G SAGAR SURI Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) Leave granted.

(2.) This appeal is directed against the judgment dated June 5, 1999 of Allahabad High Court dismissing the application of the appellants filed under Section 4821 of the Code of Criminal Procedure (for short, the 'Code'). By this application the appellants had sought quashing of the criminal proceedings pending against them under Section 406/4022 of the Indian Penal Code (for short, the I.P.C.) in the Court of Chief Judicial Magistrate, Gaziabad and arising out of Case No. 674 of 1997 of Police Station Noida, district Gautam Budh Nagar.

(3.) The First Information Report (FIR No. 517 dated August 17, 1997) was filed against seven persons including the two appellants by Mr. P.K. Sen Gupta (Respondent No. 2), General Manager, M/s. Phoenix International Finance Ltd., NOIDA (for short, the 'Finance Company). He alleged that Ashwani Suri, G. Sagar Suri (the first appellant) and Sukhvinder Singh contacted his company on telephone in the first week of June, 1996 with intention to cheat and commit fraud on him. They had stated that they along with Shalini Suri, Shama Suri (the second appellant), Charanjit Singh and M.L. Kampani were the Directors of M/s. Ganga Automobiles Ltd. and that they would come later for a meeting personally. They had also told that their company Ganga Automobiles Ltd. was doing good business and that if complainant's company could give a loan of Rs. 50,00,000/- (Rupees fifty lakh only) to M/s. Ganga Automobiles Ltd, the loan would be repaid with interest by September 13, 1996. The complainant then alleged that the "above said accused persons turn by turn continued visiting the applicant's office" for making request for grant of loan. Relying on their persuasion but without realising their mala fide and fraudulent intentions, the Finance Company gave Rs. 50,00,000/- by means of cheque No. 375453 dated June 19, 1996 drawn on the Punjab and Sind Bank, New Delhi. Complainant then said "the accused persons issued two cheques to the applicant company for repayment of above said money bearing No. 08-4049 and 84450 both dated 13-9-1996 for rupees fifty lakhs towards payment of principal sum and Rs. 86625/- towards payment of interest respectively and drawn on Corporation Bank". When these cheques were presented for payment, these were returned dishonoured with the remarks that sufficient funds were not available. The Finance Company again contacted the accused persons many times on telephone as well as by writing letters and asked them to make payment but they failed to do so and even started avoiding the complainant. However, the accused persons again came to the office of the Finance Company on January 2, 1997 and asked the Finance Company six months further time for the payment of the amount as they said "a mishappening took place with them as a result of which they are suffering financial constraint." The complainant said he believed their wordings and the accused again issued two cheques on July 2, 1997 for Rs. 50,86,625/- towards principal and Rs. 9,40,008/- towards interest. This time these cheques were drawn on the Grindleys Bank, Connaught Place, New Delhi and again when presented for payment were returned dishonoured with the endorsement "insufficient funds" Complainant thus said in his report that the aforesaid acts of the accused persons were fraudulent and committed with the common object to cheat the Finance Company. They did not want to refund the money in any way. He therefore, requested for legal action against the accused persons. On the basis of the First information Report, the Police registered the case against seven persons, namely, Ashwani Suri, G. Sagar Suri (the first appellant), Survender Singh, Shalini Suri, Shama Suri (the second appellant), Charanjit Singh and M.L. Kampani, After the investigation, the Police submitted charge sheet dated June 4, 1998 in the Court of the Chief Judicial Magistrate against four persons, namely, G. Sagar Suri (the first petitioner), Shama Suri (the second petitioner), Ashwani Suri and Shalini Suri describing all of them as Directors of M/s. Ganga Automobiles Ltd. It was stated in the charge sheet that investigation was still pending against Charanjit Singh, M.L. Kampani and Mukender Singh.