{"id":249134,"date":"2010-08-23T00:00:00","date_gmt":"2010-08-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/chandansinh-vs-state-on-23-august-2010"},"modified":"2016-03-05T11:20:07","modified_gmt":"2016-03-05T05:50:07","slug":"chandansinh-vs-state-on-23-august-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/chandansinh-vs-state-on-23-august-2010","title":{"rendered":"Chandansinh vs State on 23 August, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Chandansinh vs State on 23 August, 2010<\/div>\n<div class=\"doc_author\">Author: Jayant Patel,&amp;Nbsp;<\/div>\n<pre id=\"pre_1\">   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nCR.MA\/4958\/1997\t 2\/ 4\tJUDGMENT \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nCRIMINAL\nMISC.APPLICATION No. 4958 of 1997\n \n\nWith\n\n\n \n\nCRIMINAL\nMISC.APPLICATION No. 5428 of 1997\n \n\nWith\n\n\n \n\nCRIMINAL\nMISC.APPLICATION No. 5329 of 1997\n \n\n \nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE JAYANT PATEL\n \n \n=========================================================\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n1\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tReporters of Local Papers may be allowed to see the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n2\n\t\t\n\t\t \n\t\t\t \n\nTo be\n\t\t\treferred to the Reporter or not ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n3\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\ttheir Lordships wish to see the fair copy of the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n4\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tthis case involves a substantial question of law as to the\n\t\t\tinterpretation of the constitution of India, 1950 or any order\n\t\t\tmade thereunder ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n5\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tit is to be circulated to the civil judge ?\n\t\t\n\t\n\n \n\n \n=========================================================\n\n \n\nCHANDANSINH\nCHAMPAVAT - Applicant(s)\n \n\nVersus\n \n\nSTATE\nOF GUJARAT &amp; 2 - Respondent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nPR NANAVATI for\nApplicant(s) : 1, \nMR KP RAVAL Ld. APP for Respondent(s) : 1, \nMR\nAJ PATEL for Respondent(s) :\n2, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE JAYANT PATEL\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 12\/04\/2010 \n\n \n\n \n \nCOMMON\nORAL  JUDGMENT<\/pre>\n<p id=\"p_1\">1.\tAs<br \/>\nthe facts are common, all the applications are being considered by<br \/>\nthis common Judgment.\n<\/p>\n<p id=\"p_1\">2.\tThe<br \/>\nshort facts relevant for the present petitions are as under:\n<\/p>\n<p id=\"p_2\">3.\tThe<br \/>\noriginal complainant filed a complaint before the learned Magistrate<br \/>\nfor the offence under sec. 406, 420, 465, 467, 471 read with <a href=\"\/doc\/37788\/\" id=\"a_1\">section<br \/>\n34<\/a> and <a href=\"\/doc\/1128948\/\" id=\"a_1\">120(B)<\/a> of IPC as well as for the offence under sec. 63 and 68<br \/>\nof the <a href=\"\/doc\/1353758\/\" id=\"a_2\">Companies Act<\/a>.\n<\/p>\n<p id=\"p_3\">4.\tThe<br \/>\nallegations in the complaint is that the payment of the application<br \/>\nmoney for purchase of the share was made by the private placement<br \/>\nand, there was A buy-back agreement by the Promoters and Financier of<br \/>\nthe Company. Thereafter, as per the buy-back agreement, the cheque<br \/>\nwas issued but the same has not been honoured, for which, the<br \/>\ncomplaint is filed by Vinodkumar Hiralal Patel under sec. 138 of the<br \/>\n<a href=\"\/doc\/1132672\/\" id=\"a_3\">Negotiable Instruments Act<\/a>. The accusation in the complaint is that<br \/>\nsince the buy-back agreement has not been acted upon for the payment<br \/>\nas per the cheque has not been made the offence as constituted. The<br \/>\nsecond accusation in the complaint is that there were certain<br \/>\ndeclaration in the prospectus which as per the complainant were false<br \/>\nand no details are available about the place at which the amount of<br \/>\npublic issue is kept, therefore, the offence is under the <a href=\"\/doc\/1353758\/\" id=\"a_4\">Companies<br \/>\nAct<\/a>, are constituted as well as it would also result into for<br \/>\nconstitution of the offence under sec. 465, 467, 471 of <a href=\"\/doc\/1569253\/\" id=\"a_5\">IPC<\/a> read with<br \/>\nsec. 63 and 68 of the <a href=\"\/doc\/1353758\/\" id=\"a_6\">Companies Act<\/a>. It appears that the learned<br \/>\nMagistrate directed for investigation under sec. 156(3) of <a href=\"\/doc\/445276\/\" id=\"a_7\">CrPC<\/a>, and<br \/>\naccordingly, the complaint was registered as M. Case No. 20\/1997 at<br \/>\nSidhhpur Police station. Under the circumstances, the present<br \/>\npetitions for quashing of the complaint.\n<\/p>\n<p id=\"p_4\">5.\tThe<br \/>\nfirst accusation for not honouring the buy-back agreement, even if<br \/>\nconsidered as it is, it would not constituted the offence and it<br \/>\nwould be essentially a civil dispute for enforcement of buy-back<br \/>\nagreement against the Finance Company who sold the share by private<br \/>\nplacement. It further appears that  based on the buy-back agreement,<br \/>\nthe cheque was given in favour of Vinodbhai Hiralal Patel and the<br \/>\nsaid cheque has been dishonoured, therefore, when there is a civil<br \/>\nliability created on account of buy-back agreement of the share and<br \/>\nif such an agreement is not honoured, it cannot be said that the<br \/>\nbasic ingredients of the offence under sec. 406 or 420 of <a href=\"\/doc\/1569253\/\" id=\"a_8\">IPC<\/a> would<br \/>\nbe satisfied.\n<\/p>\n<p id=\"p_5\">6.\tThe<br \/>\nsecond accusation made for the mis-statement in the prospectus  and<br \/>\nnot proper accounting of the share money in the account of the<br \/>\ncompany, even if considered as it is, it would be an offence under<br \/>\nthe <a href=\"\/doc\/1353758\/\" id=\"a_9\">Companies Act<\/a>, for which, the competent authority to file the<br \/>\ncomplaint, would be Registrar of the Companies. The status of the<br \/>\ncomplainant is not mentioned by the applicant as that of the<br \/>\nshare-holder of the company who has been conferred right as<br \/>\nshare-holder by allotment of the shares, but it appears that the<br \/>\nstatement made in the complaint is that the petitioner applied for<br \/>\nshares by payment of the subscription amount in part. Under the<br \/>\ncircumstances, for the alleged offence under the <a href=\"\/doc\/1353758\/\" id=\"a_10\">Companies Act<\/a> are<br \/>\nconcerned, the original complainant can at the most approach to the<br \/>\nRegistrar of Companies who may examine the matter and if the<br \/>\ncomplaint is filed by the Registrar of Companies, then only the<br \/>\ncognizance could be taken or in any case, the complaint could be<br \/>\nmaintained. Sec. 621 of the <a href=\"\/doc\/1353758\/\" id=\"a_11\">Companies Act<\/a> makes the aforesaid<br \/>\nposition clear.  It further appears that by way of short circuit a<br \/>\ncivil remedy for enforcement of the buy-back agreement of the shares,<br \/>\nthe present complaint is filed though there is no offence constituted<br \/>\nas per the allegation made in the complaint under <a href=\"\/doc\/1569253\/\" id=\"a_12\">IPC<\/a>.\n<\/p>\n<p id=\"p_6\">7.\tIn<br \/>\nview of the above, no useful purpose will be served in further<br \/>\ninvestigation of the complaint which may also result into the abuse<br \/>\nof power. Hence, the complaint being M. Case No. 20\/1997 of Sidhhpur<br \/>\nPolice Station is quashed. Rule is made absolute to the aforesaid<br \/>\nextent in Criminal Misc. Application Nos. 4958\/1997 and 5428\/1997.\n<\/p>\n<p id=\"p_7\">8.\tIn<br \/>\nview of the order passed in main matter, no further order would be<br \/>\nrequired to be  passed in Criminal Misc. Application No. 5329\/1997<br \/>\nand the same stands disposed of accordingly.\n<\/p>\n<p id=\"p_8\">(JAYANT<br \/>\nPATEL, J.)<\/p>\n<p>mandora\/<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Chandansinh vs State on 23 August, 2010 Author: Jayant Patel,&amp;Nbsp; Gujarat High Court Case Information System Print CR.MA\/4958\/1997 2\/ 4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD CRIMINAL MISC.APPLICATION No. 4958 of 1997 With CRIMINAL MISC.APPLICATION No. 5428 of 1997 With CRIMINAL MISC.APPLICATION No. 5329 of 1997 For Approval and [&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":[16,8],"tags":[],"class_list":["post-249134","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chandansinh vs State on 23 August, 2010 - Free Judgements of Supreme Court &amp; 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