VIJAY KUMAR GHAI & ORS. versus THE STATE OF WEST BENGAL & ORS.

VIJAY KUMAR GHAI & ORS. versus THE STATE OF WEST BENGAL & ORS.

The FIR No.168 dated 28.03.2013 and consequent proceedings under Sections 406, 420 and 120B IPC against the appellants were quashed because the allegations, viewed prima facie, did not disclose dishonest or fraudulent intention required for cheating/criminal breach of trust, were essentially civil/contractual disputes, and the complainant had filed multiple complaints in different jurisdictions amounting to forum shopping and abuse of process.

Parties
Appellant No.1 / Managing Director: Vijay Kumar Ghai; Appellants / Directors: Appellant Nos.2 and 3 (Directors); Respondent: The State of West Bengal & Ors.; Complainant / Respondent No.2: Respondent No.2 (authorized representative of SMC Global Securities Ltd., Delhi); Proforma Respondent No.3 / Company: M/s. Priknit Retails Limited (changed name to Priknit Apparels)
Jurisdiction
India
Judgment Date
22 March 2022
Procedural Posture
Criminal Appeal / Appeal to Supreme Court Against High Court Judgment in C.r.r. No.731 of 2017; Judgment on Merits Allowing Appeal and Quashing FIR and Related Proceedings
Outcome
Appeal allowed.
Legal Topics
Quashing of FIR, Section 482 Cr.p.c., Criminal Breach of Trust (s.405/406 Ipc), Cheating (ss.415/420 Ipc), Forum Shopping, Multiplicity of Proceedings, Abuse of Process
Criminal Procedure Criminal Law Company Law Quashing of FIR Section 482 Cr.p.c. Criminal Breach of Trust (s.405/406 Ipc) Cheating (ss.415/420 Ipc) Forum Shopping +2 more

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Parties

Vijay Kumar Ghai

Appellant No.1 / Managing Director

Appellant Nos.2 and 3 (Directors)

Appellants / Directors

The State of West Bengal & Ors.

Respondent

Respondent No.2 (authorized representative of SMC Global Securities Ltd., Delhi)

Complainant / Respondent No.2

M/s. Priknit Retails Limited (changed name to Priknit Apparels)

Proforma Respondent No.3 / Company

Procedural Posture

Criminal Appeal / Appeal to Supreme Court Against High Court Judgment in C.r.r. No.731 of 2017; Judgment on Merits Allowing Appeal and Quashing FIR and Related Proceedings

Legal Issues

  1. 1 Whether the allegations in the complaint/FIR and chargesheet disclose offences under Sections 406, 420 and 120B IPC
  2. 2 Whether mere breach of contract can be treated as criminal cheating or criminal breach of trust
  3. 3 Whether filing multiple complaints in different fora on same cause of action amounts to forum shopping/abuse of process

Ratio Decidendi

The FIR No.168 dated 28.03.2013 and consequent proceedings under Sections 406, 420 and 120B IPC against the appellants were quashed because the allegations, viewed prima facie, did not disclose dishonest or fraudulent intention required for cheating/criminal breach of trust, were essentially civil/contractual disputes, and the complainant had filed multiple complaints in different jurisdictions amounting to forum shopping and abuse of process.

Court Disposition

Appeal allowed.

Orders

  • Impugned judgment and order dated 01.10.2019 of the High Court set aside to the extent indicated.
  • FIR No.168 dated 28.03.2013 and proceedings in GR Case No.1221 of 2013 and consequent charge-sheeted proceedings against the appellants under Sections 406, 420 and 120B IPC quashed.