SANGHI BROTHERS PVT LTD Vs. SANJAY CHOUDHARY
LAWS(SC)-2008-10-123
SUPREME COURT OF INDIA (FROM: MADHYA PRADESH)
Decided on October 03,2008

Sanghi Brothers Pvt Ltd Appellant
VERSUS
Sanjay Choudhary Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) Challenge in this appeal is to the judgment of a learned Single Judge of the Madhya Pradesh High Court, Indore Bench allowing the Criminal Revision Petition filed by the respondents. Challenge in the Criminal Revision Petition was to the order dated 14.8.2006 passed by learned Judicial Magistrate, First Class, Indore in Criminal case No. 2114 of 2003. By the said order charges were framed against the respondents. The learned Judicial Magistrate directed framing of charge for offence punishable under Sections 420, 406 read with Section 34 IPC.
(3.) Background facts as projected by "appellant in a nutshell are as follows: The appellant-company is a registered company dealing with the sale of auto vehicles at Indore and respondents are Directors of the Chetak Construction Ltd. a registered company having its Head Office at Chetack Chamber, R.N.T. Mark, Indore and accused No. 3 is the Secretary of that company. In the year 1988-89 accused approached the complainant company for obtaining lease of Tata dumpers and light commercial vehicles for a specific period on monthly lease rent basis. Respondents assured complainant company that as per the agreement they will pay monthly lease rent without any default and to support their claim, they will also furnish back guarantee for due performance of the condition of the contract. In view of that proposal, agreements were, executed between the parties on 13.5.1988, 14.11.1988 and 25.3.1989 for delivery of 25 dumpers, 10 dumpers, 20 dumpers and 4 light commercial vehicles and accused persons took the delivery of the aforesaid vehicles from the complainant and also agreed for payment of the monthly lease rent for 36 months. For the due performance of agreement, necessary documents were executed by the accused persons in favour of the complainant. After some time, complainant came to know that accused No. 4 was unable to pay him lease rent according to the agreement. Then complainant called accused No. 1 and 2 to execute personal guarantee bonds in favour of the complainant and after some persuasion, so called personal guarantee bonds were executed by the accused Nos. 1 and 2 in favour of the complainant for due performance of the agreement on 6.12.1991. They also gave collateral security in favour of the complainant of a property belonging to M/s Choudhary Builders Private Ltd. and also produced board resolution dated 6.2.1990 to the complainant. Complainant was unable to get any rent in time from the accused persons and also found that applicants/accused in violation of the condition of the agreement have illegally sold eight vehicles to other parties with ulterior motive, thus committing criminal breach of trust also and had cheated the complainant. On these allegations, complainant through its Manager filed a complaint under Sections 420 and 406 IPC against the respondents. Before the trial Court, learned trial Magistrate after taking the cognizance against the accused recorded before charge evidence and on consideration of before charge evidence by order dated 14.8.2006 ordered for framing of the charge as noted above. The order framing of charge was questioned before the High Court in the revision petition. After noticing the stands of the petitioners before it and the respondent who is the present appellant, the High Court noted as follows: All these cases are distinguishable with the facts of the present case. In the present case, applicants are not praying quashment of the proceedings under the provisions of Section 482 of the Criminal Procedure Code.- The applicants/accused came up before this Hon ble Court against the order of framing of the charge and on the basis of the prima facie evidence recorded before charge and is trying to assail the findings of the trial Court and submits that no charge under Section 420 and 406 IPC is clearly made out against the applicants on the basis of evidence on record and it is also not so unimpeachable that if it is not rebutted then a conviction can be based on it. The High Court was of the view that framing of charge was not sustainable.;


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