RAJ MEHTA Vs. H P S CHAWLA

JUDGEMENT

(1.) Petitioner is one of the accused in criminal complaint No. 139/1995 titled H.P.S. Chawla v. Raj Mehta & Ors. under Sections 147/ 148/323/506, IPC r/ w Section 120-B, IPC filed by the respondent. On the same incident, the petitioner lodged an FIR being No. 292/1994 dated 25.9.1994 under Sections 354/34, IPC. It appears that before the incident over which the FIR No. 292/1994 and the complaint case No. 139/1995 were filed there were certain disputes between the parties. Criminal complaints under Section 138 of Negotiable Instruments Act were filed by the petitioner, Director of M/s. Evita Foods (P) Ltd. against the respondent, Director of M/s. Earl Chawla & Co. (P) Ltd. They had been doing a business under a memorandum of understanding dated 18.3.1994. Over their business deals some civil proceedings were also pending. Out of one such civil proceedings, an appeal being No. FAO 333/1996 was preferred before this Court by M/s. Earl Chawla & Co. (P) Ltd. On 5.8.1998 parties to the FAO No. 333/1996 submitted before this Court that the parties were ready and willing to refer to their pending disputes to their Arbitrator. The order passed on 5.8.1998 which shows the position as it stood before the Court is as under: "5.8.98. Present: Ms. Sangeeta Jain for appellant. Mr. Chetan Sharma for respondent." F.A.O. No. 333/96 & CM. No. 3750/96 The learned Counsel for parties on specific instructions state that they are ready and willing to refer all the pending disputes to an Arbitrator including the ones which are the subject matter of criminal proceedings. They shall prepare a list of disputes and submit the same before the Court on the next date so that a composite order can be passed for referring the same to an Arbitrator who may be acceptable to both the parties. List for further directions on September 4,1998. The file of Suit No. 1166/ 95 be also sent to Court on that date. August 5, 1998 C.M. Nayar, J. H. Soni"

(2.) Following this order a list of cases which were pending inter se between the parties were filed by the appellant, namely, M/s. Earl Chawla & Co. (P) Ltd. while the Counsel for the respondents namely M/s. Evita Foods (P) Ltd. and another filed a list of referable disputes. By an order dated 4.9.1998, appellant was also directed to file a list of referable disputes. It appears that the FAO 333/1996 was finally disposed of by an order dated 4.3.1999. The order of 4.3.1999 is reproduced below:

(3.) The fact important for the purpose of the present petition which seeks quashment of the complaint filed by the respondent is that in the list of cases filed by M/s. Earl Chawla & Co. (P) Ltd., the complaint case No. 139/95 was not included. Subsequently when the order dated 4.3.1999 was passed when the criminal complaint under Section 138 of the Negotiable Instruments Act and the FIR under Section 354, IPC were offered to be withdrawn no mention was made by any of the two parties about the criminal complaint No. 139/95. This omission came up for consideration before this Court in CM No. 554/2002 and FAO 333/1996 when M/s. Evita Foods (P) Ltd., the respondent in the FAO applied for a direction to the appellant therein to withdraw the complaint under Sections 506/323/34/147/148/120-B of the Indian Penal Code. The Court considering the previous proceedings passed following order dated 7.11.2003 which is quoted below: