K.K. SINGHAL & ORS. versus STEEL STRIPS LTD.

K.K. SINGHAL & ORS. versus STEEL STRIPS LTD.

The Chandigarh Court's jurisdiction cannot be ruled out at this stage since the agreement was entered there and the respondent's head office is located there; the issue of jurisdiction will be ultimately dealt with by the trial court. The plea that the dispute is purely civil and not criminal in nature cannot be accepted given the appellants' conduct and the facts as pleaded. No ground is made out for quashing the proceedings at this stage.

Parties
Appellant: K.K. Singhal & Ors.; Respondent: Steel Strips Ltd.
Jurisdiction
India
Judgment Date
09 December 2014
Procedural Posture
Criminal Appeal / Appeal From Dismissal of Quashing Application by High Court
Outcome
Appeal dismissed
Legal Topics
Quashing of Proceedings, Cheating, Dishonour of Cheque, Territorial Jurisdiction, Negotiable Instruments Act
Criminal Law Procedural Law Quashing of Proceedings Cheating Dishonour of Cheque Territorial Jurisdiction Negotiable Instruments Act

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Parties

K.K. Singhal & Ors.

Appellant

Steel Strips Ltd.

Respondent

Procedural Posture

Criminal Appeal / Appeal From Dismissal of Quashing Application by High Court

Legal Issues

  1. 1 Whether the Chandigarh Court had territorial jurisdiction for trial of alleged offence of cheating flowing from a settlement agreement between the parties.
  2. 2 Whether the dispute is of a purely civil nature or amounts to a criminal offence of cheating under the Indian Penal Code.

Ratio Decidendi

The Chandigarh Court's jurisdiction cannot be ruled out at this stage since the agreement was entered there and the respondent's head office is located there; the issue of jurisdiction will be ultimately dealt with by the trial court. The plea that the dispute is purely civil and not criminal in nature cannot be accepted given the appellants' conduct and the facts as pleaded. No ground is made out for quashing the proceedings at this stage.

Court Disposition

Appeal dismissed

Orders

  • No interference with the High Court's order; trial court to proceed without being influenced by Supreme Court observations.