{"id":85312,"date":"2008-12-10T00:00:00","date_gmt":"2008-12-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shashi-chhabra-and-others-vs-sublime-chit-fund-company-private-on-10-december-2008"},"modified":"2016-08-20T03:09:25","modified_gmt":"2016-08-19T21:39:25","slug":"shashi-chhabra-and-others-vs-sublime-chit-fund-company-private-on-10-december-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shashi-chhabra-and-others-vs-sublime-chit-fund-company-private-on-10-december-2008","title":{"rendered":"Shashi Chhabra And Others vs Sublime Chit Fund Company Private … on 10 December, 2008"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Shashi Chhabra And Others vs Sublime Chit Fund Company Private … on 10 December, 2008<\/div>\n
           Criminal Misc. No. 13732-M of 2008.\n                       -1-\n\nIn the High Court of Punjab and Haryana at Chandigarh.\n\n                         Criminal Misc.No.13732-M of 2008.\n\n                         Date of decision:10.12.2008.\n\nShashi Chhabra and others.\n\n                                                 ...Petitioners.\n\n            Versus\n\nSublime Chit Fund Company Private Limited.\n\n                                                 ...Respondent.\n\n            ...\n\nCoram:      Hon'ble Mr. Justice K. C. Puri.\n\n            ...\n\nPresent;    Mr. Pankaj Bhardwaj Advocate for the petitioners.\n\n            Mr.Pardeep Rajput Advocate for the respondent.\n\n            ...\n\nK. C. Puri, J.\n<\/pre>\n
Judgment.\n<\/p>\n
            In this petition, the prayer of the petitioners is for<\/p>\n
quashing complaint dated 3.4.2007, bearing No.20\/10.4.2007,<\/p>\n
pending in the Court of Ms.Lakhwinder Kaur, Judicial Magistrate<\/p>\n
Ist Class, Amritsar, Annexure P-6 and the subsequent summoning<\/p>\n
order dated 4.12.2007, Annexure P-7, passed by the said Court.\n<\/p>\n
           Criminal Misc. No. 13732-M of 2008.\n<\/p>\n
                      -2-<\/span><\/p>\n
          Concisely,       the     facts    of   the   case   are   that\n\nrespondent\/complainant           filed a complaint under Sections\n\n<\/pre>\n
406\/420\/506\/34 IPC, Annexure P-6, against the petitioners on the<\/p>\n
allegations that they approached the complainant Company for<\/p>\n
availing financial assistance for promoting their business and<\/p>\n
house hold requirements. The Company after taking surety of<\/p>\n
Shashi Chhabra, Vijay Chhabra and Prabhjot Singh, advanced loan<\/p>\n
of Rs.6,00,000\/- to the accused on 26.6.2001. The accused persons<\/p>\n
assured to repay the said amount to the complainant within a short<\/p>\n
span of time along with interest at simple rate of 18% per annum.<\/p>\n
The accused executed loan documents, a voucher dated 26.6.2001,<\/p>\n
demand promissory note and receipt dated 26.6.2001, surety bond<\/p>\n
dated 26.6.2001, personal statement and declaration by Shashi<\/p>\n
Chhabra, personal statement and declaration by Vijay Chhabra by<\/p>\n
putting their signatures and thumb impressions on the documents<\/p>\n
for due payment of the said amount along with interest.<\/p>\n
          It has further been averred that the accused gave<\/p>\n
assurance and took liability of the repayment of the loan amount<\/p>\n
received by them.      On the surety of accused, the complainant<\/p>\n
Company advanced the amount to the accused and the accused<\/p>\n
received the amount with the connivance of each other.\n<\/p>\n
           Criminal Misc. No. 13732-M of 2008.\n<\/p>\n
                      -3-<\/span><\/p>\n
           In the presence of complainant, the accused persons<\/p>\n
received the amount of Rs.6 lacs in cash and accused Shashi<\/p>\n
Chhabra, Vijay Chhabra put cash currency notes in two bags and<\/p>\n
after that the accused persons took away money to their home. The<\/p>\n
accused made part payment towards monthly interest of Rs.9,000\/-<\/p>\n
per month. The said payment was made through cheques by Shashi<\/p>\n
Chhabra, Vijay Chhabra. The accused did not pay the principal<\/p>\n
amount inspite of repeated demands and also stopped making<\/p>\n
payment of interest after April, 2004. In January, 2007, the accused<\/p>\n
flatly refused to repay any amount to the complainant.<\/p>\n
           It has further been alleged that the accused persons by<\/p>\n
false persuasions, assurance and promises under inducement<\/p>\n
received the said amount from the complainant. The accused also<\/p>\n
undertook to repay the said amount in a short span of time but they<\/p>\n
failed to repay the same. The accused have,thus, breached the trust<\/p>\n
of complainant and have committed criminal breach of contract.<\/p>\n
They have caused wrongful loss to the complainant. They have<\/p>\n
also cheated and defrauded the company with mala fide and<\/p>\n
ulterior motive and intention.\n<\/p>\n
           Ms.Lakhvinder Kaur, Judicial Magistrate Ist Class,<\/p>\n
Amritsar vide impugned order dated 4.12.2007, Annexure P-\n<\/p>\n
           Criminal Misc. No. 13732-M of 2008.\n<\/p>\n
                      -4-<\/span><\/p>\n
7,ordered the summoning of the accused to stand trial for an<\/p>\n
offence punishable under Section 420 IPC.\n<\/p>\n
           The petitioners have sought quashing of the complaint<\/p>\n
dated 3.4.2007, Annexure P-6, and summoning order dated<\/p>\n
4.12.2007, Annexure P-7, on various grounds which will be dealt<\/p>\n
with in the later part of the judgment.\n<\/p>\n
           Powers under Section 482 Cr.P.C can be invoked in<\/p>\n
case the allegations taken on their face value make out a case for<\/p>\n
proceeding criminally. Law has been enunciated in State of<\/p>\n
Haryana and others v. Ch.Bhajan Lal and others<\/a>, AIR 1992<\/p>\n
Supreme Court 604 in which it has been held as under:-<\/p>\n
           “1) Where the allegations made in the First Information<\/p>\n
           Report or the complaint, even if they are taken at their<\/p>\n
           face value and accepted in their entirety do not prima<\/p>\n
           facie constitute any offence or make out a case against<\/p>\n
           the accused.<\/p><\/blockquote>\n
           2. Where the allegations in the First Information Report<\/p>\n
           and other materials, if any, accompanying the F.I.R do<\/p>\n
           not disclose a cognizable offence, justifying an<\/p>\n
           investigation by police officers under S.156(1) of the<\/p>\n
           Code except under an order of a Magistrate within the
\n Criminal Misc. No. 13732-M of 2008.\n<\/p>\n
            -5-<\/span><\/p>\n
purview of S.155(2) of the Code.\n<\/p>\n
3. Where the controverted allegations made in the FIR<\/p>\n
or complaint and the evidence collected in support of<\/p>\n
the same do not disclose the commission of any offence<\/p>\n
and make out a case against the accused.\n<\/p>\n
4. Where, the allegations in the F.I.R, do not constitute<\/p>\n
a cognizable offence but constitute only a non-<\/p>\n
cognizable offence, no investigation is permitted by a<\/p>\n
police officer without an order of a Magistrate as<\/p>\n
contemplated under S.155(2) of the Code.\n<\/p>\n
5. Where the allegations made in the FIR or complaint<\/p>\n
are so absurd and inherently improbable on the basis of<\/p>\n
which no prudent person can ever reach a just<\/p>\n
conclusion that there is sufficient ground for proceeding<\/p>\n
against the accused.\n<\/p>\n
6. Where there is an express legal bar engrafted in any<\/p>\n
of the provisions of the Code or the concerned Act<\/p>\n
(under which a criminal proceeding is instituted) to the<\/p>\n
institution and continuance of the proceedings and\/or<\/p>\n
where there is a specific provision in the Code or the<\/p>\n
concerned Act, providing efficacious redress for the
\n           Criminal Misc. No. 13732-M of 2008.\n<\/p>\n
                      -6-<\/span><\/p>\n
           grievance of the aggrieved party.\n<\/p>\n
           7. Whether a criminal proceeding is manifestly attended<\/p>\n
           with mala fide and\/or where the proceeding is<\/p>\n
           maliciously instituted with an ulterior motive for<\/p>\n
           wreaking vengeance on the accused and with a view to<\/p>\n
           spite him due to private and personal grudge. (Para<\/p>\n
           108).\n<\/p>\n
           Where allegations in the complaint did constitute a<\/p>\n
           cognizable offence justifying registration of a case and<\/p>\n
           investigation thereon and did not fall in any of the<\/p>\n
           categories of cases enumerated above,calling for<\/p>\n
           exercise of extraordinary powers or inherent powers,<\/p>\n
           quashing of FIR was not justified.”\n<\/p>\n
           In the present case,the allegations against the petitioner<\/p>\n
are that they have taken loan of Rs.six lacs in the year 2001 on a<\/p>\n
simple rate of interest of 18% and they have not returned the said<\/p>\n
amount. The petitioners have been summoned under Section 420<\/p>\n
IPC . Even if the entire allegations are taken on their face value, it<\/p>\n
is merely a transaction of borrowing the money and no criminal act<\/p>\n
is made out. In authority Anil Mahajan Versus Bhor Industries<\/p>\n
Limited and another, (2006)1 Supreme Court Cases (Criminal)
\n           Criminal Misc. No. 13732-M of 2008.\n<\/p>\n
                      -7-<\/span><\/p>\n
746, it has been held that fraudulent and dishonest intention must<\/p>\n
be shown to be existing from the very beginning of the transaction.<\/p>\n
From mere failure to keep the promise at a subsequent stage,<\/p>\n
offence of cheating cannot be made out. Distinction between<\/p>\n
offence of cheating and mere breach of contract should be kept in<\/p>\n
mind. Mere use of words cheating in the complaint would not be<\/p>\n
sufficient. Substance of the complaint has to be seen. In the present<\/p>\n
case, even if the substance of complaint is taken as it is, it pertains<\/p>\n
to civil case of breach of contract and not a criminal case of<\/p>\n
offence of cheating.\n<\/p>\n
           One another circumstance which militates against the<\/p>\n
case of the petitioners is that petitioner No.2 got registered FIR<\/p>\n
No.38 dated 14.3.2007 under Section 420 IPC at Police Station C<\/p>\n
Division, Amritsar against complainant Kulwant Singh Nagi. The<\/p>\n
accused in that case approached Additional Sessions Judge for<\/p>\n
grant of anticipatory bail and offered to deposit Rs.30,000\/- but the<\/p>\n
said amount was not deposited and ultimately the petition was<\/p>\n
dismissed by the Additional Sessions Judge. However, later on, he<\/p>\n
was granted anticipatory bail by the High Court and the present<\/p>\n
complaint was subsequently filed on 3.4.2007 after the registration<\/p>\n
of said case. No doubt, the disputed question of fact, whether one
\n           Criminal Misc. No. 13732-M of 2008.\n<\/p>\n
                      -8-<\/span><\/p>\n
party owes money to the other cannot be adjudicated upon in the<\/p>\n
present petition but it is made out from the record that there is civil<\/p>\n
liability and criminal proceedings cannot be used as an oppressive<\/p>\n
measure to settle civil score.\n<\/p>\n
           Consequently, this petition stands accepted. The<\/p>\n
complaint dated 3.4.200- bearing No.20 of 10.4.2007, Annexure P-<\/p>\n
6, and the subsequent order dated 4.12.2007, Annexure P-7, issued<\/p>\n
by the Court of Ms.Lakhwinder Kaur, Judicial Magistrate Ist Class,<\/p>\n
Amritsar stand quashed. Further proceedings in pursuance of said<\/p>\n
complaint also stands quashed.<\/p>\n
\n\nDecember 10,2008.                               ( K. C. Puri )\nJaggi                                                Judge\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Shashi Chhabra And Others vs Sublime Chit Fund Company Private … on 10 December, 2008 Criminal Misc. No. 13732-M of 2008. -1- In the High Court of Punjab and Haryana at Chandigarh. Criminal Misc.No.13732-M of 2008. Date of decision:10.12.2008. Shashi Chhabra and others. …Petitioners. Versus Sublime Chit Fund Company Private Limited. …Respondent. […]<\/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":[8,28],"tags":[],"class_list":["post-85312","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nShashi Chhabra And Others vs Sublime Chit Fund Company Private ... on 10 December, 2008 - Free Judgements of Supreme Court & 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\/shashi-chhabra-and-others-vs-sublime-chit-fund-company-private-on-10-december-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shashi Chhabra And Others vs Sublime Chit Fund Company Private ... on 10 December, 2008 - 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