HIRA LAL CHAUDHARY Vs. STATE

JUDGEMENT

(1.) This is a composite application under Section 435 read with Sections 439 and 561-A Cr. P.C. and under Article 227 of the Constitution praying that certain criminal proceedings pending in the court of the Judicial Magistrate, Bareilly under Sections 406, 408 and 409 read with Sections 34 and 109 and 420, I.P.C. be quashed.

(2.) The facts of the case as disclosed in the affidavit accompanying the application in brief are given herein. There is a joint stock concern of the name & style of Messrs. Mira Lal Debi Prasad Ltd., having its head office at 23/24 Radhey Bazar, Calcutta, of which petitioner No. 1 is the managing director and petitioners Nos. 2 to 4 are the directors. The Indian Turpentine and Rosin Com., Clutter-buck Ganj Bareilly (hereinafter called the Bareilly Firm), through whom the State is represented in this case as an opposite Party, are manufacturers of rosin and turpentine. There was an agreement on the 23rd May 1949 by which Messrs. Hira Lal Debi Prasad (hereinafter called the Calcutta firm) was appointed as selling agents for a year. This agreement was renewed by another agreement of the 15th July 1950. This second agreement to a certain extent only modified the previous agreement and a certified copy of it has been filed as Annexure D to the affidavit accompanying the application. The detailed terms of the agreement will be given later on. In fact the Calcutta firm was appointed a selling agent of the products of the Bareilly firm within a certain area. The quantities were to be allotted by the Bareilly firm. The only restriction to the sale was that they would not sell the goods to those customers with whom the Bareilly firm would make periodical contracts. The despatches were to be made to the Calcutta firm according to the quota fixed by the Bareilly firm and the Calcutta firm was to take delivery of the goods and store them in the godown of the Bareilly firm at Calcutta and all the expenses of the Bareilly godown at Calcutta were to be borne by the Bareilly firm. All the payments in respect of goods sold by the Calcutta firm in retail from stocks or to dealers in wagon load lots despatched direct from Clutter-buck Ganj, had to be deposited by the Calcutta, firm into the account of the Bareilly firm with the Allahabad Bank, Ltd., Calcutta immediately on receipt, and the Calcutta firm was to be responsible for all bad debts in respect of goods sold in retail ex-godown Calcutta or to dealers in wagon load lots. The rate of commission was fixed for different kinds of supplies.

(3.) The second agreement of 15-7-1950 was for a period of one year, i.e., from 1-8-1950, and was liable to be terminated by three months' notice from either side. It was alleged that the goods were to be despatched by rail to Calcutta with railway freight pre-paid and the Bareilly firm was to be both the consignor and consignee and the invoices and railway receipts used to be impressed with the seal of the Bareilly firm.