INDIAN COMPRESSORS LIMITED Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) The petitioners, Indian Compressors Limited (ICL) and its Managing Director, Hemant Didwania, have moved this Court under Sec. 482 of the Code of Criminal Procedure seeking quashing of the proceedings in G.R. Case No. 78 of 2023 arising out of South Bidhannagar P.S. Case No. 17 dtd. 26/1/2023 under Ss. 406/420 of the Indian Penal Code), presently pending before the Learned Additional Chief Judicial Magistrate at Bidhannagar, North 24 Parganas. While the revision originally challenged the legality of the FIR and the disproportionate freezing of corporate bank accounts, the focus has now shifted to C.R.A.N. 8 of 2023, a joint application for quashing based on an amicable settlement arrived at between the warring commercial entities. The Factual Matrix

(2.) The genesis of this litigation lies in a commercial transaction involving the export of centrifugal pumps to Bangladesh. Petitioner No. 1 is a manufacturing long standing concern and Petitioner No. 2 is its Managing Director. The dispute hit a snag over an alleged typographical error in the valuation of spare parts. While the petitioners claimed a bona fide mistake in currency conversion (USD to INR), the opposite party no. 2 alleged that the petitioners dishonestly adjusted a sum of Rs.3,29,220.00 from a GST security deposit held in trust. Investigative Overreach

(3.) The Opposite Party No. 2, lodged the FIR on 26/1/2023 alleging dishonest misappropriation and cheating. Upon a complaint involving a commercial claim of approximately three lakhs, the police initiated a "debit freeze" on the Petitioner Company s bank accounts, which maintain a credit limit of Rs.27.00 Crores in the investigative response. Such disproportionate exercise of power effectively paralyzing a prolific business over a minor accounting discrepancy strongly suggests that the criminal machinery was co-opted as an "arm-twisting" tactic for civil recovery. Consequently, a Charge Sheet No. 84 of 2023 was filed on 30/4/2023 by the Investigation Officer. It triggered the petitioner to prefer this revision.