and have gone through the record as well as perused the report.
                 The Law in respect of application U/s 156 (3) Cr.P.C. is well settled. In the case
of Gulab Chand Upadhyay Vs. State of UP. 2002 Crl. LJ 2907, it has been held as under:
                 "the scheme of Cr.PC and the prevailing circumstances require that the option to
direct the registration of the case and its investigation by the police should be exercised
where some "investigation" is required, which is of a nature that is not possible for the private
complainant, and which can only be done by the police upon whom statute has conferred the
powers essential for investigation.
                 But where the complainant is in possession of the complete details of all the
accused as well as the witnesses who have to be examined and neither recovery is needed
nor any such material evidence is required to be collected which can be done only by the
police, no "investigation" would normally be required and the procedure of complaint case
should be adopted".
                 In M/s Skipper Beverages Pvt. Ltd. Vs. State 2001 IV AD (Delhi), it was held
that:
                        "It is true that Section 156(3) of the Code
                        empowers to Magistrate to direct the police to
                        register a case and intimate investigations but
                        this power has to be exercised judiciously on
                        proper grounds and not in a mechanical
                        manner. In those cases where the allegations
                        are not very serious and complaint himself is in
                        possession of evidence to prove his allegations
                        there should be no need to pass orders U/s
                        156 (3) of the Code. This discretion ought to be
                        exercised after proper application of mind and
                        only in those cases where the Magistrate is of


CC No. 76/1/15              M/s Vishwanath & Sons v. M/s Esjaypee Impex Pvt. Ltd. & Ors.   Page 2 of 6
                        the view that the nature of the allegations is
                       such that the complainant himself may not be
                       in a position to collect and produce evidence
                       before the court and interest of justice demand
                       that the police should step in the help of the
                       complaint.


                 The court is supposed to order investigation keeping in mind the guidelines
issued by the Hon'ble Delhi High Court in the case of Subh Karan Luharuka & anr Vs. State
& anr 2010 (3) JCC 1972, where it is laid down as under:


                          "52A. For the guidance of Subordinate
                          Courts, the procedure to be followed while
                          dealing with an application U/s 156 (3) of
                          the Code is summarized as under:-
                          (i) Whenever a Magistrate is called upon to
                              pass orders under Sec 156 (3) of the
                              code, at the outset, the Magistrate
                              should ensure that before coming to the
                              Court, the complainant did approach the
                              police officer in charge of the Police of
                              Station having jurisdiction over the area
                              for recording the information available
                              with him disclosing the commission of a
                              cognizable            offence           by         the
                              person/persons arrayed as an accused
                              in the complaint. It should also be
                              examined as to what action was taken
                              by the SHO, or even by the senior officer
                              of the Police, when approached by the
                              complainant under Section 154 (3) of the


CC No. 76/1/15             M/s Vishwanath & Sons v. M/s Esjaypee Impex Pvt. Ltd. & Ors.   Page 3 of 6
                      Code.
                 (ii) The Magistrate should then form his own
                     opinion whether the facts mentioned in
                     the complaint disclose commission of
                     cognizable offence by the accused
                     persons arrayed in the complaint which
                     can be tried in his jurisdiction. He should
                     also satisfy himself about the need for
                     investigation by the police in the matter.
                     A    preliminary        enquiry      as     this     is
                     permissible even by an SHO and if no
                     such enquiry has been done by the
                     SHO, then it is all the more necessary
                     for the Magistrate to consider all these
                     factors. For that purpose, the Magistrate
                     must      apply      his     mind       and     such
                     application of mind should be reflected
                     in the Order passed by him.
                     Upon a preliminary satisfaction, unless
                     there are exceptional circumstances to
                     be recorded in writing, a status report by
                     the police is to be called for before
                     passing final orders.
                 (iii) The Magistrate when approached with a
                     complaint under Section 200 of the
                     Code, should invariably proceed under
                     Chapter XV by taking cognizance of the
                     complaint, recording evidence and then
                     deciding the question of issuance of
                     process to the accused.
                     In that case also, the Magistrate is fully


CC No. 76/1/15    M/s Vishwanath & Sons v. M/s Esjaypee Impex Pvt. Ltd. & Ors.   Page 4 of 6
                                entitled to postpone the process if it is
                               felt that there is a necessity to call for a
                               police report under Section 202 of the
                               Code.
                           (iv) Of course, it is open to the Magistrate to
                               proceed under Chapter XII of the Code
                               when an application under Section 156
                               (3) of the Code is also filed alongwith a
                               complaint U/s 200 of the Code if the
                               Magistrate        decides        not      to        take
                               cognizance of the complaint. However,
                               in that case, the Magistrate, before
                               passing any order to proceed under
                               Chapter XII, should not only satisfy
                               himself about the pre requisites as
                               aforesaid, but, additionally, he should
                               also be satisfied that it is necessary to
                               direct Police investigation in the matter
                               for collection of evidence which is
                               neither     in    the     possession           of    the
                               complainant nor can be produced by the
                               witnesses on being summoned by the
                               Court at the instance of the complainant,
                               and the matter is such which calls for
                               investigation by a State agency. The
                               Magistrate must pass an order giving
                               cogent reasons as to why he intends to
                               proceed under Chapter XII instead of
                               Chapter XV of the Code."


                 Perusal of complaint reveals that there are allegations of not delivering goods


CC No. 76/1/15              M/s Vishwanath & Sons v. M/s Esjaypee Impex Pvt. Ltd. & Ors.   Page 5 of 6
 ever after taking advance money. Neither goods were delivered nor advance money was
refunded to complainant by accused.


        In the light of the facts and circumstances of the present complaint, there is no need to
invoke section 156(3) Cr.PC for issuing direction to register FIR against the respondent as:

1. The identity of alleged accused persons are ascertained.

2. No fact are needed to be unearthed as the same are well within the knowledge of the complainant.

3. Custodial interrogation of alleged accused persons are not necessary.

4. The evidence is well within the reach of complainant & no assistance of police is required to gather the same.

5. The facts of the case is not such that would warrant a detailed and complex investigations to be carried out by the State Agency.

Hence, there is no need for investigation by the Police u/s 156 (3) Cr.PC in this case. Application is hereby dismissed.

However, the cognizance on the complaint is taken, Complainant is at liberty to lead pre-summoning evidence. In case any requirement of investigation arises at later stage qua some disputed facts the provision of section 202 Cr.PC could be resorted to.

List for PSE on 20.02.2016 .

(Shilpi Jain) MM-01(Central)/THC/Delhi 03.12.2015 CC No. 76/1/15 M/s Vishwanath & Sons v. M/s Esjaypee Impex Pvt. Ltd. & Ors. Page 6 of 6