Bombay High Court High Court

Mahendra vs Vivek on 14 January, 2010

Bombay High Court
Mahendra vs Vivek on 14 January, 2010
Bench: P. R. Borkar
                                    (1)




                                                                     
              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                         BENCH AT AURANGABAD




                                             
                CRIMINAL WRIT PETITION NO. 422 OF 2009
                                 WITH
                CRIMINAL WRIT PETITION NO. 423 OF 2009




                                            
                                 WITH
                CRIMINAL WRIT PETITION NO. 424 OF 2009
                                 WITH
                CRIMINAL WRIT PETITION NO. 454 OF 2009




                                   
                               * * * * *
                      
                CRIMINAL WRIT PETITION NO. 422 OF 2009
                                 WITH
                CRIMINAL WRIT PETITION NO. 423 OF 2009
                     
                                 WITH
                CRIMINAL WRIT PETITION NO. 424 OF 2009


    Mahendra s/o. Kanhaiyyalal Jain                   ..       Petitioner
       

    Age 47 years, Occ. Business,
    R/o. 176, Ponam Peth,
    



    Jalgaon, Dist. Jalgaon.

                                    Versus





    1.   Vivek s/o. Manohar Jagtap                    ..       Respondents
         Age. 40 years, Occ. Service,
         Residing at Mahavir Nagar,
         Near Milk Federation,
         Jalgaon.





    2.   Suresh s/o. Bansilal Jain,
         Age. 43 years, Occ. Business,
         Residing at 16, Ponam Peth,
         Jalgaon.

    3.   The State of Maharashtra




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    Shri K.C. Sant, Advocate for the petitioner.




                                             
    Shri V.B. Patil, Advocate for respondent No.1.
    Shri Vijay Sharma, Advocate for respondent No.2.
    Shri B.V. Wagh, A.P.P. for respondent No.3/State.

                                    WITH




                                            
                CRIMINAL WRIT PETITION NO. 454 OF 2009


    Mahendra s/o. Kanhaiyyalal Jain                   ..       Petitioner




                                    
    Age 47 years, Occ. Business,
    R/o. 176, Ponam Peth,
                      
    Jalgaon, Dist. Jalgaon.

                                    Versus
                     
    1.   Vivek s/o. Manohar Jagtap                    ..       Respondents
         Age. 40 years, Occ. Service,
         Residing at Mahavir Nagar,
       

         Near Milk Federation,
         Jalgaon.
    



    2.   Suresh s/o. Bansilal Jain,
         Age. 43 years, Occ. Business,
         Residing at 16, Ponam Peth,
         Jalgaon.





    3.   Surendra s/o. Nathumal Lunkad,
         Age. 60 years, Occ. Business,
         R/o. Lunkad Tower,
         Pandey Dairy Square (Chowk),
         Jalgaon, Tal. & Dist. Jalgaon.





    4.   The State of Maharashtra


    Shri K.C. Sant, Advocate for the petitioner.
    Shri V.B. Patil, Advocate for respondent No.1.
    Shri Vijay Sharma, Advocate for respondent No.2 & 3.
    Shri B.V. Wagh, A.P.P. for respondent No.4/State.




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                                              CORAM :       P.R. BORKAR,J.
                                              DATED :       14.01.2010

    ORAL JUDGMENT :-




                                                  
    1.          Rule.     Rule   made   returnable   forthwith.     With 

consent of learned counsel appearing for the parties, these

writ petitions are taken up for final hearing.

2. These four writ petitions are filed by original

complainant Mahendra Kanhaiyyalal Jain being aggrieved by the

decisions of Sessions Judge dated 05.03.2009 in Criminal

Revision Application Nos. 187, 185, 186 and 188 of 2008

respectively, whereby he allowed the Revision Applications

and set aside the order of issuance of process passed by the

Chief Judicial Magistrate, Jalgaon, on 15.04.2008, in R.C.C.

Nos. 179, 177, 178 & 180 respectively, thereby the learned

Chief Judicial Magistrate issued processes against the

respondents other than the State of Maharashtra, for

committing offences punishable under sections 465, 467, 471 &

474 all read with section 34 of the Indian Penal Code

(“I.P.C.”).

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3. Some of the facts regarding which there was no more

dispute before me are that the complainant was member of Shri

Mahavir Urban Co-operative Society Limited, Jalgaon

(hereinafter referred to as “credit society”). The credit

society is doing banking business at Jalgaon. Respondent

Suresh Jain was President (Chairman) of said credit society

and he resigned on 02.01.2007 and thereafter respondent No.1

– Vivek Jagtap was appointed as an Administrator. He took

charge on 15.01.2007. All these four writ petitions pertain

to four complaint lodged by same complainant i.e. present

petitioner, who is common in all four writ petitions. Thus

writ petition No. 422 of 2009 relates to minutes of meeting

of Board of Directors held on 03.07.2006, writ petition No.

423 of 2009 relates to minutes of meeting of Board of

Directors held on 25.03.2006, writ petition No. 424 of 2009

relates to minutes of meeting of Board of Directors held on

22.04.2006 and writ petition No. 454 of 2009 relates to

minutes of meeting of Board of Directors held on 03.08.2006.

It is case of the petitioner that his brother Jitendra was

also member of the credit society and as against Jitendra

several proceedings such as complaint for offence punishable

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under section 138 of the Negotiable Instruments Act, so also

for recovery of loan and other civil matters were filed by

the credit society. The petitioner and his brother had

doubts regarding genuineness and correctness of the document

and transparency of the administration from time to time.

Jitendra Jain, brother of the petitioner applied for getting

copies of minutes of above said four meetings of Board of

Directors on 18.01.2007. Just prior to that on 15.01.2007

respondent Vivek Jagtap had taken over charge as an

Administrator and the copies were supplied to Jitendra and

respondent Vivek Jagtap signed those copies as true copies.

Thereafter, on 13.02.2007 present petitioner also made

application for getting copies of minutes of above said

meetings and also some other documents and he also received

copies. On comparison of the copies received by Jitendra and

the petitioner, it was found that in the copies of minutes

supplied to Jitendra Jain, there were no signatures made by

respondent No.2 Suresh Jain – Chordiya, but same were

appearing in the copies supplied to the petitioner. There

were signatures of respondent No. 2 – Suresh Jain – Chordiya

made for showing his presence at the meetings and also as a

Chairman of the credit society. In the copy of minutes of

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meeting on 03.08.2006 supplied to the petitioner, respondent

Surendra Lunkad was seen to have signed showing his presence

but there was no signature of respondent – Suresh Lunkad on

the copy supplied to Jitendra Jain. This according to

present petitioner amounted to commission of various offences

for which the learned Chief Judicial Magistrate has issued

processes.

4.

It may also be noted that before issuing process,

after verification of complaints, the learned Chief Judicial

Magistrate passed order directing inquiry under section 202

of the Cr.P.C. and report of the police was received.

Thereafter, on consideration of complaint, verification and

police report, said orders of issuance of processes were

issued by the learned Chief Judicial Magistrate. As against

said orders of issuance of processes in all four complaints,

criminal revision applications were filed in the Sessions

Court, Jalgaon. The learned Sessions Judge came to a

conclusion that necessary ingredients of the offences were

not disclosed and issuances of processes was not proper and

he allowed the revision applications and set aside orders of

issuance of processes. As against the same, these writ

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petitions are filed.

5. Before we go to the actual discussion of the

arguments and the law relevant for decision, it is necessary

to reproduce other contents of the complaint, which are

identical in all complaints, besides the things stated above.

In para 6 of the complaint, it is stated that there were

signatures of respondent No.2 Suresh Jain – Chordiya for

remaining present at the meetings and also as a Chairman of

the credit society on the copies of minutes of meetings

supplied to present petitioner. In para 7 it is stated that

after 15.01.2007 onwards the proceeding book of the credit

society was in possession of respondent No.1 – Vivek Jagtap

as an administrator of the credit society and without his

consent, connivance or aid, respondent No.2 – Suresh Jain –

Chordiya or Surendra Lunkad could not have signed. It is

also argued that the very fact that there was no signatures

of respondent No. 2 – Suresh Jain – Chordiya or of Surendra

Lunkad on the copies supplied to Jitendra Jain, but they were

there on the copies supplied to the petitoner indicates that

those were made in between 18.01.2007 to 02.03.2007 when the

petitioner received copies and this shows sharing of common

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intention. It is also stated in para 8 of the complaint that

subsequent signatures were made in regularizing the

proceedings. It is stated in para 9 of the complaint that

the proceedings are valuable documents and making false

entries therein is a forgery. In para 10 of the complaint it

is stated that the complainant has proved that signatures

were made later on and forgery need not be for causing

wrongful loss to the complainant. Then it is said that there

is no bar of Section 197 of Cr.P.C.

6. The processes were issued for offence punishable

under section 465, 467, 471, 474 read with section 34 of the

I.P.C. and these are all offences related to forgery and

aggravated form thereof. Thus, section 465 of the Indian

Penal Code provides punishment for forgery. Section 467 of

the I.P.C. relates to offence of forging documents which are

valuable, security or will etc., while Section 471 of the

I.P.C. relates to using forged documents as genuine. Section

474 of the I.P.C. deals with possessing any document knowing

it to be forged and intending to use it is as genuine.

Section 463 of the I.P.C. defines forgery as follows:-

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“S. 463. Whoever makes any false document
or false electronic record or part of a document or

electronic record, with intent to cause damage or
injury, to the public or to any person, or to
support any claim or title, or to cause any person
to part with property, or to enter into any express
or implied contract, or with intent to commit fraud

or that fraud may be committed, commits forgery.”

7. Section 464 of the I.P.C. defines making of false

document and for our purpose following portion of section 464

of the I.P.C. is relevant.

“464. A person is said to make a false
documenr or false electronic record –

First – who dishonestly or fraudulently –

(a) makes, signs, seals or executes a document or

part of a document;

(b) makes or transmits any electronic record or
part of any electronic record;

(c) affixes any digital signature or any electronic
record;

(d) makes any mark denoting the execution of a
document or the authenticity of the digital

signature,

with the intention of causing it to be believed
that such document or part of document, electronic
record or digital signature was made, signed,
sealed, executed, transmitted or affixed by or by
the authority of a person by whom or by whose
authority he knows that it was not made, signed,

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sealed, executed or affixed; or

Secondly. – Who, without lawful authority,
dishonestly or fraudulently, by cancellation or
otherwise, alters a document or an electronic
record in any material part thereof, after it has
been made, executed or affixed with digital

signature either by himself or by any other person,
whether such person be living or dead at the time
of such alteration; or

x x x x x x

Explanation 1 – Signature of his own

name may amount to forgery.

x x x x x x”

8. The analysis of above said sections 463 and 464

clearly indicates that a person is said to make false

documents if he dishonestly or fraudulently signs or without

lawful authority, dishonestly or fraudulently alters a

document. The words “dishonestly” and “fraudulently” are

defined under section 24 and 25 of the I.P.C. The word

“dishonestly” is defined as “whoever does anything with the

intention of causing wrongful gain to one person or wrongful

loss to another person, is said to do that thing,

‘dishonestly'”. “Fraudulently” is defined as “a person is

said to do a thing fraudulently if he does that thing with

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intent to defraud but not otherwise”. So, “dishonestly” and

“fraudulently” are essential ingredients of offences for

which orders of issuance of processes were passed by the

learned Chief Judicial Magistrate.

9. In this case the learned advocates for the

petitioner and the respondents have taken me through the

complaint, report of police under section 202 of the Cr.P.C.

and its accompaniments. Police have given report under 202

of the Cr.P.C. that no offence of forgery was disclosed. It

is rightly argued by the learned advocate Shri K.C. Sant that

the learned Chief Judicial Magistrate was not bound by the

report of Police and he could have formed his own opinion on

the material placed before him. The learned advocate Shri

Vijay Sharma stated that absolutely there is no whisper how

the act of signing minutes, may be belatedly, was dishonest

or fraudulent. It is not case of the complainant that at the

concerned meetings of the Board of Directors, respondent No.2

Suresh Jain – Chordiya or Surendra Lunkad was not present.

It is not his case at any stage that any of the resolution

mentioned in the meetings was added, deleted, changed or

altered. So, merely signing a document in absence of proof

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that act was done dishonestly or fraudulently, does not

amount to any offence.

10. The learned advocate Shri K.C. Sant for the

petitioner stated that signatures on the minutes of meetings

were put long after meetings. Respondent No.2 – Suresh Jain

– Chordiya and Surendra Lunkad made signatures when the

documents were in possession of respondent No.1 – Vivek

Jagtap, who was an Administrator. Respondent No.1 should not

have given access of the document to any one without

authority. So, under these circumstances, there is some

dishonest intention. It is difficult to believe that one

would make signature without absence of any dishonest

intention. In my considered opinion it is one thing to say

that there might be some dishonest intention and it is

another thing to say that the complaint, verification or the

material collected by Police in inquiry under section 202 of

the Cr.P.C. disclose such intention.

11. On the other hand it is argued by Adv. Shri Vijay

Sharma that this complaint is filed with ulterior and mala

fide intention. He produced on record report of police

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submitted under section 202 of the Cr.P.C. and its

accompaniments, which are taken on record today. He referred

to letter dated 11.12.2006 addressed by the Special Recovery

Officer of the credit society to the District Deputy

Registrar, Co-operative Societies, Jalgaon. Therein, it is

stated that present complainant and members of his family

have taken loans of lakhs of rupees. He gave details of the

amounts owed and it is stated that total amount of Rs.

2,27,57,441/- were due. Allegations are made against the

petitioner of blackmailing the credit society on the basis of

information collected under the Right to Information Act etc.

Adv. Shri Vijay Sharma also stated that as per police report,

police made inquiry with the Dy. Registrar, Co-operative

Societies, Jalgaon and as per letter dated 04.01.2007 it was

informed that there was no period mentioned in bylaws or any

other provisions of law within which signatures of the

Chairman or other members should be obtained on the minutes

of meetings.

12. Several authorities are cited by both sides. Adv.

Shri Vijay Sharma cited case of Vaidya Kuldip Raj Kohil V/s.

She State of Maharashtra, 2002 Vo. 104 (2) Bom.L.R.418. In

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that case this Court has observed that where in a private

complaint investigation by police was directed and the report

discloses no offence, Magistrate issues process without

application of mind, it would be misuse of process of law.

It is argued by Adv. Shri Sharma that while passing order of

issuance of process, the magistrate ought to have stated what

new material has come before him, which made him to think

that this was a case of issuance of process. Earlier the

Magistrate has observed while passing order on 26.07.2007

that investigation was required to be done by the concerned

police for the purpose of deciding whether or not there is

sufficient ground for proceeding and therefore he directed

inquiry under section 202 of the Cr.P.C. by the concerned

police. Therefore, in the order of issuance of process, the

Magistrate ought to have mentioned what new material was

there, on the basis of which he felt that prima facie case of

issuance of process was made out. Adv. Shri Sharma has

referred to para 18 of the judgment passed by the Sessions

Judge.

13. The learned advocate Shri K.C. Sant for the

petitioner cited case of U.P. Pollution Control Board V/s.

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Dr. Bhupendra Kumar Modi and Another, (2009) 2 S.C.C.147. In

paras 39 to 41 of the said case, following observations are

made:-

“39. It is our endeavour to point out
that the High Court has quashed the complaint
arising in an environmental matter in a casual
manner by exercising power under Section 482

Cr.P.C. This Court has held that exercise of power
under Section 482 of the Code is the exception and

under the rule there are three circumstances under
which the inherent jurisdiction may be exercised
i.e. (a) to give effect to an order of the Court;

(b) to prevent abuse of the process of the Court;

(c) to otherwise secure the ends of justice.

40. It is true that it is neither possible nor
desirable to lay down any inflexible rule which
would govern the exercise of inherent jurisdiction.

While exercising inherent powers either on civil or
criminal jurisdiction, the Court does not function

as a Court of Appeal or Revision. The inherent
jurisdiction though wide has to be exercised
sparingly, carefully and with caution. It should be
exercised to do real and substantial justice and if

any attempt is made to abuse that authority so as
to produce injustice, the Court has power to
prevent abuse. When no offence is disclosed by the
complaint, the Court may examine the question of
fact. When complaint is sought to be quashed, it is
permissible to look into the materials to assess

what the complainant had alleged and whether any
offence is made out even if the allegations are
accepted in toto.

41. When exercising jurisdiction under Section
482 of the Code, the High Court could not
ordinarily embark upon an enquiry whether the
evidence in question is reliable or not or whether

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on a reasonable appreciation of it the accusation
would not be sustained. To put it clear, it is the

function of the trial Judge to do so. The Court
must be careful to see that its decision in
exercise of its power is based on sound principles.
The inherent power should not be exercised to
stifle a legitimate prosecution. If the allegations

set out in the complaint do not constitute offence
of which cognizance has been taken by the
Magistrate, it is open to the High Court to quash
the same in exercise of the inherent powers under
Section 482 of the Criminal Procedure Code. x x x x

x x x ”

13.

In the case of M/s. India Carat Pvt. Ltd., V/s.

State of Karnataka and Another, AIR 1989 S.C. 885, the

Supreme Court has observed in para 16 that the Magistrate can

take into account the statements of the witnesses examined by

the police during the investigation and take cognizance of

the offence complained of and order the issue of process to

the accused. Section 190 (1) (b) does not lay down that a

Magistrate can take cognizance of an offence only if the

investigating given an opinion that the investigation has

made out a case against the accused. The Magistrate can

ignore the conclusion arrived at by the investigating officer

and independently apply his mind to the facts emerging from

the investigation and take cognizance of the case. Adv. Shri

Vijay Sharma argued that no new material was placed before

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the Magistrate to hold that there was sufficient ground to

proceed against the accused.

14. In the case of Mahendra Saw alias Mahendra Kumar

Sahu V/s. State of Bharkhand, 2006 Cri.L.J. 1974, Single

Bench of Jharkhand High Court has laid down that at that

stage of enquiry, magistrate is expected to see only whether

there are sufficient grounds for proceeding against accused

for an offence. He cannot go into truth or otherwise of

allegation made in complaint. Order dismissing complaint by

giving a finding that evidence of witness found to be

unbelievable was set aside. In the present case dishonest or

fraudulent intention in making signature is not spelt out by

material on record.

15. Case of Soma Chakravarty V/s. State (Th. CBI), 2007

AIR SCW 3683 was cited. In para 21 of the said case it is

observed that appellant’s advocate contended that in view of

the earlier decisions no charge could be framed against the

appellant as there was no material to show that she was prima

facie guilty or had any mens rea. The Court disagreed. In

the facts of the case, it is held that there was mens rea and

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prima facie evidence.

16. In People’s Union for Civil Liberties and Another

V/s. Union of India, 2003 AIR SCW 7233, paras 25 and 27 would

be relevant. That was case under POTA and there is

presumption regarding knowledge of terrorist act for

possession as can be seen from para 27. Section 4

presupposes conscious possession. In para 25 it is observed

that “Mens rea” element is sine qua non for offences under

I.P.C.

17. Another case cited by the learned advocate Shri

Sharma is Mohammad Atullah V/s. Ram Saran Mahto, AIR 1981

S.C. 1155. In that case it is laid down that in case the

Magistrate directed investigation in to a complaint under

section 202 of Cr.P.C. and when the report merely stated that

prima facie case is made out against some persons, but not

against others and no details were given, unless there is

additional material before the Magistrate, taking cognizance

of order of issuance of process is illegal.

18. In the case of Mahindra & Mahindra Financial

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Services Limited and Another V/s. Rajiv Dubey (2009) 1 S.C.C.

706, in para 19, case of State of Haryana V/s. Bhajan Lal,

AIR 1992 SC 604 is cited. Adv. Shri Sharma submitted that

the case falls under cluase 1 and 7 of para 102 of case of

Bhajanlal. He argued that allegations made in the complaint,

even if they are taken on the face value and accepted in its

entirety do not constitute any offence of forgery as main

ingredients of the offence are missing. He also argued that

criminal proceedings are initiated by the petitioner with

ulterior motive. They are maliciously instituted with

ulterior motive to bring pressure on respondent Nos. 1 and 2

to take back proceedings for recovery of loans initiated

against the petitioner and members of his family and

therefore this Court should not interfere with the orders

passed by the Sessions Judge.

19. Last case cited before this Court is Jagdish Ram

V/s. State of Rajasthan and another, 2004 AIR SCW 1342. In

that case it is laid down that at the stage of taking

cognizance of offence, Magistrate is required to consider

whether there are sufficient grounds exist or not for further

proceeding in the matter.

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20. After considering arguments advanced before this

Court and considering the complaints and verification and

police enquiry papers, in my opinion, it is not proved that

in making signatures on minutes of meetings of Board of

Directors, there was any dishonest or fraudulent intention.

It is not that decisions taken in the meetings were in any

way altered or changed or any resolution was added or

deleted. It is not case of the petitioner that at said

meetings, respondent No.2 was not present. It is also not

case that respondent No.3 in Writ Petition No. 454 of 2009

was not present at the meeting held on 03.08.2006. In the

circumstances, in my opinion, these writ petitions deserve to

be dismissed.

21. In the result, the writ petitions are dismissed.

    Rule discharged.                                            sd/-

                                                     [P.R. BORKAR,J.]





    snk/2010/JAN10/crwp422.09
                                   "AUTHENTICATED COPY"



                                      (S.N. KULKARNI)
                                   P.A. TO HON'BLE JUDGE




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