SOL PHARMACEUTICALS LTD. Vs. JASWANT DILIPSING PATIL

JUDGEMENT

(1.) The petitioner-company has questioned order dated 3.6.2003 passed by learned Judicial Magistrate, First Class, Jalgaon in Criminal Case No.739/2002, whereby the learned trial Magistrate, upon prima facie satisfaction from the case record decided to take cognizance of offence punishable under Section 420 of Indian Penal Code and issued process against the petitioner-company.

(2.) It is the contention on behalf of the petitioner-company that the ingredients of the offence of cheating, as defined under Section 415 of the Indian Penal Code were not made out and the deposits accepted by the company under the scheme although by cash bond was subject to Hyderabad jurisdiction only. The scheme was floated by the company under which the investment in the bond was for Rs. 12,500/- with maturity amount of Rs.15,500/- after period of eighteen months. The advertisement was approved by the Board of Directors on 14.6.1996 and accordingly, deposits were accepted. The respondent-complainant lodged complaint when he could not receive the maturity amount despite his investment in the sum of Rs.25,000/- for two such bonds. Thus, alleging that offence punishable under Section 420 read with sec.34 of Indian Penal Code was committed on behalf of the petitioner-company. It is also submitted that the petitioner-company is provided with rehabilitation package, in view of the provision under Sick Industrial Companies (Special Provisions) Act, 1985 as no proceedings against assets of the company shall lie.

(3.) Learned Advocate for the petitioner, to support her submission made a reference to ruling in Hridaya Ranjan Pd.Verma vs. State of Bihar, 2000 AIR(SC) 2341 to argue that mere breach of contract would not amount to an offence punishable under Section 420 of Indian Penal Code, as it would be only a breach of civil contract and no fraudulent or dishonest intention is involved.