MODI CEMENT LIMITED AND ANR. Vs. ASSAM STATE CO-OPERATIVE MARKETING AND CONSUMERS FEDERATION LTD. AND ANR.

JUDGEMENT

(1.) THE Petitioners have approached this Court for quashing a criminal proceeding (Criminal Case No. 389 of 1992) registered under Sections 403/406/34/I.P.C pending before the Chief Judicial Magistrate, Guwahati.

(2.) THE opposite party No. 1 and 2 have filed the above criminal complaint Case No. 389/92 in the Court of Chief Judicial Magistrate against the Petitioner and 3 others contending inter alia that the opposite party No. 1 was appointed by the Government of Assam as centralised handling agent for handling, carriage and salts of State quota of levy cement (public sale category). In pursuance of the said appointment, the opposite party No. 1 was handling levy cement till the 1st of March, 1989 when the Government of India decontrolled cement.

(3.) AGAINST the said payment of Rs. 1,32,74,752.32P, the Petitioner No. 1 despatched from time to time cement worth Rs. 77,15,191.47P . (Rupees seventy seven lakhs fifteen thousand one hundred ninety one and paise forty seven only) and raised necessary invoices on the opposite party No, 1. However, owing to the abolition of the control on cement by the Government of India with effect from 1.3.89 a sum of Rs. 55,59,260.85p, (Rupees fifty five lakhs fifty nine thousand two hundred sixty and paise eighty five only) remained with the Petitioners towards the value of the levy cement. The Government of India through the Joint Development Commissioner for Cement Industry, New Delhi by letter dated 31.12.89, directed the Petitioner No. 1 to refund all amount lying with the Petitioner No. 1. A telegram was also sent on 15.5.89 by the opposite party No. 1 to the Petitioner requesting him to refund the entire amount lying with him. The opposite party No. 1 to also by yet another letter dated 10.7.89 addressed to the Petitioner No. 1 again requested for refund of the aforesaid amount. A detail statement of the account was also enclosed with the said letter. The Development Commissioner Cement Industries, Government of India, New Delhi by a Circular dated 3.4.89 directed the Petitioner No. 1 to return the entire balance amount by 15.4.89. In spite of repeated request by the opposite party No. 1 and the directions given by the officials of the Government of India the Petitioners failed to refund the amount. According to the opposite party, the Petitioner No. 1 retained the said amount dishonestly and fraudulently am) misappropriated it and converted to its own use in its business.