TECHNOFAB ENGINEERING LTD Vs. BENGAL MILLS STORES SUPPLY CO.
LAWS(SC)-2016-7-122
SUPREME COURT OF INDIA
Decided on July 04,2016

TECHNOFAB ENGINEERING LTD Appellant
VERSUS
Bengal Mills Stores Supply Co. Respondents

JUDGEMENT

- (1.) Leave granted. This appeal has been preferred against judgment and order dated 22 nd September, 2014 of the High Court of Judicature at Bombay in Criminal Writ Petition No.1040 of 2014. By the said order, the High Court declined to quash proceedings against the appellants under Section 417 read with Section 34 IPC while quashing proceedings under Section 420 IPC.
(2.) Respondent No.1-complainant filed the impugned complaint dated 17th February, 2009 in the Court of Additional Chief Metropolitan Magistrate at Mumbai being Criminal Case No.60/SW/2009 stating that the complainant was having business of export, import, stockiest and dealers of pipes etc. The accused approached the complainant for the engineering works and on 16 th June, 2008, the accused gave a letter of proposed requirement of pipes. This was followed by letter of intent dated 16 th June, 2008. Thereafter, the accused gave manufacturing clearance on 31 st July, 2008. Though the complainant had a policy not to accept any order without initial deposit of letter of credit and asked the accused to deposit the initial amount or give letter of credit, but the accused with mala fide intention undertook to provide letter of credit later. On this the complainant undertook manufacture of pipes. Thereafter, on 29th October, 2008, the accused sought reduction in price. But suddenly on 5th December, 2008 the accused cancelled the order.
(3.) The accused appellant filed a petition in the Bombay High Court submitting that the complaint was abuse of the process of criminal law. Dispute between the parties was a civil dispute. The goods were to be supplied to the NTPC and the letter of intent had to be cancelled in view of the developments with the NTPC. The complainant was not a manufacturer and was merely a supplier and suffered no loss.;


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