J SMITH CLOTHING PVT LTD Vs. ANIL KUMAR JAIN PARTNER OF ANIL KUMAR JAIN AND CO A REGISTERED PARTNERSHIP

JUDGEMENT

(1.) THE petitioners are hereby assailing the correctness, propriety and legality of the order passed by the Metropolitan Magistrate, Court Room No. 23rd, Esplanade, Mumbai in Criminal Case No. 82/s/98 whereby he issued the process against the petitioners in respect of offence punishable under Section 420 r. w. Section 34 of I. P. C.

(2.) THE petitioners had an agreement with M/s. Anil Kumar Jain and Co. in respect of supply of underwear garments as sole distributors. It was alleged that at the time of entering into an agreement, it was not mentioned that respondent No. 1 Anil Kumar Jain would be required to pay a sum of Rupees Five Lakhs towards deposit but after he was appointed as distributor, a demand was made by the petitioners that respondent M/s. Anil Kumar Jain and Co. should give them a sum of Rupees Five Lakhs towards deposit. That amount was given and thereafter some articles were sent to M/s. Anil Kumar Jain and Co. and out of them some were found to be defective which were returned back. It was alleged in the complaint that the payment of returned goods would be sent to M/s. Anil Kumar Jain and Co. within one week from the date of receipt of the goods but inspite of the demand, such amount was not paid to M/s. Anil Kumar Jain and Co. by the petitioners. On the contrary, respondent No. 1 proprietor was abused in vulgar language. Respondent No. 1 alleged that the said firm has been deprived of its money to the tune of Rs. 2,75,000/ -.

(3.) THE complainant alleged in the complaint in paragraph 5 that the petitioners promised them during the initial discussion of the meeting that High Class (superior) quality of products would be maintained. To promote the sale of undergarments, wide publicity would be given. It was promised that advertisement would be given in all leading newspapers of India as well as in Mumbai in respect of those undergarments and to encourage the sale and to promote the business, discount coupons would be published in all leading newspapers and street rock shows would be arranged near colleges and discount coupons would be distributed to college students. It has been alleged that after first meeting, second meeting was held in Oberoi Hotel somewhere in the first week of December, 1997 and the talks were held at length. Third meeting was held in Hotel Ambassador and distributor status sheet was signed by accused No. 5 in person and on behalf of Accused No. 1 in presence of Accused Nos. 2 and 6 on 24. 12. 1997. It has been alleged in the said complaint that a promise was given to them that the said sum of Rupees Five Lakh would be adjusted towards the goods. Thus the complaint alleged that the accused practised cheating in respect of him and committed the offence punishable under Section 420 r. w. Section 34 of I. P. C.