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Supreme Court of India

K. ASHOKAversusN.L. CHANDRASHEKAR & ORS.

Citation
2009 INSC 531
Decided
15 April 2009
Disposal
Appeal(s) allowed

Holding

The Supreme Court held that the complainant had locus standi and the complaint made out a prima facie case of offence under the Karnataka Cooperative Societies Act and the IPC, and therefore the criminal proceedings could not be quashed under Section 482.

Summary

The Director of a housing cooperative society filed a complaint under Section 200 of the CrPC alleging that the society's office bearers had cheated the society by allotting a plot at a price far below market value and making illegal gains, based on a report of the Joint Registrar under the Karnataka Cooperative Societies Act. A magistrate took cognizance of offences under Sections 420 and 34 IPC. The respondents sought quashing of the criminal proceedings under Section 482 of the CrPC; the High Court allowed the petition, holding that the complaint was imaginary and the complainant lacked locus standi. The Supreme Court set aside that order, holding that a member of the cooperative has locus standi, the allegations prima facie disclose offences under Section 109 of the Karnataka Cooperative Societies Act and the IPC, and Section 111 of the Act does not bar a court from taking cognizance of offences under other statutes. Consequently, the criminal proceedings were not liable to be quashed.

Issues considered

  • Whether a member/director of a cooperative society has locus standi to file a criminal complaint under Section 200 CrPC.
  • Whether the allegations in the complaint disclose a cognizable offence warranting cognizance, or whether they can be quashed under Section 482 CrPC.
  • Whether Section 111 of the Karnataka Cooperative Societies Act bars a court from taking cognizance of offences punishable under the IPC.
  • Whether the High Court erred in deeming the complaint imaginary and in quashing the proceedings.

Legislation cited

Subjects

locus standiSection 482 CrPCcooperative societiescheatingSection 420 IPCSection 109 Karnataka Cooperative Societies Actinherent jurisdictionquashing of criminal proceedings

Judgment

,., )                               [2009] 5 S.C.R. 961


                                       K. ASHOKA                                 A
                                            v.
                             N.L. CHANDRASHEKAR & ORS.
                         (Criminal Appeal Nos. 733-734 of 2009)
~

          ..                          APRIL 15, 2009
                                                                                 B
                       [S.B. SINHA AND CYRIAC JOSEPH, JJ.]

                     Code of Criminal Procedure, 1973 - s. 482 - Complaint
                alleging offence u!s. 420134 /PC - By Director of Housing Co-
                operative Society- Against office bearers of Society - On the    c
                basis of report of Registrar of Co-operative Society -
                Magistrate taking cognizance of the offence - High Court
               quashing the proceeding on the grounds that the Director had
~

               no locus standi to lodge the complaint and that a/legations
          ~    were imaginary - On appeal, held: Quashing of the                 D
          '
               proceedings not correct - Prima facie, the a/legations make
               out a case against the accused - Complainant as a member
               of the Society had the locus standi to file the complaint -
               Offences under Cooperative Societies Act as well as /PC
               made out - If an offence u/s. 109 of the Act is made out, there   E
               is no bar u/s. 111 of the Act on a court to take cognizance of
               an offence under any other Statute - Kamataka Co-operative
               Societies Act, 1959 - ss. 109 and 111.
        ·-A_
                    Appellant (Director of a House Building Co-operative
               Society) filed a complaint against the respondents (the           F
               office bearers of the Society) before Joint Registrar of Co-
               operative Societies alleging that the respondents allotted
               a site to a person at a much less price than its market price
               and made illegal gain. He sought investigation into the
               matter. Enquiry Report was against the respondents. On            G
    ;          the basis of the report, appellant filed a complaint u/s. 200
          ¥
~              Cr.P.C. in respect of commission of offence u/s. 420/34
               IPC. Magis,trate took cognizance of the offence.

                                            961                                  H
l
    962         SUPREME COURT REPORTS (2009] 5 S.C.R.            ,_
A Respondents filed petition u/s. 482 Cr.P.C. for quashing
    the criminal proceedings. High Court allowed the same.
    Hence the present appeals.

          Allowing the appeals, the Court
B      HELD:1. The High Court in exercise of its inherent        ~

  jurisdiction under Section 482 Cr.P.C. may quash a
  criminal proceeding inter alia in the event the allegations
  made in the complaint petition even if they are taken at
  their face value and accepted in their entirety does not
c disclose commission of a cognizable offence. The
  primary allegation against the respondents in the
  complaint petition make out an offence not only under the
  provisions of Section 109 of Karnataka Co-operative
  Societies Act, 1959, but also other offences. [Paras 11
D and 13] [970-C, F]
                                                                 1
       Indian Oil Corpn. vs. NEPC India Ltd. and Ors. (2006) 6
    sec 736, referred to.
          2. Section 109 of the Act provides for commission of
E offences under the said Act. Therein, no statutory
  embargo has been placed for a court to take cognizance
  of an offence under the provisions of IPC. If the
  allegations made in the complaint petition or in the first
  information report make out a case under IPC, Section 111
F of the Act, would constitute no bar for maintenance
                                                                 ~   .
  thereof being applicable only in respect of offences
  committed under the Act. The said statutory interdict
  therefore cannot be extended in regard to commission of
  an offence under any other Act. [Para 18] [974-H; 975-A-
G BJ

          3. Whether the allegations made in the complaint
                                                                 1 '
    petition are correct or not have to be considered during
    trial. The High Court in its impugned judgment proceeded
    inter alia on the premise that the appellant has no locus
H
                          K. ASHOKA v. N.L. CHANDRASHEKAR & ORS.               963
  >.>         .)




                       standi. It may be true that the allottee and the subsequent A
                        purchaser of the plot had not been impleaded as
                        accused but that by itself may not be a ground for
                      ··quashing the order of cognizance taken against the
                        respondents. If the role played by them in regard to that
                        part of the conspiracy is only to make the allottee a         B
                        member.and got the land allotted in his name by way of
                        camouflag~. appellant as a member of the society had a
                        locus standito file a complaint. [Para 15] [972-F·G]
                             4. The High Court is not correct to opine that no
                        document has been produced by the appellant to show
                                                                                      c
                        that the allottee made an assignment of the land in favour
                      · of the purchaser. Evidently, no document can be
                        produced for the purpose of showing that the actual
....;.                  amount of consideration for the said transaction
                        amounted to Rs.28,00,000/- although ostensibly the            D
                   ~
                        amount of Rs.10,20,000/- has been shown to be amount
                        of consideration in the registered document. It may be
                        true that the question as to whether the report of the
                        Registrar can be relied upon for the purpose of showing
 <                      as to how the act of cheating has been committed by the       E
                        respondents is a matter which must be considered at the
                        time of trial but there cannot be any doubt whatsoever
                        that so long as the report is not set aside, the same could
          .        )_
                        form the basis for forming of an opinion at least for the
                        purpose of proceeding against the respondents that they       F
                        manipulated the records of the cooperative society to
                        make unlawful gain for themselves and causing unlawful
                        loss to the society. [Para 16] [972-H; 973-A-D]
                            5. The opinion of the High Court that the averments
                                                                                  G
                        made in the complaint petition are imaginary is not based
         .;    ~
                        on any material. Even assuming that the complainant had
                      · a score to settle against the accused, the same by itself
•                       may not be a ground to quash the entire criminal
                                                                                      H
   ..
    964          SUPREME COURT REPORTS [2009] 5 S.C.R.
                                                                      ..       ~·




A proceedings particularly in view of the fact that at least a
  prima facie case has been established in view of the report
  of the Registrar. [Para 17] [974-G]

                          Case Law Reference:
                                                                                '-

B         (200G) s sec 736           Referred to.         Para 12     ~


        CRIMINAL APPELLATE JURISDICTION : Criminal Appeal
    No. 733-734 of 2009.

          From the Judgment & Order dated 01.08.2007 of the High
c Court of Karnataka at Bangalore in Criminal Petition No. 838/
    2007 CNV Criminal Petition No. 910 of 2007.

        G.V. Chandrashekar and Anjana Chandrashekar for the

D
    Appellant.

          S.N. Bhat and Kiran Suri for the Respondents.               1
                                                                                -   .

          The Judgment of the Court was delivered by

        S.B. SINHA, J. 1. Leave granted.
E                                                                                    ~
       2. N.G.E.F. Employees House Building Cooperative
  Society Limited (for short, "the society") is a society                           •
  incorporated and registered under the Karnataka Cooperative
  Societies Act, 1959 (for short, "the Act"). Appellant herein was
  a Director of the society. He filed a complaint petition alleging   (    '
F inter alia that the respondents herein who were the office-
  bearers of the society, earned a huge amount for themselves
  by alloting a site bearing No. 509 measuring 30' x 40' for a sum
  of Rs. 2,40,000/- to one Gopal, a name lender who in turn, sold
  the said site for a sum of Rs. 28,00,000/- to one
G Hanumanthegowda by a deed of sale dated 3.7.2006. However,



                                                                                -
  in the sale deed, the consideration amount was shown as
                                                                      f        I.
  Rs.10,20,000/-.
       It was contended that the respondents in connivance with
H the said Gopal made illegal gain as the market value of the said
                                                                                ..
         K. ASHOKA v. N.L. CHANDRASHEKAR & ORS.                 965
                          [S.B. SINHA, J.]
      property was about Rs.28 lakhs.                                  A

           3. The following facts are admitted.

           The land in question was acquired in the year 1985-86.
      The society formed a layout and sites were allotted ·to its
      members. However, few sites remained vacant. One of the B
      persons whose lands were acquired for the society, namely,
      Munivenkatappa (father of Gopal) allegedly had requested the
      society to release one acre of land for his personal use,
      pursuant whereto, the society resolved to release 337" x 132"
      of land in favour of his family. Another application was filed by C
      M. Gopal, son of said Munivenkatappa, in terms whereof
      request was again made to the said society for allotment of the
      land. The said request was received on 27.3.2006 and
      allotment of a site bearing No. 509 measuring 30' x 40' for a
      sum of Rs.2,40,000/- was made and a deed of sale was D
      executed in his favour on 7.4.2006. A possession certificate
      was also issued.

          Within a period of three months, said Gopal sold the said
      property in favour of Hanumanthegowda for a sum of E
      Rs.28,00,000/-. However, in the sale deed, the consideration
      amount was shown as Rs.10,20,000/-.

           4. Indisputably, a complaint was filed before the Joint
      Registrar of Cooperative Societies to cause an investigation
' >   thereinto. On or about 29.12.2006, a report was submitted by F
      him opining that the office bearers of the society, namely, the
      respondents herein in connivance with Gopal and by making
      him a tool in their hands, allotted the site which was sold for a
      sum of Rs. 27,60,000/-. A recommendation for recovery of the
      amount from the office bearers of the society was also made. G
      In his report, it was furthermore stated:

          "There is no site called No.509 in the approved plan of the
          Society. The Society has not produced any documents/
          records to show that the said Site No. 509 is released by H
    966          SUPREME COURT REPORTS [2009] 5 S.C.R.
                                                                              '            '•

A         BDA. The site No. 142 is existing and the same is allotted
          to one Smt. Shailaja Swamy and registered the same in
          her name by the Society as on 23/2/1995 itself. The
          certified copy of the Sale Deed is produced herewith and
          marked as "Annexure 13"·:
B
                As per the Orders of the Hon'ble High Court of           ..
          Karnataka, it has come to know that the alternative/another
          site was given to Smt. Shailaja Swamy during the period
          of Special Officer. The copy of the same is marked as
          "Annexure 14". It is further come to know that Smt. Shailaja
c         Swamy had approached the Hon'ble High Court of
          Karnataka by filing a writ petition against the Society on
          the grounds that the alternative site allotted to him cannot
          be made Khatha in her name because the said site is a
                                                                                            ,,
          C.A. site, which has been allotted and registered to her                         ~


D         by the Society. When this matter is going on, how can the
          Society allot the same i.e. No. 142 by naming it as Site
          No. 509 and illegally allotting to Sri Gopal and registering
          the same by the Society. This is an illegal act committed
          by the Board of Directors."
E
          5. Respondents, however, contend that the said enquiry
  was conducted without hearing them and other office bearers
  of the Society; no notice had been issued to them and no
  opportunity of being heard or to participate in the enquiry
F proceedings had been provided. It is furthermore contended that        ~        '
  the proceedings before the Joint Registrar is still pending.
         6. Thereafter, on the basis of the report submitted by the
    Joint Registrar, a complaint petition under Section 200 of the
  Code of Criminal Procedure (for short, "the Code") in respect
G of commission of an offence under Section 420 read with
  Section 34 of the Indian Penal Code (for short, "the IPC") was
  filed by the appellant, inter alia, alleging:                          i(           I,        '


          "10. The Complainant further submits while allotting site
H              No. 509 to Sri Gopal the Accused have played a
              K. ASHOKA v. N.L. CHANDRASHEKAR & ORS.                     967
    )
~
                            [S.B. SINHA, J.]
                         big fraud on the society. They do not know that there   A
                          is already a site bearing No. 142 which is existing
                          on the same land. The Accused have shifted site
                          No. 509 on site No. 142 and registered the same
                         in favour of Sri Gopal. The Complainant has
                       . obtained a certified copy of site No. 142 and site      B
                       . No. 509 and surprised to find both the schedules
                         one and the same. The sub registrar K R Puram
                         Bangalore who is having the copy of approved plan
                         of Sadananda Nagar Layout with him should have
                         observed this fraud and objected for registering this   c
                         site. While shifting any site by the society in the
                         approved plan the society will have to obtain
                         permission from the commissioner TPM Bangalore
                         Development Authority which the Accused have
                         failed to do the same. BOA has not released this        D
     ~                   site at all.

                 11.    The Complainant humbly submits Sri Gopal or any
                        of his family members are not eligible for any site
                        from the society since the society has already given
                        1.00 acre of land to their family way back in 1986 E
                        itself. The accused have made Sri Gopal as
                        Benami Owner and allotted a site in his favour at
                        Rs.200/- per square feet and sold the same through
                        him at Rs. 2,500 per square feet which is the
     >-                 market value at Sadananda Nagar Layout and F
                        distributed Rs.28,00,000 which is a big booty
                        among all. This is a clear case of misuse of their
                        position as office bearers and directors, cheating,
                        fraud and working against the interest of the
                        society."                                            G
                7. The said complaint petition filed by the appellant was
    .:..
           registered as CC No. 22069 of 2007 in the Court of Xth
           Additional. Chief Metropolitan Magistrate, Mayohall, Bangalore.
           The learned Magistrate took cognizance of the offence under
                                                                                 H
    968          SUPREME COURT REPORTS [2009] 5 S.C.R.
                                                                         ' -
A Section 420 read with Section 34 of the IPC and issued
  summons to the respondents.

      8. Respondents thereafter filed an application under
  Section 482 of the Code being Criminal Petition Nos. 838 and
  910 of 2007 in the High Court of Karnataka at Bangalore for
B
  quashing the entire criminal proceedings initiated by appellant.
  By reason of the impugned judgment, the said petition has
  been allowed by the High Court, holding:

          "12. At the very outset, it may be mentioned that according
c         to the complainant, there is no site bearing No. 509 in the
          layout formed by the Society. It is also submitted that the
          site bearing No. 142 is already sold but the boundaries of
          that site is mentioned to the site bearing No. 509. The
          complainant has not made the said Gopal allottee either
D         as witness or an accused. Taking into consideration the
          facts of the case, the first aggrieved person would be the     1
          allottee Sri Gopal, as the site already sold is allotted to
          him. It is stated that the site is sold by Mr. Gopal to
          Hanumanthe Gowda. Thus, the said purchaser
E         Hanumanthe Gowda would have been another aggrieved
          party to sue the vendor Mr. Gopal. There is no material
          placed on record to show that said Gopal has sold the site
          to Mr. Gowda. There is no material placed on record to
          show that said Gopal has sold the site to Mr. Hanumanthe
F         Gowda for a sum of Rs.28,00,000/- and that money was           ~

          got distributed among the accused. All the averments
          made in the complaint are nothing but imaginary. It is
          crystal clear that the respondent - complainant wants to
          settle his score against the accused/members of the
          society by abuse of process of law. Learned Magistrate
G
          erred in taking cognizance for the offence alleged against
          the accused. It is a fit case for quashing the proceedings."   :(


        9. Mr. G.V. Chandrashekar, learned counsel appearing on
    behalf of appellant would urge:-
H
            K. ASHOKA v. N.L. CHANDRASHEKAR & ORS.                       969
-)                              [S.B. SINHA, J.]
               i.     Appellant being a member of the society and                A
                      having an interest in the running of the affairs thereof
                      could maintain the aforementioned complaint
                      petition.

               ii.    The allegations made in the complaint petition             8
                      disclosed a cognizable offence and, thus, the High
                      Court committed a serious error in passing the
                      impugned judgment.

               iii.   Although        Gopal or for     that    matter
                      Hanumanthegowda had not been made as                       C
                      accused, they can be summoned at a later stage
                      wherefor such an application can be filed in the
                      inquiry or trial.

               iv.    Section 415 of the IPC providing for commission            o
                      of an act of cheating also in respect of the property,
                      the High Court committed a serious error in opining
                      that no case has been made out for issuance of
                      summons against the respondents.

             10. Mr. S.N. Bhat and Ms. Kiran Suri, learned counsel               E
         appearing on the behalf of the respondents, on the other hand,
         would contend:

              i.      No deception within the meaning of Section 415 of
                      the IPC having been committed by the respondents,          F
                      the learned Magistrate committed a serious error
                      of law in taking cognizance of an offence under
                      Section 420 of the IPC.

              ii.     The allegations made in the complaint petition even        G
                      if they are taken at their face value and accepted
                      in their entirety would merely disclose a case of
)   )'
                      misuse of power making allotment in favour of
                      Gopal at a lower price, which being an offence
                      within the meaning of the Act, only a complainant
                      in terms of the provisions thereof was maintainable.       H
    970           SUPREME COURT REPORTS [2009] 5 S.C.R.
                                                                             ~
                                                                                       -
A          iii.   No reliance could be placed on the report of the
                  Joint Registrar by the learned Magistrate as the
                  matter is sub judice before the High Court.

           iv.    The complaint petition filed by the appellant is an
                  abuse of the process of the court inasmuch as he
B
                  filed the complaint petition after he lost the election.   1

         11. It is now a well settled principle of law that the High
    Court in exercise of its inherent jurisdiction under Section 482
    of the Code may quash a criminal proceeding inter alia in the
c   event the allegations made in the complaint petition even if they
    are taken at their face value and accepted in their entirety does
    not disclose commission of a cognizable offence.

       12. Some of the principles which would be attracted for                          ~'
                                                                                        ~



D invoking the said jurisdiction have been laid down in Indian Oil
  Corpn. vs. NEPC India Ltd. & ors. [(2006) 6 SCC 736], are:                 ~



          "(i) A complaint can be quashed where the allegations
          made in the complaint, even if they are taken at their face
          value and accepted in their entirety, do not prima facie
E         constitute any offence or make out the case alleged
          against the accused.

          For this purpose, the complaint has to be examined as a
          whole, but without examining the merits of the allegations.
          Neither a detailed inquiry nor a meticulous analysis of the        ~     '
F
          material nor an assessment of the reliability or genuineness
          of the allegations in the complaint is warranted while
          examining prayer for quashing of a complaint.
          (ii) A complaint may also be quashed where it is a clear
G         abuse of the process of the court, as when the criminal
          proceeding is found to have been initiated with maladies/
                                                                                       ...
          malice for wreaking vengeance or to cause harm, or where           "'·
          the allegations are absurd and inherently improbable.

H         (iii) The power to quash shall not, however, be used to stifle
                 K. ASHOKA v. N.L. CHANDRASHEKAR & ORS.                     971
    - ;                        [S.B. SINHA, J.]
                   or scuttle a legitimate prosecution. The power should be         A
                   used sparingly and with abundant caution.

                   (iv) The complaint is not required to verbatim reproduce
                   the legal ingredients of the offence alleged. If the necessary
                   factual foundation is laid in the complaint, merely on the
          ~                                                                         B
                   ground that a few ingredients have not been stated in detail,
                   the proceedings should not be quashed. Quashing of the
                   complaint is warranted only where the complaint is so
                   bereft of even the basic facts which are absolutely
                   necessary for making out the offence.
                                                                                    c
                   (v) A given set of facts may make out : (a) purely a civil
                  wrong; or (b) purely a criminal offence; or (c) a civil wrong
                  as also a criminal offence. A commercial transaction or a
                  contractual dispute, apart from furnishing a cause of action
                  for seeking remedy in civil law, may also involve a criminal      D
                  offence. As the nature and scope of a civil proceedings
                  are different from a criminal proceeding, the mere fact that
                  the complaint relates to a commercial transaction or
                  breach of contract, for which a civil remedy is available or
                  has been availed, is not by itself a ground to quash the          E
                  criminal proceedings. The test is whether the allegations
                  in the complaint disclose a criminal offence or not."

                   13. The primary allegation against the respondents in the
    f    ~    complaint petition does not make out an offence only under the
              provisions of Section 109 of the Act as contended by Mr. Bhat         F
              but also other offences. A legal embargo in filing a complaint
              is contained in Section 109(6) of the Act, which reads as
              under:-

                   "109. (6). If any person--                                       G
)       ,,_        (i)    not eligible to become a member under Section 17
                          applies to a co-operative society for admission as
                          a member, or becomes a member, or after ceasing
                          to be a member under sub-section (2) of that
                                                                                    H
    972            SUPREME COURT REPORTS [2009] 5 S.C.R.
                                                                                '

A                  section acts as or exercises any rights or privileges
                   of a member of any such co-operative society;

           (ii)    exercise the rights of a member in contravention of
                   the provisions of Section 19;

B          (iii)   willfully fails to furnish the information or document   1
                   in contravention of the provisions of sub-section (3)
                   of Section 87;

           (iv)    grants a lease of the mortgaged property in
c                  contravention of sub-section (1) of Section 95,

          shall be punishable with imprisonment for a term which may
          extend to three months or with fine which may extend to
          three thousand rupees."

D      14. The allEigations made in the complaint petition disclose
                                                                            ~
  commission of a cognizable offence. A conspiracy is said to
  have been entered into for putting the society and
  consequentially the members to a great loss. A conspiracy is
  also said to have been hatched for the aforementioned purpose
E as a result whereof not only an allotment was made in favour
  of a person who was not entitled thereto but also allotted plot
  was assigned in favour of a third party for a huge sum.

       15. Whether the allegations made in the complaint petition
  are correct or not have to be considered during trial. The High           ~
F Court in its impugned judgment proceeded inter alia on the
  premise that the appellant has no locus standi. It may be true
  that Gopal and Hanumanthegowda had not been impleaded as
  accused but that by itself may not be a ground for quashing the
  order of cognizance taken against the respondents. If the role
G played by them in regard to that part of the conspiracy is only
  to make Gopal a member and got the land allotted in his name
  by way of camouflage, appellant as a member of the society                ~       '
  had a locus standi to file a complaint.

H         16. The High Court furthermore, in our opinion, is not
                     K. ASHOKA v. N.L. CHANDRASHEKAR & ORS.                   973
         ·"                        [S.B. SINHA, J.]
                  correct to opine that no document has been produced by the A
                  appellant to show that Gopal made an assignment of the land
                  in favour of Hanumanthegowda. Evidently, no document can be
                  produced for the purpose of showing that the actual amount of
..                consideration for the said transaction amounted to
                  Rs.28,00,000/- although ostensibly the amount of Rs.10,20,000/ B
          ~-
                  - has been shown to be amount of consideration in the
                  registered document. It may be true that the question as to
                  whether the report of the Registrar can be relied upon for the
                  purpose of showing as to how the act of cheating has been
                  committed by the respondents is a matter which must be c
                  considered at the time of trial but there cannot be any doubt
                  whatsoever that so long as the report is not set aside, the same
                  could form the basis for forming of an opinion at least for the
                  purpose of proceeding against the respondents that they
                  manipulated the records of the cooperative society to make D
                  unlawful gain for themselves and causing unlawful loss to the
                  society.

                       In Indian Oil Corpn. (supra) whereupon Ms. Suri has
                  placed strong reliance, this Court in the facts and circumstances
                  of the case therein although opined that no ca:;e of "criminal      E
                  breach of trust" as defined under Section 405 of the IPC has
                  been made out, holding:

                      "32. The essential ingredients of the offence of 'cheating'
     !        ~       are: (i) deception of a person either by making a false or      F
                      misleading representation or by other action or omission,
                      (ii) fraudulent or dishonest inducement of that person to
                      either deliver any property or to consent to the retention
                      thereof by any person or to intentionally induce that person
                      to do or omit to do anything which he would not do or omit      G
                      if he were not so deceived and which act or omission
                      causes or is likely to cause damage or harm to that person
     ~    ;<,
                      in body, mind, reputation or property."

                       Noticing some earlier decisions, it was opined:
                                                                                      H
    974         SUPREME COURT REPORTS [2009] 5 S.C.R.
                                                                             ~




A        "36. In this case, the complaints clearly allege that the
         accused with fraudulent intention to cheat and defraud the              ,.
         IOC, had induced IOC to resume supply of aircraft fuel on
         cash and carry basis, by entering into a further agreement
         dated 20.9.1997 and undertaking to clear the outstanding
B        amount of Rs. 18 crores approximately within the time
                                                                         ~
         stipulated in the Hypothecation Agreements. The sum and
         substance of the said allegation read with other averments
         extracted above, is that NEPC India, having committed
         default in Page 3170 paying the sum of Rs. 18 crores,
c        entered into a fresh agreement dated 20.9.1997 agreeing
         to clear the outstanding as per a fresh schedule, with the
         dishonest and fraudulent intention of pre-empting and
         avoiding any action by IOC in terms of the hypothecation
         deeds to take possession of the aircrafts. Though the
                                                                                  ~
         supplies after 20.9.1997 were on cash and carry basis, the
D
        fraudulent intention is alleged to emanate from the promise      ~

        under the said agreement to make payment, thereby
        preventing immediate seizure (taking possession) of the
        aircrafts by IOC. This allegation made in addition to the
        allegation relating to ·removal of engines, has been lost
E       sight of by the-High Court. All that is to be seen is whether
        the necessary allegations exist in the complaint to bring
        the case within Section 415. We are clearly of the view that
        the allegations in the complaint constitute such an offence.
        We are not concerned with the proof of such allegations
F       or ultimate outcome of trial at this stage."                    1


        17. The opinion of the High Court that the averments made
  in the complaint petition are imaginary is not based on any
  material. Even assuming that the complainant had a score to
G settle against the accused, the same by itself may not be a
  ground to quash the entire criminal proceedings particularly in
  view of the fact that at least a prima facie case has been            '>\ ...
  established in view of the report of the Registrar.

        18. Section 109 of the Act provides for commission of
H
                 K. ASHOKA v. N.L. CHANDRASHEKAR & ORS.               975
                               [S.B. SINHA, J.]
            offences under the said Act. Therein, no statutory embargo has A
            been placed for a court to take cognizance of an offence under
            the provisions of IPC. If the allegations made in the complaint
            petition or in the first information report make out a case under

-         · the IPC, Section 111 of the Act, to which our attention has been
            drawn, would constitute no bar for maintenance thereof being B
            applicable only in respect of offences committed under the said
            Act. The said statutory interdict therefore cannot be extended
            in regard to commission of an offence under any other Act.

                    19. For the reasons aforementioned, the impugned
              judgment of the High Court cannot be sustained, which is set C
              aside accordingly. The appeals are allowed. It is made clear
              that we have not entered into the merit of the matter and, thus,
              all contentions of the parties shall remain open.

l    ~·
              K.K.T.                                    Appeals allowed.
.,
 '



.         .




1
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