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  • Sections 417, 420 and 511 of Indian Penal Code.
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Citation Codes
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citation codes
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  • Sections 417, 420 and 511 of Indian Penal Code.
Smart Summary

Factual and Procedural Background

The applicant challenged First Information Report No. 6 of 2007 and charge-sheet case No. 257 of 2007, which were initiated by the Registrar of the District and Sessions Court, Nagpur, for offences under Sections 417, 420, and 511 of the Indian Penal Code. The dispute arose from a tender floated by the Registrar for supplying 725 steel cupboards weighing 69-70 kgs each. An agreement was entered into between the applicant and the Registrar, containing a clause that the seller would deliver the cupboards only after inspection and approval within 30 days from the date of order.

The prosecution alleged that on 23.11.2006, the applicant attempted to supply two cupboards weighing only 60 kgs each, which led the Registrar to report the matter to the District Judge. The District Judge forfeited the applicant's earnest money deposit and ordered the lodging of a first information report for cheating. Following investigation, a charge-sheet was filed, which the applicant challenged before the court in the present application.

Legal Issues Presented

  1. Whether the applicant's act of attempting to supply steel cupboards weighing less than agreed constituted the offence of cheating under Sections 417, 420, and 511 of the Indian Penal Code.
  2. Whether the absence of a formal written order for supply from the Registrar affected the validity of the prosecution.
  3. Whether the forfeiture of earnest money deposit and filing of the first information report were justified under the facts and terms of the agreement.

Arguments of the Parties

Applicant's Arguments

  • The agreement required supply within 30 days from the date of order, but no order was ever received by the applicant.
  • The applicant informed the Registrar that due to rising steel prices, he could not supply cupboards weighing 69-70 kgs and offered two sample cupboards weighing 60 kgs each for approval.
  • The applicant did not receive any payment or advance, thus no property of the government was entrusted to him, negating any criminal intent or cheating.
  • The forfeiture of earnest money was not challenged and there was no intention to recover it.
  • The applicant contended that the District Judge's reaction was disproportionate and that the filing of the first information report was premature and unjustified.

Respondent's Arguments

  • The applicant attempted to supply goods of inferior quality (60 kgs instead of 69-70 kgs), constituting cheating.
  • The District Court administration incurred a loss of over five lakhs due to having to purchase cupboards from Small Scale Industries after the applicant failed to supply.
  • The application for quashing the FIR and charge-sheet should be dismissed to uphold the prosecution.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court analyzed the terms of the agreement, noting that the supply was to be made within 30 days from the date of order, but no written order was placed by the Registrar. The court observed that it was the District Court administration's responsibility to place the order promptly, which it failed to do. When the applicant realized that steel prices were rising, he approached the District Court with two sample cupboards weighing 60 kgs each, explaining his inability to supply the originally agreed weight.

The court found no evidence that the applicant had received any payment or had control over government property, which is essential to establish the offence of cheating. The court held that the allegation of attempted cheating was not supported by the facts since the applicant transparently communicated his inability to supply as per the original terms and only offered samples for approval.

The court also noted that the claim of financial loss by the District Court administration could not be examined in these criminal proceedings and that the administration was free to pursue civil remedies for damages. The forfeiture of the earnest money deposit was acknowledged, and the applicant did not seek its recovery.

Consequently, the court concluded that the allegations in the FIR and charge-sheet did not constitute any offence, particularly not attempted cheating.

Holding and Implications

The criminal application No. 228 of 2008 is allowed and the rule is made absolute in terms of the prayer clause of the application.

The direct effect of this decision is the quashing of the FIR and charge-sheet against the applicant, thereby ending the criminal proceedings. No new legal precedent was established, and the court left open the possibility for the District Court administration to seek civil remedies for any alleged financial loss.

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    Mohanlal S/O Nandram Choudhari v. State Of Maharashtra Another

    By this application, the applicant has put to challenge First Information Report No.6 of 2007 and charge-sheet case No. 257 of 2007 initiated at the instance of Registrar, District and Sessions Court, Nagpur, for the offences punishable under Sections 417, 420 and 511 of Indian Penal Code.

    2.In response to the tender that was floated by the Registrar, District & Sessions Court, Nagpur, the applicant submitted his offer to supply 725 steel cupboards to the establishment of District & Sessions Court, Nagpur, each weighing 69-70 kgs. Accordingly, an agreement was entered into between the applicant and the Registrar of the District Court, Nagpur and clause 5 thereof reads thus:

    "The seller has agreed to deliver the Steel Cupboards/Almirahs only after its inspection and approval as stated above within 30 days from the date of order."

    3. It is the case of the prosecution that on 23.11.2006 the applicant attempted to supply two pieces of steel cupboards by approaching the Registrar of the District Court. The Registrar found that those two pieces of steel cupboard were weighing 60 kgs. only each. Therefore, the Registrar made a report to the District Judge about the same who, in turn, forfeited the earnest money deposit of the applicant and also ordered lodgement of first information report at police station against the applicant for cheating. Accordingly, first information report was lodged. After filing of the first information report, investigation was made and chargesheet has been filed and they are now under challenge before this Court in the present application.

    4. Mr.Bhangde, learned counsel for the applicant, vehemently argued that the agreement was entered into on 19.10.2006 and clause 5 thereof indicate that the supply was to be made within thirty days from the date of placement of order by the District Court establishment. The applicant never received any order for quite sometime and therefore he approached the Registrar of the District Court and informed him that he did not receive any order and by then the rates of the steel in the market had gone up and therefore it would not be possible for him to supply the goods of the said weight, i.e. 69 to 70 kgs. per steel cupboard. He accordingly gave a letter to the District Judge. The cupboards sought to be supplied were admittedly only two since they were the sample subject to approval of the District Judge. Mr.Bhangde argued that the Hon'ble District Judge got annoyed and ordered filing of First Information Report against the applicant and ordered forfeiture of earnest money deposit of the applicant. He further argued that this order of forfeiture of earnest money deposit has not been put to challenge by the applicant nor he has any intention in future to file suit for recovery of the said money. Mr.Bhangde adversely commented on the attitude of the administration of District Court.

    5. Per contra, Mr.Sonak, learned A.P.P. assisted by Mr.Gaikwad, Deputy Registrar, High Court, Nagpur, supported the impugned action and argued that the applicant attempted to supply the goods of inferior quality, i.e. each cupboard weighing 60 kgs., when actually he had agreed to supply the same weighing 69 to 70 kgs. and this is nothing but a cheating. Learned A.P.P. urged this Court to uphold the action against the applicant and prayed for dismissal of the application.

    6. Mr.Gaikwad submitted that since the applicant did not supply the goods, the District Court administration was required to purchase it from Small Scale Industries and in that process incurred loss to the extent of more than five lacs.

    7. It is seen that the agreement was entered into between the parties and clause 5 thereof took care of the interest of the District Court administration by providing thereunder the supply within 30 days from the date of order. There is nothing on record or in the charge-sheet to show that any order was placed in writing by the Registrar to the applicant. It was for the District Court administration to place order immediately after the agreement was entered into and get its goods. That never happened. When the applicant realized that the market rates in respect of the steel were rising up and he would not be in a position to supply the goods as agreed, he went to the District Court administration with two samples of cupboards with a request that it would not be possible for him to supply the cupboards of the agreed quality in view of escalation of steel prices but he would supply the cupboards weighing 60 kgs. Admittedly the applicant did not receive a single rupee from the District Court administration either by way of advance or part consideration and therefore no property of the Government was entrusted to him nor he had any dominion over the property of the Government so as to constitute the offence of cheating.

    8. The allegation about attempt to cheat, if seen carefully, will show that there is no element of cheating since the applicant straightway wanted to convey that he could not supply the cupboards of the agreed quality in view of escalation of steel prices in the market. To say that the action of the applicant in attempting to supply two steel cupboards each weighing 60 kgs. would be attempted cheating would be too absurd since he did not come with total 725 steel cupboards of the weight of 60 kgs. each. There appears to be a total confusion in making haste in filing the first information report against the applicant by assuming that there was attempt to cheat the District Court administration. The submission by Mr.Gaikwad that loss to the extent of about Rs. Five lacs was caused because of the alleged attempt to commit offence by the applicant cannot be examined in these proceedings. The District Court administration was free to file suit for damages. However, no criminal offence is made out in the light of the above discussion, as is sought to be done. The District Court administration has admittedly forfeited the entire earnest money deposit of Rs. 50,000/- of the applicant and the applicant does not intend to recover the same from the District Court administration, as submitted by Mr.Bhangde.

    9. In view of the above observations and looking to the facts and circumstances of the case, I have come to the conclusion that the allegations made against the applicant in the first information report as well as in the charge-sheet do not constitute any offence muchless the offence of attempted cheating. In the result, I make the following order.

    10. Criminal application No. 228 of 2008 is allowed. Rule is made absolute in terms of prayer clause (i) of the application.

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    Mohanlal S/O Nandram Choudhari v. State Of Maharashtra Another
    (Feb 3, 2010)