Criminal Proceedings Cannot Be Quashed Merely Because Investigation Agency Filed A Negative Report: Madras HC

The Court was hearing a Criminal Original Petition filed under Section 482 of CrPC seeking to quash criminal proceedings in a cheating case.

The bench of Justice P Dhanabal observed, “…merely because, the investigation agency filed a negative report is not a ground to quash the proceedings.”

Advocate Rupert J Barnabas appeared for the Appellant and Advocate S Raveekumar appeared for the Respondent.

Brief Facts-

An FIR was filed against the Petitioners for offences under Sections 420, 465, 471, 477(A) read with Section 34 of the IPC. The Petitioners sought to quash the FIR which resulted in quashing of Section 420 IPC, but the Petition was dismissed for the other offences. After the investigation, the Police closed the case. Respondent no. 1 filed a protest Petition, and the case was taken up for the remaining offences. Hence, the Petitioner challenged the proceedings.

The Court mentioned the decision of the Supreme Court in Trisuns Chemical Industry vs Rajesh Agarwal and others (1999) and held, “Quashing of complaint or FIR in respect of cheating, criminal prosecution cannot be thwarted merely because civil proceedings are also maintainable.”

The Court further mentioned the Supreme Court decision in Indian Oil Corporation vs. NEPC India Ltd., (2006) where it was held, “disputes arising from breach of contract - civil remedy available and availed of - remedy under criminal law is not barred if the allegations disclose a criminal offence - allegations contained in the complaint, taken on their face value, disclose a criminal offence, complaint cannot be quashed merely because it relates to a commercial transaction or breach of contract for which civil remedy is available or has been availed.”

Accordingly, the Court dismissed the Petition.