{"id":134615,"date":"2011-09-19T00:00:00","date_gmt":"2011-09-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/bhagwandas-auto-finance-ltd-vs-state-ors-on-19-september-2011"},"modified":"2015-05-22T08:45:41","modified_gmt":"2015-05-22T03:15:41","slug":"bhagwandas-auto-finance-ltd-vs-state-ors-on-19-september-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/bhagwandas-auto-finance-ltd-vs-state-ors-on-19-september-2011","title":{"rendered":"Bhagwandas Auto Finance Ltd. vs State &amp; Ors. on 19 September, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Bhagwandas Auto Finance Ltd. vs State &amp; Ors. on 19 September, 2011<\/div>\n<div class=\"doc_author\">Author: Pradeep Nandrajog<\/div>\n<pre>*      IN THE HIGH COURT OF DELHI AT NEW DELHI\n\n%                        Date of Decision : 19th September, 2011\n\n+      CRL.M.C.3749\/2008\n\n       BHAGWANDAS AUTO FINANCE LTD.\n       &amp; ORS.                           ..... Petitioners\n              Through: Mr.Yadunandan Bansal and Mr.Rauf\n                       Rahim, Advocates\n\n                                   versus\n\n       STATE &amp; ORS.                                   ..... Respondents\n                Through:           Mr.Pawan Sharma, Standing\n                                   Counsel (Crl.) for State\/R-1\n                                   Mr.Madhukar Pandey, Advocate for\n                                   R-2\n\n       CRL.M.C.2751\/2008\n\n       RAVI BHARTIA                                    ..... Petitioner\n                Through:           Mr.Amit Bansal and Mr.Diwaker\n                                   Maheshwari, Advocates\n\n                                   versus\n\n       STATE &amp; ANR.                                ..... Respondents\n                Through:           Mr.Pawan Sharma, Standing\n                                   Counsel (Crl.) for State\/R-1\n                                   Mr.Madhukar Pandey, Advocate for\n                                   R-2\n\n       CORAM:\n       HON'BLE MR. JUSTICE PRADEEP NANDRAJOG\n\n\n    1. Whether the Reporters of local papers may be allowed\n       to see the judgment?\n    2. To be referred to Reporter or not?\n    3. Whether the judgment should be reported in the Digest?\n\n\n\nCRL.M.C.No.3749\/2008 &amp; 2751\/2008                             Page 1 of 7\n PRADEEP NANDRAJOG, J.\n<\/pre>\n<p>1.         Respondent No.2 in the above-captioned petitions i.e.<br \/>\nVikas     International    (Hong   Kong)   Ltd.   has   filed   Criminal<br \/>\nComplaint No.16736\/2006 before the learned Metropolitan<br \/>\nMagistrate praying that the four accused listed therein be<br \/>\npunished for having committed offences punishable under<br \/>\nSection 420\/120-B IPC.\n<\/p>\n<p>2.         Accused No.1 is Bhagwan Dass Auto Finance Ltd.<br \/>\naccused No.3 and 4 are Shri Ravinder Aggarwal and Shri Vishal<br \/>\nAggarwal, the Managing Director and Director respectively of<br \/>\naccused No.1. Accused No.2 Shri Ravi Bhartia, is stated to be<br \/>\nthe authorized signatory of accused No.1. The complaint reads<br \/>\nas under:-\n<\/p>\n<blockquote><p>        &#8220;CRIMINAL COMPLAINT AGAINST THE ABOVE ACCUSED<br \/>\n        PERSONS FOR THE OFFENCE PUNISHABLE U\/S<br \/>\n        420\/120-B OF THE INDIAN PENAL CODE.\n<\/p><\/blockquote>\n<blockquote><p>        Sir,<\/p>\n<p>        It is respectfully submitted as under:-\n<\/p><\/blockquote>\n<blockquote><p>     1. That Vikas International (Hong Kong) Ltd. is a<br \/>\n        subsidiary of Vikas Projects Pvt. Ltd., a Company<br \/>\n        incorporated under The Companies Act, 1956 and<br \/>\n        deals in the business of Export\/Import and acting as a<br \/>\n        commission Agent in the business of iron ores and<br \/>\n        other allied products and enjoys high reputation in the<br \/>\n        market and are known for their credibility.\n<\/p><\/blockquote>\n<blockquote><p>     2. That accused no.1 is the company, which deals in the<br \/>\n        business of iron ore. Accused no.2 Sh.Ravi Bhartia is<br \/>\n        the authorized signatory of accused no.1. Accused<br \/>\n        no.3 Sh.Ravindan Aggarwal is the Managing director of<\/p>\n<p><span class=\"hidden_text\">CRL.M.C.No.3749\/2008 &amp; 2751\/2008                            Page 2 of 7<\/span><br \/>\n       accused no.1 and accused no.4 Sh.Vishal Aggarwal is<br \/>\n      the executive director of accused no.1.\n<\/p><\/blockquote>\n<p>   3. That all the accused persons entered into a criminal<br \/>\n      conspiracy, object of which was to cheat the<br \/>\n      complainant.     In pursuance of above criminal<br \/>\n      conspiracy, accused No.1 through accused no.2 to 4,<br \/>\n      with the intention to cheat the complainant,<br \/>\n      approached the complainant to find out a buyer in the<br \/>\n      foreign country for the sale of iron ore fines. They<br \/>\n      offered lucrative commission to the complainant.<br \/>\n      Believing the above representation, assurance and<br \/>\n      undertaking to be true, the complainant and their<br \/>\n      group made various efforts and spent huge amount<br \/>\n      and man power to find out a buyer namely Fremery<br \/>\n      Resources Ltd., which was interested in buying iron<br \/>\n      ore fines from India. Various negotiations had taken<br \/>\n      place between the accused persons and the buyer and<br \/>\n      ultimately a deal was struck and a contract was<br \/>\n      executed between accused no.1 through accused no.2<br \/>\n      and the buyer. It was agreed that the complainant is<br \/>\n      entitled to have a commission @ US$1 per MT of the<br \/>\n      shipped quantity from the seller i.e. accused no.1 for<br \/>\n      the services rendered by them in identifying the buyer<br \/>\n      and for the execution of the contract.\n<\/p>\n<p>   4. That the accused no.1 successfully exported and sold<br \/>\n      the goods to the buyer and received a substantial<br \/>\n      payment for the same. At the instance of accused<br \/>\n      no.2, the complainant raised an invoice of US$ 17695\/-<br \/>\n      against the accused no.1 for the agreed commission.\n<\/p>\n<p>   5. That in order to avoid the agreed payment of the<br \/>\n      commission to the complainant, all the accused<br \/>\n      persons started raising flimsy disputes and malafidely<br \/>\n      started denying the role of the complainant. All the<br \/>\n      accused persons were very much aware that the<br \/>\n      complainant is entitled for the commission of US$<br \/>\n      17695 for the services rendered by them.\n<\/p>\n<p><span class=\"hidden_text\">CRL.M.C.No.3749\/2008 &amp; 2751\/2008                    Page 3 of 7<\/span><\/p>\n<p>      6. That all the accused persons, in pursuance of their<br \/>\n        conspiracy, induced the complainant to invest money<br \/>\n        and man power to identify the buyer and also to get a<br \/>\n        deal for which both accused have no intention to pay<br \/>\n        and therefore they have committed an offence<br \/>\n        punishable U\/s 420\/120-B of I.P.C.\n<\/p>\n<p>       PRAYER<br \/>\n            In the above circumstances, it is therefore<br \/>\n       prayed that all the above accused persons may please<br \/>\n       be summoned, tried and punished for the offence<br \/>\n       committed U\/s 420\/120-B of I.P.C.&#8221;\n<\/p>\n<p>3.        From a perusal of the complaint which consists of 6<br \/>\nparagraphs, it is to be found that in para 1 the complainant has<br \/>\nstated its juristic entity and the business it is engaged in i.e.<br \/>\nacting as a Commission Agent pertaining to, amongst other<br \/>\nproducts, iron ore. In para No.2 of the complaint the juristic<br \/>\nentity of the accused has been disclosed and in para 3 the<br \/>\ncontract between the parties, on basis whereof the complaint,<br \/>\nhas been filed have been stated.\n<\/p>\n<p>4.        In the first sentence of para 3 it is stated that the<br \/>\naccused entered into a criminal conspiracy to cheat the<br \/>\ncomplainant. In the second sentence it is stated that pursuant<br \/>\nto the conspiracy accused No.1 approached complainant<br \/>\nthrough accused No.2 to 4 to find a foreign buyer and in the<br \/>\nthird sentence it is stated that accused No.2 to 4 offered<br \/>\nlucrative commission.\n<\/p>\n<p>5.        What was the lucrative commission and what were the<br \/>\nterms on which commission would be paid have not been<br \/>\nstated. Was the commission to be paid when a deal was struck<br \/>\n<span class=\"hidden_text\">CRL.M.C.No.3749\/2008 &amp; 2751\/2008                      Page 4 of 7<\/span><br \/>\n with a foreign buyer or was it to be paid after the contract was<br \/>\ncompleted with the foreign buyer? Nothing has been stated.\n<\/p>\n<p>6.        In the fourth sentence of para 3 it is pleaded that<br \/>\nbelieving the assurances to be true the complainant made<br \/>\nefforts and spent huge amount and manpower to find a buyer,<br \/>\nnamely, Fremery Resources Ltd.\n<\/p>\n<p>7.        What amount was spent and in what manner to find<br \/>\nthe foreign buyer? No particulars have been stated.\n<\/p>\n<p>8.        In the fifth sentence of the paragraph it is pleaded that<br \/>\nvarious negotiations have taken place between the accused<br \/>\nand the buyer and a deal was struck and the contract was<br \/>\nexecuted between the buyer and accused No.1.\n<\/p>\n<p>9.        What was the contract struck? No pleadings qua the<br \/>\nsame.     In what manner the complainant was instrumental in<br \/>\nsettling the contract, other than finding a foreign buyer? No<br \/>\npleading qua the same.\n<\/p>\n<p>10.       In the sixth sentence of the paragraph it is pleaded<br \/>\nthat it was agreed that the complainant would be entitled to<br \/>\ncommission @ US$1 per MT of the shipped goods to the buyer<br \/>\nidentified.\n<\/p>\n<p>11.       There are no averments as to what quantity of iron ore<br \/>\nwas shipped. The averment in the first sentence of paragraph<br \/>\n4 that accused No.1 successfully exported the good and<br \/>\nreceived substantial payment are bereft of even a simple<br \/>\nstatement pertaining to the quantify shipped and the price<br \/>\nreceived.\n<\/p>\n<p><span class=\"hidden_text\">CRL.M.C.No.3749\/2008 &amp; 2751\/2008                        Page 5 of 7<\/span><\/p>\n<p> 12.       In paragraph 5 it is pleaded that the accused started<br \/>\nraising flimsy disputes and malafidely denied the role of the<br \/>\ncomplainant. What are the particulars of the flimsy disputes?<br \/>\nNone have been stated.\n<\/p>\n<p>13.       It is apparent that the complaint is as vague as<br \/>\nvagueness can be and ex-facie is a crude attempt to ensnare<br \/>\nthe accused in the clutches of criminal law to extract money.\n<\/p>\n<p>14.       Since it is settled law that documents annexed with the<br \/>\ncomplaint can be considered, I would simply highlight that the<br \/>\ndocuments would evidence that accused No.1 is in serious<br \/>\nlitigation with the foreign buyer Fremery Resources Ltd. and<br \/>\nhas not received the payment due to accused No.1 for the<br \/>\ngoods which were exported.\n<\/p>\n<p>15.       Now, in the absence of any pleadings in the complaint<br \/>\nthat the commission was payable when the contract was<br \/>\nexecuted with the foreign buyer identified by the complainant,<br \/>\ncan it be said that the accused has breached the contract, or<br \/>\nthat it induced the complainant to find a foreign buyer with the<br \/>\nintention to cheat the complainant? The answer would be \u201eNo\u201f.\n<\/p>\n<p>16.       It is apparent that the dispute between the parties is of<br \/>\na civil nature.\n<\/p>\n<p>17.       The plea of learned counsel for the complainant that<br \/>\nthe malice of the accused is apparent from the fact that they<br \/>\nhave directed the complainant to raise a bill directly on<br \/>\nFremery Resources Ltd. and thus the complaint must be<br \/>\nallowed to proceed ignores the fact that the foreign buyer<br \/>\nidentified by the complainant with whom the accused entered<br \/>\ninto a contract is not paying the money to the accused No.1 for<br \/>\n<span class=\"hidden_text\">CRL.M.C.No.3749\/2008 &amp; 2751\/2008                        Page 6 of 7<\/span><br \/>\n the good received and since the complainant was the one who<br \/>\nfound the foreign buyer, within the confines of business ethics,<br \/>\nI find, prima-facie of course, nothing wrong in the accused<br \/>\ntelling the complainant to received whatever commission he<br \/>\ndesires from the party he identified as a prospective buyer for<br \/>\nthe accused.\n<\/p>\n<p>18.       In the decision reported as (2007) 12 SCC 1 Inder<br \/>\nMohan Goswami &amp; Anr. Vs. State of Uttaranchal &amp; Ors., the<br \/>\nSupreme Court held that a High Court having inherent power<br \/>\nunder Section 482 Cr.PC, though obliged to exercise the same<br \/>\nsparingly, carefully and with great caution, would be fully<br \/>\njustified in exercising the power to (i) give effect to an order<br \/>\nunder the Code, (ii) prevent abuse of the process of Court; and\n<\/p>\n<p>(iii) to otherwise secure the ends of justice &#8211; to be exercised ex<br \/>\ndebito justitiae to do real and substantial justice for the<br \/>\nadministration of which alone the courts exist and it is the duty<br \/>\nof the court to ensure that criminal prosecution is not used as<br \/>\nan instrument of harassment or for seeking private vendetta or<br \/>\nwith an ulterior motive to pressurize the accused.\n<\/p>\n<p>19.       The captioned petitions filed by the accused are<br \/>\nallowed. The complaint filed by respondent No.2 is quashed.<br \/>\nThe order summoning the accused is also quashed.\n<\/p>\n<p>                                    (PRADEEP NANDRAJOG)<br \/>\n                                            JUDGE<br \/>\nSEPTEMBER 19, 2011<br \/>\nrk<\/p>\n<p><span class=\"hidden_text\">CRL.M.C.No.3749\/2008 &amp; 2751\/2008                      Page 7 of 7<\/span>\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Bhagwandas Auto Finance Ltd. vs State &amp; Ors. on 19 September, 2011 Author: Pradeep Nandrajog * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 19th September, 2011 + CRL.M.C.3749\/2008 BHAGWANDAS AUTO FINANCE LTD. &amp; ORS. &#8230;.. Petitioners Through: Mr.Yadunandan Bansal and Mr.Rauf Rahim, Advocates versus STATE [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-134615","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bhagwandas Auto Finance Ltd. vs State &amp; Ors. on 19 September, 2011 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/bhagwandas-auto-finance-ltd-vs-state-ors-on-19-september-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bhagwandas Auto Finance Ltd. vs State &amp; 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