ANIL NAMBIAR Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THE present application has been filed by the petitioners under sec. 482 of Criminal Procedure Code for the prayer to quash Inquiry application No. 15/2002 lodged by respondent No. 2 before the Judicial magistrate (First Class), Anand, and also the proceedings initiated under m. Case No. 7 of 2002 pending before the Anand Town Police Station pursuant to the order passed dated 12. 2. 2002 in the aforesaid Inquiry application and also stay of further proceedings.

(2.) THE short facts of the case, briefly summarized, are as follows: 2. 1 The petitioner No. 1is an employee of Cholamandalam investment and Finance Co. Ltd. , a company incorporated and registered under the Companies Act, 1956 ("the company" for short) engaged in the business of financing the vehicles on hire purchase basis. Respondent no. 2 was in need of financial assistance for acquiring a vehicle on hire purchase basis and therefore approached the company. The petitioner company sanctioned finances of Rs. 5,37,000/- as per the terms and conditions agreed upon by and between the parties for which a hire purchase agreement was entered into. Thereafter, as the installments were not paid, the petitioner company herein seized the vehicle and pursuant thereto the aforesaid complaint/application being M. Case No. 7/02 on the basis of Inquiry Application No. 15/02 came to be registered for the alleged offences under secs. 420,, 395, 398, 350, 504, 506 (2) and 114 r/w sec. 120-B of IPC and therefore the present petition has been filed seeking to quash the aforesaid proceedings on the grounds mentioned in detail in the memo of application, inter alia, that the complaint filed is frivolous and the petitioner company has acted under the legal and contractual rights and no offence has been committed. It is also contended that it is essentially a civil matter and it is not a subject-matter of criminal proceedings and the petitioners are within their rights as per the terms of the agreement to take necessary action in case of default for payment of hire purchase charges.

(3.) LEARNED advocate Mr. Majmudar referred to the Hire Purchase agreement and also referred to the clauses particularly clauses 19 and 20 and emphasized, "the company shall, thereupon, immediately on the occurrence of the event giving rise to the determination of this agreement, be entitled to enter any place or places where the hired articles may then be, remove or retake the possession of the same. " Learned advocate mr. Majmudar submitted that till the last installment is paid, the property or ownership of the vehicle would remain with the company and therefore could take* the physical possession of the vehicle under the agreement for which no offence can be said to have been committed.